GSPs put up brave face amidst roll-out uncertainties

GST Suvidha Providers (GSPs) are unlikely to be ready by July 1

GST Suvidha Providers (GSPs), the service providers who have the mandate to facilitate tax payers with registration, upload invoices and file returns under the new indirect tax regime, are unlikely to be ready with full suite of GST-ready packages and solutions by July 1, the date government plans to roll out GST across the country. The delay on their part is largely due to non-availability of full set of application programming interface (APIs), the essential technical specifications needed for developing GST-enabled software. According to industry estimates, the GST Network (GSTN), the IT backbone for the tax system, is yet to release 30-40 per cent of the APIs. Once the APIs are released to the service provider, applications are developed around these according to client specifications, then tested and implemented across IT systems.

 
“It typically takes four to five weeks to customise, test and implement a solution for a client once the full technical configurations are known,” says Arun Gupta, a chartered accountant and tax consultant, who has been advising several small and medium enterprises on their GST-readiness. Gupta estimates that around 60 per cent of SMEs are yet to start the transitional process to the new indirect tax regime. IT industry players noted that the GSTN could release the APIs only after the bulk of final GST rules got the go-ahead from the GST Council in its June 3rd meeting.
 

The GSPs and Application Service Providers (ASPs) (those who develop the business software), however, are putting up a brave face. “I am sure GSTN has Plan B or Plan C in place,” says Piyush Kumar, CEO, Taxmann Technologies, one of the 34-odd registered GSPs. Some GSPs concede that without the full-spec GST solution, its vendors and re-sellers are not able to install the software with their clients.
 

Some GSPs are still batting for additional time for implementation. “More time would help in getting awareness of the recently finalised rules down to the last mile systematically so that businesses can transition more smoothly,” says Tejas Goenka, executive director, Tally Solutions. July is a rushed deadline whereas September would be more comfortable for everyone involved, he adds.

 
Some GSP players indicate that the broad objective of the government seems to ensure that the GST portal is ready by July 1 deadline to take the load of registration, filing of invoice and return. Following a phased approach, “the linking of the GSTN to GSPs may be pushed back by few weeks,” added head of one of the GSPs.