Role of GSP and ASPs in New Taxation Regimen

Taxation Regimen

GST, being the most effective tax regimen needs supportive tools an IT platform to keep on running smoothly without any errors. To make GST more effective, accurate and manageable, Government need GSPs (GST Suvidha Provider) and ASPs (Application Service Provider). They not only help to manage the mammoth data but also help people in GST registrations, uploading of invoices, tax filing, payments and claiming returns and ITC (Input Tax Returns). They are known as the two main components of GSTN which act as a center platform to hold the vast tax data. In this post, we discuss the role of GSPs and ASPs in GST, the new tax regimen. Let’s take a look.

GSP (GST Suvidha Provider)

GSP is considered as a tool or enabler that helps to inform the taxpayers about various GST laws and provisions involved in GST using web platform. It not only allow users or taxpayers to execute the provisions but also help in filing their tax and returns. GSPs are officially appointed by the Government to help taxpayers and handle the responsibilities and provisions under GST. The taxpayer need to fill all the necessary details under GSP and the return will automatically be calculated which are further filed on behalf of taxpayer with GSTN.

ASP (Application Service Provider)

ASP stands for Application Service Provider which is used to file GST taxes, returns and claim ITC. ASPs can also develop end-to-end solution for businesses, taxpayers, enterprises, organizations as well as the corporates. It is one of the best platforms available for filing returns, getting registered under the GST and to perform various other functions. Related to GST. Businesses just need to share the sales of goods and services with the ASPs so that they can prepare the GST returns.

GSTN (Goods and Services Tax Network)

GSTN is a non-profitable organization that was officially authorized by the Government and created by a private company. The main objective of creating GSTN is proper management, develop and render the IT system, infrastructure, and services that a common man, State and central Government can use. Using this platform, taxpayers or stakeholders can file GST returns, pay tax and claim ITC. It also helps to promote paperless tax compliance regime, digital India which is a feasible and time-saving way to grow our country’s economy. The role of GSTN are mentioned below:

  • Calculation involved in IGST
  • Matching the invoices, payment details, and banking network
  • Generation of business intelligence and analytics
  • Assisting in Registration Process
  • Calculations of ITC

Role of GSP and ASP in GST

GST Bill in India has now implemented the G2B portal to allow users and taxpayers to approach the GST system. It might not be suitable for those taxpayers or organizations that are providing services or goods under the third party application. G2B application will provide convenience to the users and the taxpayers in terms of accessibility as they can use it from anywhere from any device be it laptop, mobile, iPad or any other interface.

The major role of ASP is to provide the users an easier and simpler platform for filing taxes, returns and claiming ITC. ASP not only protects the sensitive data of the organization from malware threats but also provides the facility of data verification. It is, however, important to ensure that user must provide the authentic data. Incorrect details or errors can lead to liabilities of the tax filing entity. Another major benefit of availing the services form the ASPs is that it maintains the record of the data from updation till the creation.

Relation of GSP and ASP with the Taxpayer

The relation of GSP and Ass with the taxpayer is that they can use these applications to get registered under the GST, file taxes, claim returns and ITC. These government approved applications save time, efficient enough to perform the complex calculations involved in GST. The introduction of such applications have reduced the paperwork and promoted the digital India. Though they can easily calculate the returns and taxes for the user, they require appropriate data for the same.

The Final Word

GST is not only going to enhance the economy of the nation, but also will enable various small businesses, entrepreneurs, and enterprises to make a competitive edge in the market. If you too are looking for an efficient platform for registration under GST, filing returns and knowing the GST exemption rules, get a software solution to enhance the productivity of your business without being affected by the new taxation regime.

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