For the convenience of taxpayers, GSTN has come-up with an Offline Tool where data on invoices (business to business), exports, supplies to consumers etc., which are required to create GSTR-1 (Outward Supply Return), can be entered in an excel sheet in offline mode (without being connected to Internet). At desired interval, the tool can be run to upload all such data on the portal. Only while uploading the data on GST portal, Internet connectivity will be required. The Offline tool will be provided free of cost and taxpayers will be able to download it from the GST portal (www.gst.gov.in) from last week of June. GSTN will release the format of Excel in which businesses will start maintaining the data from 1st of July for using the free offline tool for uploading the invoice data and other return data.

Taxpayers using offline tool will not require services of any GSP. Similarly those having small number of business to business invoices, like retailers and small traders, can do the data entry on portal itself and they will also not require the services of GSPs.

200 Applications on GSTN Table

Background

The Goods and Services Tax constitutional amendment having been promulgated by the Govt of India, the rollout of the GST Bill will be a collective effort of the Central and State Governments, the tax payers and the IT platform provider i.e. GSTN, CBEC and State Tax Departments. Besides these main participants there are going to be other stakeholders e.g. Central and States tax authorities, RBI, the Banks, the tax professionals (tax return preparers, Chartered Accountants, Tax Advocates, STPs etc.), financial services providing companies like ERP companies and Tax Accounting Software Providers etc.

The GST System is going to have a G2B portal for taxpayers to access the GST Systems, however, that would not be the only way for interacting with the GST system as the taxpayer via his choice of third party applications, which will provide all user interfaces and convenience via desktop, mobile, other interfaces, will be able to interact with the GST system. The third party applications will connect with GST system via secure GST System APIs. All such applications are expected to be developed by third party service providers who have been given a generic name, GST Suvidha Provider or GSP. The GSPs 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. Thus there will be two sets of interactions, one between the App user and the GSP and the second between the GSP and the GST System. It is envisaged that App provider and GSP could be the same entity. Another version could where data in required format directly goes to GSP-GST Server. The diagram below gives the most generic case.

In the evolving environment of the new GST regime it is envisioned that the GST Suvidha Providers (GSP) concept is going to play a very important and strategic role. It is the endeavour of GSTN to build the GSP eco system, ensure its success by putting in place an open, transparent and participative framework for capable and motivated enterprises and entrepreneurs.

GST Compliance Requirement by the Taxpayer

The taxpayer under GST Regime will have to provide following information at regular intervals:

• Invoice data upload (B2B and large value B2C)
• Upload GSTR-1 (return containing supply data) which will be created based on invoice data and some other data provided by the taxpayer.
• Download data on inward supplies (receipts or purchase) in the form of Draft GSTR-2 from GST Portal created by the Portal based on GSTR-1 filed by corresponding suppliers.
• Do matching of purchases made and that downloaded from GST portal. Finalize the same based on his own purchase (inward supply data) and upload GSTR-2
• File GSTR-3 created by GST Portal based on GSTR-1 and 2 and other info and tax paid.
• Similarly there are other returns for other categories of taxpayers like casual taxpayer or composition taxpayers.

Concept

It is expected that the GSPs shall provide the tax payers with all services mentioned above in addition to maintaining their individual business ledgers (sales ledger and purchase ledger) and other value added services around the same. Another important service expected from GSPs is the automatic reconciliation of purchase made and entered in the purchase register and data downloaded in the form of GSTR-2 from the GST portal. In additional there will be sector-specific or trade specific needs which the GSPs are expected to fulfil. The conceptual diagram depicting the same is as given below.

While the GST System will have a G2B portal for taxpayers to access the GST System there will be a wide variety of tax payers (SME, Large Enterprise, Small retail vendor etc.) who will require different kind of facilities like converting their purchase/sales register data in GST compliant format, integration of their Accounting Packages/ERP with GST System. Similarly, the specific needs of an industry or trade could be met by GSP. In short, the GSP can help the taxpayers in GST compliance through their innovative solutions.

