A licence will give ecommerce like Flipkart a direct access to the GST Network (GSTN). Many companies are eyeing the GSP licence as the overall opportunity entitles uploading of over 2 billion invoices every month. "More small and medium businesses will be encouraged to sell on marketplaces like Flipkart post-GST if it can simplify their taxation for products across India. These platforms can use the GSP licence to acquire more sellers," said Nikhil Kumar, head of the developer ecosystem at India Stack.

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Ecommerce Firms like FlipkartSeek to Be A GST
Suvidha Provider
Flipkart has applied for a licence to become a GST Suvidha Provider (GSP), a strategic move
that may expand its seller base, according to a source aware of the development.
#DigitalErra Thought Corner
A licence will give ecommerce like Flipkart a direct access to the GST Network (GSTN). Many
companies are eyeing the GSP licence as the overall opportunity entitles uploading of over 2
billion invoices every month.
"More small and medium businesses will be encouraged to sell on marketplaces like Flipkart
post-GST if it can simplify their taxation for products across India. These platforms can use the
GSP licence to acquire more sellers," said Nikhil Kumar, head of the developer ecosystem at
India Stack.
The move will also help the etailer process invoices in-house, rather than outsource and control
costs associated with tax collection at source.
In the second phase by GSTN -the nodal agency has already shortlisted 34 GSPs -including
Tally, EY and Reliance Corporate IT Park, a Reliance Industries subsidiary -in the first phase
amongst nearly 200 applications received from different companies.
What is GSP

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The government has setup large technology platform called GSTN (GST Network) which will
store all data pertaining to GST (including invoices and returns) and created multiple gates to
this infrastructure through GSP (GST Suvidha Provider) who will carry taxpayer data to GSTN
servers.
A GSP provides technology solutions for taxpayers and other stakeholders to connect to GST
systems for compliance -from registration of the entity to uploading of invoice details and filing
returns.
More on GSP
Several startups such as ClearTax, Juspay and LegalRaasta decided to apply for GSP licences
after GSTN lowered eligibility criteria in terms of paid-up capital and turnover in the second
phase.
Sudhir Singh, a policy expert at software products think tank iSPIRT, said, "Many GSPs are
looking to become providers of application program interface (APIs) for other application
service providers (ASPs), while some are looking to be captive GSPs, developing solutions for
their own processes and partners. Flipkart could become a captive GSP, building solution for its
merchants and partners."
The final list of GSPs will be out after a demonstration of GST solutions by the shortlisted
companies. Some of the other shortlisted GSPs include Delloite and Tata Consultancy Services.
Up till now, technology has played a minimal, but crucial role in ensuring simplified tax
compliance across varied systems and processes. But, post-GST implementation, the use of
technology will increase extensively. Everything, from invoice upload, mismatch reconciliation
to return filing will be done online. Therefore, it is extremely important that the enterprises
utilize an application that is robust, efficient and secure.
The GSPs are mandated to provide innovative and convenient ways to taxpayers and other
stakeholders while interacting with GST Systems, from registration of entity to uploading of
invoice details to filing of returns.