GSP and ASP model of GSTN is injustice with startups and small businesses
GSP or GST Suvidha Providers are companies appointed by GSTN which can have access to GSTN server through APIs.
It sounds good.
But, the conditions to become a GSP are so strict and one sided that startups and small businesses can never become a GSP.
Further ASP are application providers, for example a billing software provider is an ASP. ASP are appointed by GSP.
ASP are charged for access to GSTN through GSPs. The pricing is competitive but still costly.
Startups cannot become GSP
The conditions put by GSTN regarding paid capital and turnover restricts startups to become a GSP.
I don't think investment or turnover makes any difference where coding talent is considered. Startups have better coders than established companies.
You can compare programmers of startups and big companies, programmers from startups will perform better.
GSTN should give it a thought, I am writing this article because I have witnesses something that has totally destroyed reputation of this website.
I applied for ASP with one of GSP. Got ASP credential and implemented application to check or search GST number details, luckily I did not launch E-way bill APIs. Though these are 50% done.
From last 48 hours, servers of GSP are not responding.
Now GSTN should answer who is responsible for this downtime?
Being a well invested company with good turnover is not able to restore its servers from past 48 hours. Give a chance to any startup or forget about this GSP concept, why ASP are not given direct control?
There are many startups launched by extra ordinary talents who wants to take benefit of GST APIs but cannot. In India 95% software engineers are not employable. 90% software engineers cannot code even a simple website (based on my own experience).
So we are stuck between extreme situation, one side are those who have no idea of how to code and sitting on benches with GSP and others who can code but are not able to benefit from GSP APIs.
GSP are not charged, ASP are charged
GSP have to invest only in servers and nothing else.
They are not required to pay anything to GSTN. GSTN is a non profit organisation (recently decision is taken to make it public from private organisation).
We know how much servers cost, at least not 2 crores. None of GSP are going to build a data center for GSP business.
They hire servers located in India. Any startups can do that. In fact KnowyourGST.com is also hosted in a server located in India.
The fee I pay for access to APIs through GSP is huge when compared with revenue potential.
Why ASP need to pay such high fee to GSP, when GSP do not have to pay anything to GSTN?
If GSTN is giving access to GSP for free, why GSP should make profit from further access to ASP.
Again it comes to why ASP are not given direct access? What security concerns GSTN has?
Security is not a concern
If GSTN can come with a logic to explain, what difference it makes whether APIs are accessed through GSP or directly by ASP, I can delete this article.
If data is main concern, ASP have more access to user data than GSP.
In fact data lies on ASP applications.
GSTN which is backbone of GST technical stuffs, must give a thought to it or explain this GSP, ASP model.
Why we need a middleman without any value addition?
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