Design & Implementation Framework

Tax payer’s convenience will be a key in success of GST regime. The tax payer should have a choice to use third party applications which can provide varied interfaces on desktops, laptops and mobiles and can connect with GST System. The GSP developed apps will connect with the GST system via secure GST system APIs. Majority of GST system functionalities related to taxpayer’s GST compliance requirements shall be available to the GSP through APIs. GSPs may use GST APIs and enrich and enhance the tax payer’s experience. (The APIs of GST System are RESTful, json-based and stateless). GST System will not be available over the Internet for security reasons.

The production API end points can only be consumed via MPLS lines. All APIs will be accessed over HTTPS protocol. The benefits of API based integration are:

• Consumption across technologies and platforms (mobile, tablets, desktops, etc.) based on the individual requirements
• Automated upload and download of data
• Ability to adapt to changing taxation and other business rules and end user usage models.
• Integration with customer software (ERP, Accounting systems) that tax payers and others are already using for their day to day activities

The detail implementation framework can be perused on this website at http://www.gstn.org/ecosystem/pdf/GSP_Implementation_Framework.pdf

Selection and On-boarding of GSPs

Any prospective applicant for GSP will need to meet a pre-qualification criteria for GSPs. The pre-qualification criteria are detailed later in this document.

GSPs who meet the pre-qualification criteria will sign a contract with GSTN to become an authorised GSP.

On signing of the contract, GSPs will get a unique license key for accessing the GST system. GSPs will be authenticated using this license key (Client id + Client Secret) provided by GSTN. GSP will have a provision to generate multiple License keys as per its need.

Who Can Become a GSP?

The organisations and entities who are expected to sign up as GSPs are visualised to be as under:

• Registered companies in India in the IT / ITES / BFSI domain.

More details on pre-qualification are given at http://www.gstn.org/ecosystem/pdf/Eligibility_Criteria_for_GSPs.pdf

How to Become a GSP ?

GSPs will need to sign up a contract with GSTN. The draft of this contract is uploaded athttp://www.gstn.org/ecosystem/pdf/Agreement_GSP_legal_standard_draft.pdf

This draft contract has the following content:

1. Definitions, responsibilities of GSPs and their legal obligations as well as liabilities
2. Technical architectural framework as to how GSPs shall integrate with GST System
3. Commercial terms and conditions along with SLAs to be met
4. Pre – qualification criteria for GSPs.

Registration

Interested organisations may register at http://www.gstn.org/ecosystem/gsp_form by 15th Oct 2016 by providing details in the registration form. GSTN will first consider those organisation which fulfil pre-qualifications. After stabilization of the first batch of GSPs, more applicants(organisations) will be considered for GSP, out of those applicants who register themselves now.

Registration is free.

Source : Goods and Service Tax Network website GSTN.org

Free Education Guide on Goods & Service Tax (GST)

Q:1   Need for having GST Suvidha Providers?

The GST System is going to have a G2B portal for taxpayers to access the GST Systems, however, that would not be the only way for interacting with the GST system. GST system architecture is an API based platform and therefore taxpayer via his choice of third party applications, which will provide all user interfaces and convenience via desktop, mobile, other interfaces, will be able to interact with the GST system. The third party applications will connect to GST system via secure GST System APIs. All the functionalities of GST portal will be available through APIs. All such applications are expected to be developed by third party service providers who have been given a generic name, GST Suvidha Provider or GSP. The GSPs 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. Thus there will be two sets of interactions, one between the App user and the GSP and the second between the GSP and the GST System.

Q:2   What will be the role of GSTN in GSP eco-system?

GSTN will be the overall regulator and overseer of the API based system whereas, Infosys, the managed service provider (MSP) selected by GSTN to create GST Systems, will set up the requisite process enrolment, establishment of secure connectivity and assisting GSPs in smooth integration of APIs along with running operations of GSPs on behalf of GSTN.

Q:3   How will GSPs connect to GST Systems?

