GSP – A Brainchild of Goods and Services Tax Network
GSP as a term has been tossed by GSTN (Goods and Service Tax Network) which is a private company in which central and state government collectively holds 49.5% stake. GSTN has been set up with the sole objective of development and maintenance of IT infrastructure for Goods and Services Tax implementation in India. This is in-line with Digital India initiative for a paperless tax compliance regime and brings more ease in doing business.
Who is a GSP?
GSP stands for GST Suvidha Provider. A GSP is considered as an enabler for the taxpayer to comply with the provisions of the GST law through its web platform (essentially an online compliance platform such as ClearTax ).
Let’s take one example to understand it better:
ABC Ltd is a private multinational company which is running operations on SAP ERP. All records with respect to Purchases and Sales are maintained in it. At the end of each month, reports are generated from ERP and attached with the tax return and uploaded on government’s portal.
Our government is now aiming for single and automated workflow wherein these ERP companies can build an interface with government’s portal and all the GST related compliance can be done directly through their software.
GSP need not be only ERP companies but can be startups or technology companies having expertise in building web applicationns
In the first round of allotment of license, thirty-four companies have been provided with GSP license. A complete list of these GSPs is provided here.