GST provides tax and tech consultants a platform worth Rs 20,000 crore

Goods and services tax (GST), the tax reform that India is going to implement from July 1 onwards, will be providing business worth Rs 20000 crore to GST service providers (GSP), entities that will help businesses register, upload electronic invoices and file on the technology platform.

These GSPs are generally tax and tech consultants, who grabbed the opportunity the tax overhaul offered, in order to increase their exposure and revenues.

Other than GSPs, ASPs or application service providers have also come in light because of GST, which use sales and purchase data from taxpayers and convert it into GST returns for filing online.

As per industry analysts, SAP and Oracle, the big players in the ERP business, may rake in revenues worth at least $1 billion (Rs 6,500 crore) in the coming two years, thanks to GST.

Similarly, the newly set up Ginesys would expect a turnover of around Rs 100 crore in three years, said co-founder Ashish Mittal.

To meet the demands, companies have also hired a large number of employees. While SAP and its partners have around 500-600 people that work on implementing ERP solutions, business filing, supply chain and the app for filing returns, Cleartax has strengthened its workforce by around 400 people in the last one year.