GSP means GSTN (Goods and Service Tax Network) Suvidha Provider which is considered to play a pivotal role in the roll out GST. It is also considered as the activator to the businesses for a paperless tax compliance regime and brings more ease in doing business.

GSP is a non- profit Private Company. Its main aim is to provide IT infrastructure and services to Central and State Governments, taxpayers and other stakeholders, thereby facilitating the implementation of the Goods and Service Tax. The GST system is going to have a G2B portal for taxpayers to access the GST systems.

Let’s have a look towards the various aspects of GSP:-

Main Modules under GST System

  • Registration of Tax Payer and Tax Consultant
  • Returns (GSTR1 upto GSTR12)
  • Payments
  • Ledger Maintenance
  • Miscellaneous

For Tax Professionals

  • Consolidated view of all clients
  • Ability to upload invoice data etc. from his dashboard
  • Get update on their taxpayers from GST system

GSTN Shareholding

The Central and State Government collectively holds 49% stake and rest 51% are with Private Players. Let’s have a look to its composition:

Name of Players %age holding
Union Government 24.5%
State Governments along with empowered

Group of State Finance ministers

24.5%
LIC Housing Financing 11
ICICI Bank 10
HDFN 10
HDFC Bank 10
NSE Strategic Investment Corporation 10

Who can become a GSP?

S.No. Organization Type Pre-qualification criteria Supporting documents
1. A company registered in India under the Indian Companies Act 1956 or 2013 meeting the pre-qualification criteria given in next column. An IT / ITES / BFSI company having IT capability with the following parameters: 1. Financial Strength:

a.       Paid up / Raised capital of at least Rs.

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b.      2 crores and b. Average turnover of at least 5 Crores during last 3 financial years (2014-15, 2015-16, 2016-17)

c.       For FY 2016-17, unaudited results, duly authenticated by the Company Secretary only, may be quoted, to be followed up by the audited and signed balance sheets. For earlier years copy of relevant page of audited balance sheet needs to be shared.

2. Demonstration of capabilities: As given in Table-1 below.

3. Technical Eligibility Criteria: As indicated in Table 2 below

1. Letter of Intent by CMD/MD expressing interest to become GSP. 2. Letter of authority, authorizing the signatory to sign documents on behalf of the organization along with the attested specimen signatures (both initials and full)

3. Extract of AOA and MOA mentioning area of operation pertaining to IT / ITES / BFSI

4. Certificate of incorporation (In case of Partnership firms Registered Partnership deed)

5. Copy of Service Tax Number / TIN / PAN

6. Board Resolution for making GSP Application 7. Certified copy of letter of commencement of business issued by Ministry of Corporate Affairs (MCA)/ (In case of Partnership Firms, Registration Certificate from Registrar of Firms)

2 An undertaking owned and managed by Central / State Government (PSU) OR

An Authority constituted under the Central / State Act/Special Purpose Organization constituted by Central/State govt

As above 1. Letter of Intent by Managing Director/Chief Managing Director of PSUs expressing interest to become a GSP

2. Letter of authority, authorizing the signatory to sign documents on behalf of the organization along with the attested specimen signatures (both initials and full)

3. Letter of establishment of PSU

3 Partnership registered under the India Partnership Act 1932 or under the Limited Liability Partnership Act, 2008 As above 1. Letter of Intent by the partners expressing interest to become GSP 2. Letter of authority, authorizing the signatory to sign documents on behalf of the organization along with the attested specimen signatures (both initials and full)

3.Registered Partnership deed. 4.Copy of Service Tax Number / TIN / PAN

Under Financial Strength, the unaudited results, shall be authenticated by the Company Secretary only. Another Role of Company Secretary in GST.

GSP ECO System

Author: C S Ekta Maheshwari is the Author of this article and is Company Secretary by profession. The Author can be reached at csektamaheshwari14@gmail.com

Disclaimer:

The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.

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