GOODS AND SERVICES TAX

INPUT SERVICE DISTRIBUTOR

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INPUT TAX CREDIT

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GST SUVIDHA PROVIDER

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GST Suvidha Provider (GSP) is considered as an enabler or authorised intermediary for businesses to
access GST portal services. It helps comply with the provisions of GST law through their GST Software
applications and APIs
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The GST System can be accessed by taxpayers through a Government to Business (G2B) portal.

However, 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.

GST Suvidha Provider (GSP) is hence an ecosystem of Service Providers created by the GSTN to
provide innovative solutions (Portal, Mobile App, Enriched API) either themselves or through its third
party partners for making tax filing more easy and convenient to tax payers.
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Who is a GST Suvidha Provider (GSP)?

GSP stands for GST Suvidha Provider. A GSP enables a GST taxpayer to comply with all the procedural
provisions of the GST law through its web platform. ClearTax, an online tax filing platform has been
granted the status of GSP. A GSP provides innovative methods or means of an effective interactive
platform for taxpayers to access GST portal services ranging from registration and invoicing to
completion of GST return filing.
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Three Modes of Interaction With GST portal

Filing directly on the GST portal

A GST taxpayer will usually access the website directly for availing various services offered on the
website such as registration, GST return filing, refund application, and other similar GST compliances.
However, for services such as GST return filing, a taxpayer may not be technically equipped to file
online. Hence, they may find it difficult to collate sales and purchase data from his ERP system or
accounting software in the required GSTN format. A lot of manual efforts may go into preparing the
GST returns. Hence, a GST Suvidha Provider is an indirect means yet an easy platform to access the
GST portal saving time and efforts. Under indirect means, there are two types of intermediaries between
the taxpayer and the GST portal.
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ASP who is not a GSP:

These entities provide the requisite third-party applications for GST compliance. They have user
interfaces via various modes such as desktop, mobile or any other interfaces for taxpayers just like any
other Application Service Provider (ASP). Such an application developer can connect with the GST
portal via a secure GST system Application Programming Interface (APIs) accessed with the help of
GST Suvidha Providers. The below diagram will show the two ways of how the taxpayers can access the
GST portal indirectly through an ASP who is Non-GSP:
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ASP who is also a GSP:

A government-approved application service provider is the most reliable mode of

completing GST compliances. They provide the application and are also authorised to
provide an interactive platform to access the GST portal. Such an ASP who is also a
GST Suvidha Provider can connect seamlessly with the GST portal and helps avoid; any
third-party dependency, thereby increasing the speed of processing of data. Also, an
ASP which has access to multiple GSPs will ensure higher uptime availability and
scalability for the user. The below diagram will show the two ways of how the taxpayers
can access the GST portal indirectly through an ASP who is also a GSP:
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Interaction of a taxpayer with the GST portal can, therefore, take place via either of the three routes
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Areas addressed by GST Suvidha Providers

1.Upload invoice data (B2B and large value B2C).

2.Upload GSTR-1 (return containing supply data), which will be created based on invoice
data and some other data provided by the taxpayer.
3.GSTR-2A download and reconciliation with purchase data accounted on ERP.
4.File GSTR-3B based on the GSTR-1 filed, purchase data on record and GSTR-2A
information available.
5.Similarly, there are other returns for other categories of taxpayers like casual taxpayer
or composition taxpayers.
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Benefits of being an ASP who is also a GSP

• Allows an end-to-end integration with any ERP system or accounting software so that data can be
fetched automatically.
• Improved and faster performance compared to any other ASP not being GST Suvidha Provider.
• The integration with the GSTN can allow a smooth flow of data between the application and the GST
portal avoiding any third-party dependency.
• A single login is needed to access different locations (GSTIN) instead of login and logout each time
from different locations.
• Better security ensured as all security standards are met and approved by GSTN.
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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.

• The prospective applicant for GSP will need to meet a pre-qualification criteria for GSPs.
• GSPs who meet the pre-qualification criteria will sign a contract with GSTN to become an authorised
GSP.
This draft contract has the following content:

• Definitions, responsibilities of GSPs and their legal obligations as well as liabilities.

• Technical architectural framework as to how GSPs shall integrate with GST System.
• Commercial terms and conditions along with SLAs to be met.
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E WAY BILL
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What is an eWay Bill?

Under GST, an Electronic Way bill is required for movement of goods. A registered person cannot
transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan)
without an e-way bill that is generated on ewaybillgst.gov.in.

