ASP vs GSP in the World of GST Compliance: Which Route Should Your Business Take?

In the context of indirect taxes in India, particularly under the Goods and Services Tax (GST), Application Service Provider i.e. ASP and GST Suvidha Provider i.e. GSP refer to technology providers that enable GST Compliance for enterprises. 

Let us understand the two before we explore what routes should enterprises take. 

A GST Suvidha Provider is an authorised intermediary, appointed by GSTN (Goods and Services Network), that provides a secure and efficient platform for businesses and third-party applications to access GST services.

• It acts as a safe gateway to the Goods and Services Tax Network

• Offers APIs to ASPs or directly to large taxpayers - the enterprises 

• Ensures secure transmission of data to and from GSTN (e.g., for return filing, e-invoicing).

Today, a lot of large IT, Tax, and FinTechs with robust infrastructure and capabilities have become GSPs, where they typically enter into agreements with the GSTN to ensure security protocols.

Application Service Providers, on the other hand, offer applications directly to the end user. They assist taxpayers, such as enterprises, in preparing and managing GST filings. These solutions are used to generate, verify, and convert invoices/data into suitable formats supported by the GSTN. 

• An ASP collects raw invoice/transaction data from businesses

• Does data enrichment, validation, reconciliation, and return preparation

• Handover this data to GSTN via a GSP. 

Remember, ASP cannot directly interact with the GSTN, unless it is an authorised GSP. In India, small businesses, large corporates, accountants, tax consultants and ERP users use GSP as a front-end tool for GST compliance.

Summing up the Key Differences

Large Enterprises in FMCG, Manufacturing, Pharma, Auto sectors prefer a combination of ASP + GSP from a single solution provider, as this: 

• Simplifies their GST Compliance

• Ensures data security

• Offers end-to-end integration

On the other hand, MSMEs and Mid-Sized Businesses prefer standalone ASPs with plug-and-play functionality. Some of the popular tools are Zoho GST, Cleartax, Busy, Tally (with ASP integration). They usually rely on GSPs, indirectly through their ASPs to save costs and ensure ease of use.

In India, GSP (GST Suvidha Provider) is the backbone of GST compliance infrastructure, especially for enterprises using ASPs to interact with the GSTN. 

Vayana is the Largest GSP in India, addressing 9 Bn API Calls, serving 300,000 MSMEs. In fact, A large FMCG company uses SAP integrated with Vayana GSP. When GSTN API access slows down near filing deadlines, Vayana ensures stable connectivity via load-balanced GSP infrastructure. ASP layer continuously reconciles e-invoices and pre-validates filings, preventing last-minute rejections. Business Continuity is maintained even during high-load periods.

Why should enterprises choose a GSP like Vayana?

• SAP-Certified GSP (S/4HANA DRC enabled)

• Zero Downtime Infra – 9 Bn+ GSP API calls served

• 2Mn+ GSTN Calls Daily 

• 100Mn+ Monthly API Transactions 

Let us delve into some ASP–GSP use cases and understand how they solve for business continuity. 

Under India's GST framework, ASP–GSP are critical for enterprises aiming to avoid compliance disruptions, ensure seamless operations, and adapt to the ever-evolving regulatory changes. 

Real-Time GST Return Filing – Essential for FMCG and Pharma

Vayana’s GST Return Filing solutions automate the entire process for large enterprises in sectors such as FMCG and pharmaceuticals. Using Vayana's APIs, businesses can automate the extraction of GST data from their internal systems (e.g., SAP or Oracle), validate it, and file it directly with the GSTN. This integration ensures timely filings, reducing the risk of penalties, late fees, and interest for non-compliance.

Auto-Reconciliation (GSTR-2B vs Books) – Key for Automotive & Engineering

The auto-reconciliation process from Vayana is particularly useful for industries such as automotive and engineering, where businesses deal with numerous transactions and input tax credits (ITC). Vayana’s solution matches data between GSTR-2B and internal records, ensuring that businesses don’t lose out on legitimate ITC claims. It simplifies the audit process by identifying discrepancies early and offering a seamless reconciliation experience.

E-Way Bill Generation & PDF Download – Critical for Logistics & Distribution

For industries like logistics and distribution, where the movement of goods is frequent and time-sensitive, Vayana’s E-Way Bill generation API offers a seamless solution. Vayana integrates with existing ERP systems to automatically generate e-way bills in real-time, ensuring that businesses stay compliant with GST regulations. Additionally, the PDF download feature allows users to conveniently download and print the generated e-way bills for physical inspection or internal record-keeping. This not only prevents delays but also helps avoid penalties for non-compliance during transit, ensuring that goods are shipped smoothly, legally, and with all the necessary documentation readily available.

Dual IRP – Enhancing Reliability for Manufacturing

For manufacturers, especially those dealing with high-volume transactions and complex supply chains, Vayana offers Dual IRP (Invoice Registration Portal) functionality. This feature ensures redundancy and higher reliability by routing e-way bills through two separate IRPs. If one IRP faces downtime, the other continues to handle e-way bill generation, providing uninterrupted service. This dual approach ensures business continuity and minimises the risk of disruptions during critical operational periods, making it an essential solution for manufacturers that require consistent GST Compliance without the risk of downtime.

GSTR Data Download Service & Historical Access – Essential for Audit and Compliance Reporting

Vayana’s GSTR Data Download Service allows businesses to easily access and download historical GST return data directly from the GSTN portal. This service is particularly valuable for businesses in taxation, audit, and compliance departments that need to review past filings, reconcile discrepancies, or prepare for audits. Vayana’s service ensures that businesses can quickly retrieve GSTR-1, GSTR-3B, and other GST returns in a user-friendly format, without the need for complex manual extraction. This added service ensures easy access to accurate data, maintains compliance, and supports regulatory requirements efficiently. Additionally, the historical data access feature helps businesses stay organised, enabling easy audit trail creation and faster resolution of any issues or discrepancies.

The Trend Ahead? 

Enterprises will continue to opt for “a one-stop GST platform” where they get: 

• Easy ERP integration with their systems 

• An application layer from the ASP

• A secure gateway to the GSTN via GSP 

• E-invoicing + e-way bill + return filing – all in one place 

• Reconciliation + analytics dashboards for CFOs and Taxation Heads