DigiGST® - an integrated GSP-ASP solution
Goods and Services Tax (GST) rollout in India from 1 July 2017, marks the beginning of a new journey leading to an incredible transformation and higher transparency. It requires greater integration of tax domain knowledge and technology, as GST is complex and full of sector specific nuances.
EY is an approved GST Suvidha Provider (GSP) by Goods and Service Tax Network (GSTN). Only GSTN approved GSPs are authorised to connect to GSTN using the published APIs. EY as a GSP will provide intelligent IT infrastructure for GST compliance.
EY Application Service Provider (ASP) will deliver GST compliance related services to taxpayers by ensuring swift processing of transaction data, efficient reconciliation and appropriate and timely credits.
The GST compliance challenge
- CFO– How do I ensure robust compliance and governance while internal and external systems stabilize?
- CTO – How will my reporting data integrate with the GSPs and ASPs? How will data security be ensured?
- Tax head – How will I ensure and manage GST compliance for my organization and our ecosystem?
Key issues faced by businesses today
- Changes are tax driven but affects the entire business – lack of readiness or compliance failures may result in business failures
- Paradigm shift from paper and offline based reporting to completely online and digital
- Company and government tax systems in a continuous dialogue, not just one time filing – requires new approach
- High degree of dependency on accuracy and efficiency not just for incumbent company but for the entire ecosystem in which it operates
- GST rules released are vast and complex to navigate initially
- Management and tax team bandwidth constraints - Initial set up for compliance will take significant time and effort
- Technical complexity of formats and filing protocols
- Cost of compliance could go up significantly, unless managed carefully
- Need for compliance assurance while internal and external systems stabilise
- Challenging for companies to automate, scale and comply in a very short span of time - this goes beyond internal compliance readiness but reporting compliance readiness as well
- Additional non-core technology management demands on the business
- Additional security and data access control fears – for all companies, but especially for listed companies
- Lack of flexibility and agility in systems to changes and updates down the line will put further pressure on all the above
The DigiGST® offering hosted on a secure cloud is a single point solution for GST compliance
- Market leader in tax with experience in managing the largest tax transformation projects in India
- Leading GST practice in India with the largest pool of Indirect Tax professionals spread across 12 cities
- Cross-sector experience and credentials in GST implementation
- Trusted brand with advanced digital capabilities and proven IT expertise
- ISO 27001 certified Security Operations Centers (SOCs) in India for constant monitoring and control of data security
Frequently Asked Questions
What is the impact of GST compliance on businesses as a whole?
- It requires a new approach where companies and government tax systems are in a continuous dialogue, not just one time filing
- Changes are tax driven but affects the entire business – lack of readiness or compliance gaps may result in business failures
- Paradigm shift in compliance, leading to
- Electronic reporting of all compliance
- Two way data flow with constant dialogue with the GST Network
What are some of the key challenges that the taxpayers will experience?
Key challenges include
- Quality of data
- Addressing errors and reconciliation of returns
- Synchronization with Goods and Services Tax Network (GSTN)
- Timely and appropriate credits for managing impact on working capital
What are the GST compliance challenges faced by the key decision makers in the organisation?
- CFO: Need to ensure total compliance while internal and external systems stabilise. How does one monitor system performance and build in efficient controls?
- CTO: Don’t know what information will flow out of the system. How will data security be ensured without a major overhaul of the existing IT systems?
- Tax head: How does one ensure that not only the organisation but the complete business eco-system including vendors and distributors are GST compliant?
What are GSPs and how will they help in effective compliance of GST?
- The GST Suvidha Providers or GSPs are licensed and authorised by the Goods and Services Tax Network (GSTN) of the Government to connect to the GSTN using the published APIs
- GSP’s will facilitate taxpayers in uploading securely GST returns in a prescribed format
- GSPs can customize products that address the compliance needs of different segment of users
Who are ASPs and what will be their role?
- ASPs are Application Service Providers
- ASP functionality will be to prepare monthly and annual GST returns basis taxpayer data, enable reconciliation of returns for appropriate and timely credits
- ASP functionality will require, domain and sector knowledge to interpret nuances in GST law and rules
- ASP will file returns for taxpayers through authorised GSPs
What is the objective of using a GSP-ASP?
- Primary objective of ASP-GSP is to ensure compliance and governance under the GST regime, which will require deep domain knowledge and technology enablement.