Role of GSP and ASP in the New Taxation Reform


Although the introduction of GST has changed the way businesses use to deal with and pay taxes, it has been difficult for them to understand the new taxation regime. The entire compliance will be working with the new database which is known as GSTN. It is a non-government, non-profitable organization that is responsible for maintaining the database of all the invoices generated every month all around the country.  It will receive the returns filed by the businesses, organizations or companies via GSPs (GST Suvidha Providers). The vast majority of companies can file the taxes with the help of GSPs and ASPs or a multi-service provider. In all the case, the organizations have to get registered by providing all the necessary details and data on sales and purchases so that they can prepare the returns and file the GST with the help of GSP or ASP. In this post, we list the role of GSP and ASP in the GST, the new taxation reform.

Data Authentication

The data that you’ll submit to ASP as a business will be used to file GST returns. After the GST registration online, make sure whatever information you provide to ASP must be authenticated and error free. In case of any error or incorrect filing, the data can lead to inappropriate returns which can further lead to liabilities for the taxable person or entity. It is, therefore, important for the corporate officers to file the data with accuracy and isolate it from other businesses.

Data Protection

ASP will be responsible for the protection of your organizations’ data including the sensitive information. This data contains information about the company’s main clients, the products or services that your offer, prices at which your offer these goods and services, the turnover that you earn every year and so on. ASP will also be knowing about the number of purchases in order to establish the margins at which you’re providing the products or services across the country. ASP will handle all the data related to your company’s revenue and will not allow it to share it anyone due to privacy concerns.

Data Archiving and Retrieval

Another major concern that you would want to know as an entity, a business or an organization after the GST registration online is that whether your ASP or GSP provides data archiving and retrieval. It is because what if you want to store your data for longer period of time beyond the date of filing taxes and annual returns. There are different ASP and GSP available that have been appointed by the Government. All you need to do is choose one which you feel will prove beneficial for your entity and ask them certain questions about data recovery, achieving, protection and so on. This way, you’ll clearly know the types of services they offer.

Audit Features

A reputed ASP platform stores all the information in a confidential way and keep a record of every detail that it processes. It will not only secure your data but also allow you to audit the flow of data from its upload entry till the creation of the returns. That’s the reasons more and more businesses are now availing ASPs for complex GST data storage and maintain it until the end of the year for filing returns. Make sure to check the features of the ASP before availing it. Therefore, it would be beneficial for your entity to check its audit features before acquiring it.

Application and Process Control

Filing of taxes is the responsibility of corporate officers of the organization or the company. It is advisable to establish full control on the ASPs so that you know the entire process and manage accordingly. In case of inconsistency when the disputes take place, the blame goes to the filter. If you failed to file the tax within the specified time limit it can lead to material impact.

The Bottom Line

GST compliance is the top agenda nowadays in India. The GSPs and ASPs are appointed for the GST registration processes, data security, privacy and recovery of companies availing their services. Maintaining the data privately, securely will definitely cost a bit money, however, reliable solutions are always hard to find. That’s the reason Government of India has given the cost-effective way of filing taxes to the businesses in the form of ASP and GSP.