The Goods and Service Tax system in India is launched on 01st July 2017. Since then it is a big challenge for the government to implement it on the grass root level. Every registered person under GST needs to communicate to the department through the internet. This includes taking registration, return filing, raising online queries etc. Hence, the government introduced the GST Suvidha Kendra system in India under Goods and Service Tax.
Who are GST Service Providers(GSP)
In order to facilitate taxpayers, the government invited other stakeholder/participants from IT background to communicate directly to the GST system on behalf of the taxpayer. This stakeholder or participant is called GST Service provider. These stakeholders include such as:
- Central and States tax authorities
- The Tax professionals
- Tax return preparers
- Chartered Accountants
- Advocates for Tax matters
- Service Tax practitioners
- Financial services providing companies like ERP companies
- Accounting Software Providers for tax
It is to note that GST service Provider is different from GST Practitioner.
What is GST Suvidha Kendra
GST Suvidha Kendra is an office of above GST Suvidha provider. Also, GST Suvidha Kendra is called as GST Suvidha Center. It should have a data center to provide services to its end user. Also, these Kendra may provide suvidha services customer care number to its clients to avail services.
The taxpayer needs to contact GST suvidha Kendra to avail the services they provide. This will be a chargeable service to the Taxpayer. GST Suvidha Kendra has to develop applications to interact with the GST system through the API’s provided by the GST Network.
What are the functions of GST Service Provider
The government expects that GST Suvidha provider shall provide below services to its taxpayer:
- Invoice data uploading (B2B and large value B2C)
- Uploading GSTR-1 (return containing supply data) based on the data provided by the taxpayer.
- To Download the data of inward supplies (receipts or purchases) in the form of Draft GSTR-2A from GST Portal.
- Reconciliation of purchases made and that data downloaded from the GST portal in form GSTR 2A.
- File GSTR-3B on behalf of Taxpayer
- Filing the return of other categories of taxpayers like casual taxpayer or composition taxpayers.
- Maintaining taxpayers individual business ledgers (sales ledger and purchase ledger) and other value-added service.
What is the eligibility criteria to opt for GST Service Provider
Following are some of the requirement to opt for GST Service Provider:
Types of Organizations
- A company registered in India under the Indian Companies Act 1956 or 2013.
An undertaking owned and managed by the Central / State Government (PSU)
- A partnership registered under the India Partnership Act 1932 or under the Limited Liability Partnership Act, 2008
An IT / ITES / BFSI company with capabilities like Paid up / Raised capital of at least Rs. 2crores.
- Average turnover of at least 5 Crores during the last 3 financial years etc.
Beside this there are technical requirements, documentation, sign a contract between GSTN and the GSP etc.
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