The prerequisite for GSPs to connect GST System is to setup a secure connection using MPLS/VPN over internet to GSTN data centers. Currently, GSTN envisages two data centres. GSPs will use GST authentication to enable their services and connect to the GST system through an MPLS/ VPN over internet connectivity after validation of license key. Only agencies contracted with GSTN as GSPs shall send authentication requests to the GST System. Following are some of the key principle for API framework adopted in design of GST System:

1. API layer would not be exposed to untrusted connection
2. All external users (including officials / taxpayers) will connect to GSTN portal through SSL Layer of authentication along with user id, single sign authentication / OTP etc.
3. All APIs level access either to department systems or to Servers of GSPs ( for users accessing the system through the GSPs) will be through HTTPS and through either of the below mode of connectivity:
   1. MPLS or
   2. VPN over internet
4. GSPs will sign up with GSTN and get the license key for accessing the system through either of the channels namely MPLS or VPN over internet.
5. GST system will have provision to support issuance of license key / sub licenses key including validation of the same in the GST System
6. All data transfer from / to GST system will happen through APIs
7. App signature authentication will be through the license key + time stamp + app version and other meta data
8. All the APIs would be stateless in nature.

Q:4   Who can become a GSP?

1. Registered in India as a company/firm
2. Engaged in development of software
3. No criteria attached to turnover or years of experience

For illustration, companies having ‘Accounting Software Products’ could be one group which could be interested as they are already providing services to taxpayers under VAT/Excise/Service Tax/Entertainment Tax etc. which are to be subsumed under GST.

New age Internet companies are expected to be the other major group who could be interested in joining the eco-system being developed for GST Rollout, not only for Apps for registration, upload of invoices, return filing but also for providing accounting systems to be used by micros and small enterprises who are not using any accounting software.

Industry association of group which want to provide this as a service to its members. For example ACMA/SIAM could expand their current EDI project named ‘AutoDX’ into a GSP. Large tax payers having large volume of invoices to be uploaded can also sign up with GSTN and get the license key for accessing the system through either of the channels namely MPLS or VPN over internet.

Q:5   How can one become a GSP?

1. Identify business/service delivery needs and select appropriate authentication types
2. Fill online application form (coming soon)
3. Send signed contract and supporting documents to GSTN. Contract document is under process of formulation and inputs of industry on contract are most welcome.
4. Ensure process and technology compliance as prescribed by GSTN
5. Obtain approvals from GSTN and sign contract with it
6. Develop services and start working as a GSP

Q:6   What will be the business model for GSP operation?

The GSPs will be free to adopt business models they chose to recover the cost of operations from their users and/or through advertisements. As far as the interaction between GSP and the GST System is concerned, the same will be free for the first year of operation and will become chargeable after that. The cost recovery from second year onwards will be based on per API call made to GST System and the same will be determined in an open and transparent manner by dividing cost of operation by total number of APIs over a period of time. It is pertinent to mention that GSTN is a not-for-profit company. The specific details for metering will be updated later when finalized.

Q:7   Can GSPs determine their billing plan independently?

Yes, this would be left entirely to the GSPs. GSTN does not intend to have any restrictions on this. To be competitive, GSPs anyway would have to be pragmatic in their pricing.

Q:8   What will be the SLAs for GSTN operationally to support GSPs?

The SLAs are yet to be defined. This is work in progress and would be finalized in the days to come. Inputs from industry on this would help prepare the draft.

Q:9   Will GSP be required to get the application certified from GSTN or its approved agency?

Since GSP provided applications will be used by taxpayers for exchanging information with GST Systems, they will be required to get certified from STQC or an agency approved by STQC at their own expense.

Q:10   What will be the SLAs from STQC/third party auditors to certify the GSP services?

The SLAs of STQC and its approved agencies are available in public domain. The same will be made available prior to the audit process so that applications can abide by the required standards during their development process.

Q:11   Will a taxpayer be allowed to be registered with multiple GSPs?

Yes, if the taxpayer desires so, it would be possible to choose a set of services from one GSP and the rest from other GSPs.

