160 firms apply to become GST Suvidha Providers

The GST Network, the company providing IT backbone for GST rollout, has received as many as 160 applications from firms that have evinced interest in acting as GST Suvidha Providers.

The GSTN in December last year had named 34 firms, including Tata Consultancy Services, Deloitte Touche, EY and Tally Solutions, to act as GST Suvidha Providers (GSPs).

The GSPs are mandated to provide convenient ways to taxpayers and other stakeholders in interacting with GST systems, from registration of entity to uploading of invoice details to filing of returns under the new regime, which is set to kick in from July 1.

"We have got 160 applications, we are going through all the documents that they have provided. After that, we will be inviting them for demo... to see the solution they have... whether they have the technical capability to do it or not," said Prakash Kumar, CEO, GSTN, told reporters on the sidelines of an HP-KPMG event.

Asked about the timeline for selection of the GSPs in the upcoming round, he said it will take some time, as the priority now is to provide a stable IT backbone when GST is implemented.

Out of the 78.6 lakh existing taxpayers, over 60.5 lakh have already migrated to the GST network. Enrolment will reopen on June 1-15, he added.

According to Kumar, the GST Network is on track for providing the required infrastructure for the launch from July 1.

The GSPs will also maintain taxpayers' individual business ledgers -- sales and purchase ledger -- and other value-added services around the same.

Touted as the biggest tax reform since Independence, the GST will unify 16 different taxes and transform India into a single market.

Companies will now have to rejig their IT strategy to comply with the tax filing, refund and return norms to comply with the GST regime.