GST Suvidha Provider (GSP)

The GST Regime in India is backed by the

Goods and Services Tax Network (GSTN), a centralised IT infrastructure to handle all aspects of GST administration in India. The Government of India (GoI) established Goods and Services Tax Network (GSTN) as not for profit, Section 8 company and incorporated on March 28, 2013. In the GSTN, the Government of India holds 24.5% equity and all States of the Indian Union, including NCT of Delhi and Puducherry, and the Empowered Committee of State Finance Ministers (EC), together hold another 24.5%. Balance 51% equity is with non-Government financial institutions. GSTN primarily provides IT infrastructure and services to the Central and State Governments, taxpayers and other stakeholders. To enable easy adoption of GST, GSTN has created a framework for providing GST Suvidha Provider (GSP) Licenses. In this article, let us look at GST Suvidha Providers or GSPs in detail.

GST Suvidha Providers (GSPs)

To access the GSTN or GST System, GSTN provides GST Suvidha Provider License or GSP License to third parties who satisfy the eligibility criteria. GSPs would be able to create third-party applications and allow application service providers (ASPs) to create an application in any interface, i.e., desktop, mobile, etc., with the ability to interact with the GST system. All third party applications must be designed to connect with the GST system via secure GST System APIs. Thus the GSPs together with the ASPs are envisaged to provide innovative and convenient methods to taxpayers and other stakeholders in interacting with the GST Systems from registration of entity to uploading of invoice details to filing of returns.

GST Suvidha Provider (GSP) Eco-System As shown in the illustration above, GSP providers are allowed to create GST application themselves or allow third-party application developers to access the GSTN through them. Also, taxpayers are free to choose Application Providers or GSP of his/her choice, irrespective and independent to the other. Thus a taxpayer can choose a set of services from one GSP and the rest from other GSPs. For example, a taxpayer can obtain GST registration through one GSP or ASP, while filing GST return through another GSP or ASP.

GST Suvidha Provider (GSP) License - Eligibility Criteria

Companies registered in India in the Information Technology, Information Technology Enabled Services, Banking, Financial Services and Insurance sector are eligible for a GSP license. All GST Suvidha Provider applicants must meet strict eligibility criteria. GSP applicants meeting the eligibility will be required to sign a contract with GSTN to become an authorised GSP. After signing the contract, the GST Suvidha Provider gets a unique license key for accessing the GST system.

GSP License: Batch 1 - Eligibility Criteria

The first set of GST Suvidha Providers shall meet the following standards for obtaining GSP license:

Financial Strength

Paid-up or Raised capital of at least Rs.5 crores and
Average turnover of at least 10 Crores during the last 3 financial years

Demonstration of Capabilities

Invoice upload by taxpayers
GST Return #1 and #2 preparation and filing
Reconciliation of downloaded GSTR2 with Purchase Register
Multiple GSTIN Ids mapped to a single user account
Multiple roles mapped to single GSTIN
E-sign / DSC integration for the signing of returns
UI / UX
Mobile interface
Alert generation to taxpayers
Security design

Technical Capabilities

Backend infrastructure, such as servers, databases etc., required specifically for the purpose of GSP work shall be based in the territory of India,
IT Infrastructure owned or outsourced to carry out a minimum of 1 Lakh GST transaction per month,
Data Privacy policy to protect beneficiary privacy, and
Data security measures as per the IT Act.

GSP License: Batch 2 - Eligibility Criteria

Following the onboarding of the First Batch of GST Suvidha Providers, the GSTN relaxed the eligibility criteria and invited the second batch. The following details the revised eligibility criteria:

Financial Strength

Paid-up or Raised capital of at least Rs.2 crores and
Average turnover of at least 5 Crores during the last 3 financial years (2014-15, 2015-16, 2016-17)
- For the Financial year (FY) 2016-17, the taxpayer may quote unaudited results, duly authenticated by the Company Secretary to follow up the audited and signed balance sheets. The taxpayer shall also share the relevant page of audited balance sheet of the earlier years.

Demonstration of Capabilities

Invoice upload by taxpayers
GST Return #1 and #2 preparation and filing
Reconciliation of downloaded GSTR2 with Purchase Register
Multiple GSTIN Ids mapped to a single user account
Multiple roles mapped to single GSTIN
E-sign / DSC integration for the signing of returns
UI / UX
Mobile interface
Alert generation to taxpayers
Security design
Technical Capability of GSP (Handling Large Load, Experience in handling large application, Managing Sizable Application Infrastructure, Experience in developing complex application etc.)

Technical Capabilities

Backend infrastructure such as servers, databases and others required specifically for the purpose of GSP work shall be based in the territory of India,
IT Infrastructure owned or outsourced to carry out a minimum of 1 Lakh GST transaction per month,
Data Privacy policy to protect beneficiary privacy, and
Data security measures as per the IT Act.

Back to Learn

Frequently Asked Questions

Common questions about GST Suvidha Provider License.

A GST Suvidha Provider (GSP) is a third-party entity licensed by the Goods and Services Tax Network (GSTN) to provide innovative applications and convenient methods for taxpayers and stakeholders to interact with the GST system. GSPs can create their own applications or allow other Application Service Providers (ASPs) to develop applications that connect securely with the GST system through APIs.

Companies registered in India in the Information Technology, Information Technology Enabled Services, Banking, Financial Services, and Insurance sectors are eligible to apply for a GSP license. They must meet strict eligibility criteria related to financial strength, technical capabilities, and the ability to demonstrate specific GST-related functionalities.

The eligibility criteria include minimum paid-up or raised capital, average turnover during the last 3 financial years, backend infrastructure based in India, ability to handle a minimum number of GST transactions per month, data privacy and security measures as per the IT Act, and successful demonstration of GST-related capabilities like invoice upload, return filing, reconciliation, and more.

Yes, taxpayers are free to choose different Application Providers or GSPs for various services, irrespective of each other. For example, a taxpayer can obtain GST registration through one GSP and file GST returns through another GSP or ASP.

As per the eligibility criteria, the backend infrastructure such as servers, databases, and other resources required specifically for the purpose of GSP work should be based in the territory of India.

GSPs must have IT infrastructure, either owned or outsourced, capable of carrying out a minimum of 1 Lakh (100,000) GST transactions per month.

GSPs and their authorized ASPs must design their applications to connect with the GST system via secure GST System APIs provided by the GSTN.

The Government of India holds 24.5% equity in the GSTN, while all States of the Indian Union, including NCT of Delhi and Puducherry, and the Empowered Committee of State Finance Ministers (EC), together hold another 24.5%. The remaining 51% equity is held by non-Government financial institutions.

The Goods and Services Tax Network (GSTN) is a centralized IT infrastructure established by the Government of India to handle all aspects of GST administration in India. It provides the IT infrastructure and services to the Central and State Governments, taxpayers, and other stakeholders in the GST regime.

GST Suvidha Providers (GSPs) and their associated Application Service Providers (ASPs) are envisaged to provide innovative and convenient methods for taxpayers and other stakeholders to interact with the GST Systems, from registration of entities to uploading invoice details and filing returns, thus enabling easy adoption of GST.