Alternatively, Eway bill can also be generated or cancelled through SMS, Android App and by site-to-
site integration through API entering the correct GSTIN of parties. Validate the GSTIN with the help of
the GST search tool before using it. When an eway bill is generated, a unique Eway Bill Number (EBN)
is allocated and is available to the supplier, recipient, and the transporter.
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What are the components of an e-way bill?

E-Way bill is divided into two components i.e. Part A and Part B. The person required to issue eway bill
should fill in the following details of Part A:

Details of GSTIN of recipient,

• Place of delivery (PIN Code),
• Invoice or challan number and date,
• Value of goods,
• HSN code,
• Transport document number (Goods Receipt Number or Railway Receipt Number or Airway Bill
Number or Bill of Lading Number) and
• Reasons for transportation
• While as far as Part B is concerned, it comprises of the transporter details (for eg: Vehicle number)
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When Should eWay Bill be issued?

eWay bill will be generated when there is a movement of goods in a vehicle/ conveyance of value more
than Rs. 50,000 (either each Invoice or in aggregate of all invoices in a vehicle/conveyance) –

In relation to a ‘supply’
• For reasons other than a ‘supply’ ( say a return)
• Due to inward ‘supply’ from an unregistered person

For this purpose, a supply may be either of the following:

• A supply made for a consideration (payment) in the course of business
• A supply made for a consideration (payment) which may not be in the course of business
• A supply without consideration (without payment) In simpler terms, the term ‘supply’ usually means
a:
• Sale – sale of goods and payment made, Transfer – branch transfers for instance
• Barter/Exchange – where the payment is by goods instead of in money
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Therefore, eWay Bills must be generated on the common portal for all these types of movements. For
certain specified Goods, the eway bill needs to be generated mandatorily even if the value of the
consignment of Goods is less than Rs. 50,000:

• Inter-State movement of Goods by the Principal to the Job-worker by Principal/ registered Job-worker
• Inter-State Transport of Handicraft goods by a dealer exempted from GST registration
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Who should Generate an eWay Bill?

Registered Person – Eway bill must be generated when there is a movement of goods of more than Rs
50,000 in value to or from a registered person. A registered person or the transporter may choose to
generate and carry eway bill even if the value of goods is less than Rs 50,000.

Unregistered Persons – Unregistered persons are also required to generate e-Way Bill. However, where
a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the
compliances are met as if they were the supplier.

Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the
supplier has not generated an e-Way Bill but are not required to generate the Eway bill (as Form EWB-
01 or EWB-02) where all the consignments in the conveyance :
Individually (single Document**) is less than or equal to Rs 50,000 BUT
In Aggregate (all documents** put together) exceeds Rs 50,000
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Cases when eWay bill is Not Required

In the following cases it is not necessary to generate e-Way Bill:

• The mode of transport is non-motor vehicle

• Goods transported from Customs port, airport, air cargo complex or land customs station to Inland
Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
• Goods transported under Customs supervision or under customs seal
• Goods transported under Customs Bond from ICD to Customs port or from one custom station to
another.
• Transit cargo transported to or from Nepal or Bhutan
• Movement of goods caused by defence formation under Ministry of defence as a consignor or
consignee
• Empty Cargo containers are being transported
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• Consignor transporting goods to or from between place of business and a weighbridge for
weighment at a distance of 20 kms, accompanied by a Delivery challan.
• Goods being transported by rail where the Consignor of goods is the Central Government, State
Governments or a local authority.
• Goods specified as exempt from E-Way bill requirements in the respective State/Union
territory GST Rules.
• Transport of certain specified goods- Includes the list of exempt supply of goods, Annexure to
Rule 138(14), goods treated as no supply as per Schedule III, Certain schedule to Central tax
Rate notifications. (PDF of List of Goods).
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Time limit to generate e-way bill

Earlier there was no time limit set for generating e-way bills. However, there was a validity given
for every e-way bill, explained in the next section. However, starting 1st January 2025, you can
generate e-way bills on documents dated within 180 days. For example, documents dated earlier
than 5th July 2024 will be ineligible for e-way bill generation from 1st January 2025. The update
is as per a GSTN advisory dated 17th December 2024.
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Documents or Details required to generate eWay Bill

• Invoice/ Bill of Supply/ Challan related to the consignment of goods

• Transport by road – Transporter ID or Vehicle number
• Transport by rail, air, or ship – Transporter ID, Transport document number, and date on the document