Who are ASPs? ASPs are the qualified technology providers who are building and offering innovative solutions for GST Compliance and tax determination for businesses and tax consultants. As GST Compliance is top of the agenda for companies big or small, they play a vital role in GST Ecosystem. An ASP in the GST system will be acting as a connecting bridge between the ultimate tax payer and the GSP.
Do you need Application Service Provider? Primary objective of ASP-GSP is to ensure compliance and governance under the GST regime, which will require deep domain and technology knowledge. ASPs’ drive long term service subscription model to provide the tax filing and managing the reconciliation process. Organizations must recognize the value of the service of ASP as data sharing must comply to maintaining privacy, reliability and control.
Key Challenges: Paper and offline based reporting to completely online and digital Reporting. Continuous integration between companies and government tax systems, requires continuous planning and filing of taxes unlike one time filing in a fiscal year. To be GST compliant, all the companies in the Ecosystem to compliant that said dependency on accuracy of the data is a big challenge.
GST rules released are vast and complex to initially teething issues cannot be avoided Initial setup for compliance will take significant time and effort of the management and tax consultants Technical complexity of formats and filing protocols Challenging for companies to automate, scale and comply in a very short span of time. Security and data access control is a challenge especially for public listed companies
ASP- GSP and Taxpayer: Taxpayers or users file their returns via through ASP and GSP mode. Both ASP and GSP can be treated as a third party application, it will charge some cost from the taxpayer or user for filing returns. From the taxpayer point of view, GSP and ASP will save time, money and reduces paperwork. Through ASP-GSP taxpayers can file their returns easily without any knowledge of taxation, they just have to fill all the required details and returns will be calculated automatically and submitted to GST portal.