Concept of GSP & ASP under GST...

Hello Readers,
Goods and Service Tax, a huge technology based regime is expected to be implemented by 1st July, 2017.

To make 80 Lakhs (approx.) existing Tax payers in complying with GST Provisions is Big Task or Challenge for the Government.

To churn out these hurdles and to reach out maximum taxpayers, the Government has established GSP (GST Suvidha Provider) Eco system.

This eco system majorly consists of Government, Tax Payers, GSP, GSTN and Application Service Provider (ASP).

There is lot of confusion in between the words GST Suvidha Providers (GSP) & Application Service Providers (ASP)

So, let’s learn about exact meaning of GSP and ASP, then in upcoming sessions I will post Role of GSP and their working mechanism at a later time.

GST Suvidha Providers are approved by Government and currently there are 34 approved GSPs in our country.

The list of approved GSPs can be viewed through this link - http://www.gstn.org/gsp-list/

But, any software developer can become an Application Service Provider (ASP) and no need to get approved by the government.


Relationship between a GSP and an ASP can be viewed through following diagram:



By looking at the diagram, we can understand that Every ASP shall have a contract with Approved GSP to get access to GSTN. (To know more about GSTN click here - https://gst4cacscma.blogspot.in/2017/06/goods-and-service-tax-network-gstn-means.html)

Here a question arises, whether a GSP can act as an ASP or not…?

The answer is YES, GSP can develop a solution for GST compliance. For example- Karvy Data Management Services Ltd. Is both an ASP as well as GSP.

BUT, an ASP may or may not be a GSP.

Every GSP will have entire access to GSTN network and no ASP can have access to GSTN.
So, this is the major differences of ASP & GSP.

I will post circumstances warranted for establishing such GSP eco system & how it get resolved through GST Suvidha Providers (GSP) in coming days.

Regards
Kumara Swamy A




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