Application Service Provider (ASP) is role in GST

An ASP in the GST system will be acting as a connecting bridge between the ultimate tax payer and the GSP. An ASP will collect raw data from the core/end user and process it in a way that the raw data becomes useful information.

The ASP provides enriched APIs like bulk uploading of invoices or raw data in .csv/.xls format, visualization and analysis on provided data (e.g. via  dashboard), offers conversion of invoice data into various format, communicates with GST System via the GSP and offers value added services to the tax payer.

The contractual agreement of an ASP shall be with your organization as a taxpayer and scope of services mutually decided between the ASP and you. Further, it is recommended that the ASP follows the same communication nomenclature with GSP as that followed by the GSP with GST system.

Data Protection & Privacy

The ASP will be handling some of the most sensitive data of your organization. This data is about, whom do you sell to and where? What do you sell? How much do you sell and at what price? Well that’s not all. The ASP is also going to require similar information about your purchase. In short an ASP will have all the data required to establish the margins at which you are selling your whole range of products and services. 

Audit Features 

A good ASP platform will maintain the logs of all the data that it processed. It will allow you to audit the flow of the data from the point you upload it into the system till the calculation of the returns. Check the audit features that is available as a part of the ASP Platform.

Data Authentication

Data submitted to the ASP is used for filing your GST Returns. It  also ensure your  data is authentic,  separated  as well as secured in ASP, as any loss or disrupt in data will become a liability for the tax filing entity.  An ideal ASP solution should isolate your data from that of other entities.

Data Archiving & Retrieval

Next question you need to ask yourself is,  if the ASP offer you an effortless/efficient  way for Data Archiving and Retrieval  i.e.  how easy and adequate is the retrieval of data on ASP?

Application and Process Control

Filing tax return is the responsibility of the corporate officers of the company/organization. Thus, ASP should provide the full control of the process to the officer(within organization). This is crucial in context of India because all raised disputes  regarding  inconsistency is the esponsibility of the filer and not been able to file the dispute within the specified time will have material impact on the net tax liability.


Technology selection for GST compliance is the biggest challenge for any organization (big or small). They must poses the knowledge about which technology solution provider they should choose based on parameters such as 24x7 availability of platform, security of their data and high-level performance to upload large number of invoices a day. Organizations must recognize the value of the data they are sharing. Maintaining privacy, reliability and access control will come at a price. Lower cost and reliable solutions will come at the cost of data security. There ain't no such thing as a free lunch, careful evaluation of the ASP Strategy is therefore the need of the hour.

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