Q:12   For hosting GST specific application, will there be any condition on location of Data Centre?

1. GSP will be mandated to connect to the GST system directly through an MPLS or VPN connection. Hence GSPs connectivity will necessarily have to be from onshore i.e. from within India.
2. The GSP application, which will connect to GST system via VPN/MPLS line and access GST APIs, must be hosted within India.
3. The GSP is just a secured pass through mechanism for the tax payers data, hence it is of utmost importance that the data coming from GSP to GST system should be encrypted. Therefore, if there is an ASP (application Service Provider of tool e.g. accounting software) who is partnering with a GSP (ASP-GSP model), then ASP should send encrypted data to GSP, so that GSP cannot peek in to Tax Payer Data.

Q:13   How will Tax payers know the list of GSPs available to consume their services? Will GSTN have any strategy to help tax payers identify their GSPs?

The list of authorized GSPs and their services portfolio would be published on GST portal.

Q:14   What benefits would a Tax payer see to consume the GSP’s application, when GSTN provides the portal to perform all processes?

A GSP providing tax accounting software will have the advantage of already providing the tax payer with a vast majority of the taxation functionality. It will help the tax payer if the delta process of upload of the invoice/return and reconciliation of the same is also provided by the GSP. Whereas in case of GST portal, another set of exercise manually or otherwise will have to be done to upload the invoice data or the return. The interface and features exposed by GST portal will be uniform for all taxpayers and might be basic in form and design. On the other hand GSPs are expected to have richer interfaces and features required by specific group (large taxpayers with completely automated financial system, SME with semi-automated system and small size with no system) of taxpayers. Also, by sheer size the GST portal will not be as nimble as that provided by a GSP.

GSPs can come up with application to provide GST filing facility in existing software or develop end-to-end solution for SME and small taxpayer to manage their sale/purchase and GST filing e.g. an offline utility like spreadsheet, which taxpayer can fill their invoice details and then upload on GST portal for processing. Similarly, for Tax Consultants (TC), GSPs can provide dashboard to display list of his/her all clients and clicking on a particular client can give TC the snapshot of the actions/ pending actions by client.

GSPs can provide innovative/value added features, which would distinguish them with other GSPs in the market.

Q:15   Will there be APIs to update each record to identify capital goods/raw materials?

Yes, there will be bulk update APIs to update such information in auto-drafted purchase statement.

Q:16   Will GSTN generate a unique identification for each invoice line in GSTN system?

No, GSTN will not generate any new identification. The combination of Supplier’s GSTIN, Invoice no and Financial year with HSN/SAC Code will make each line unique.

Q:17   How will GSPs ensure that changes made in GST Rules get implemented in their system fast?

GSPs need to design the Applications in such a way that any change in policy can be pushed to the applications by GST System. Say for example, if the rate of a commodity or service gets changed, the GST system should be able to push this information and the new rate gets reflected in the applications.

Q:18   Is the list of APIs available?

The list of APIs along with full description of APIs is available at the following URL.

http://www.gstn.org/ecosystem/images/Eco-System%20for%20GST%20and%20GST%20Suvidha%20Providers.pdf

Q:19   Has GSTN set up sandbox for testing the API’s?

Yes, a sandbox has been setup at —-.—-.—–.—-

Q:20   What was done in First GSP Workshop?

We organized First GSP Workshop in Bengaluru on 29th Jan, 2016, where over 100 companies from private sector operating in different domains viz Software products development firms- Accounting & Payment solutions, Digital signature certificates/e-signatures providers and Innovative solutions providers (Start-ups/Known famous IT firms) for e-disconnected taxpayers.

The GSP concept, model and architecture were presented to full house audience and well appreciated by industry groups.

Q:21   What has been done so far since First GSP Workshop?

On-Boarding model and contract for GSPs is being drafted.

Q:22   What would be next Steps?

Once On-Boarding model and contract is finalized, it will be shared on the portal to for reference. 2^nd Workshop will be conducted soon with one focussed industry sector. Details will be shared once dates are finalized.