Goods and Services Tax (GST) is an indirect tax which was introduced in India on 1 July 2017 and was applicable throughout India which replaced multiple cascading taxes levied by the central and state governments. It was introduced as The Constitution (One Hundred and First Amendment) Act 2017, following the passage of Constitution 122nd Amendment Bill. The GST is governed by a GST Council and its Chairman is the Finance Minister of India. Under GST, Goods and Services are taxed at the following rates, 0%, 5%, 12%,18% and 28%. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition, a Cess of 15% or other rates on top of 28% GST applies to few items like aerated drinks, luxury cars, and tobacco products.
In the new process of submitting the returns to the Government, Taxpayers need to furnish the returns on Monthly/ Quarterly based on the type under which they are registered to GST. In order to make it simple and convenient, the API’s of the GST system will be exposed to ‘Business’ and ‘Accounting Firms’ through GST Suvidha Providers (GST-GSP). This GSP’s will intake the data from the ASP’s and submit to GSTN.
As per the new GST law, every Registered taxable individual/organization is required to submit “Details of Outward Supplies” in GSTR-1,“ Details of Inward Supplies” in GSTR-2, File Returns in GSTR 3, to the GSTN for each and every month.
The Organization or an Individual may find the process of submitting their returns to the Government very complex. As in the current process, there is no relation between the buyer and seller, no mechanism to reconcile the data submitted by seller and buyer and all the data was being submitted manually, which had no process in tracking the submitted data. As the Government maintains certain Rules and Standards to accept the data from the common portal, there is no robust mechanism for the ‘Business’ and ‘Accounting Firms’ to submit their returns to GST.
Incresol has come up with an ASP solution, which can intake data related to sales and purchases.
ASP is an abbreviation for Application Service Provider, which will act as a bridge between the Taxpayers and the GSPs.
ASP provides GST filing facility for the existing software, or, with the help of ASP partners, they can develop an end-to-end solution with which Corporate, Consultants and Taxpayers can manage their sale/purchase and GST filing. For example, an offline utility-like spreadsheet, CSV File taxpayers could fill out their invoice details and then upload it on the GST portal for processing with the help of ASPTAX application. Similarly, for tax consultants (TC), ASPs can provide a dashboard that displays a list of all his/her clients. Clicking on a client would give the TC a snapshot of the client’s actions/ pending actions.