GST Case Study (Compliance Management System)

1
Case study

• Compliance management system

2
Gst ITC reconciliation
GSTR-2A is auto populated in GSTN portal where
the user can view/download the list of all of the
invoices from the various suppliers during the
month.

• GST Reconciliation is the process of reconciling
  Purchase register GSTR- 2A data and is required
  to correct the mismatches between the details of
  invoices captured in GSTR-2A and the details
  recorded in purchase register ensure that Input
  Tax Credit (ITC) can be availed.
• In the process of reconciliation mismatches
  arises due to various errors like invoice data,
  invoice/tax value, item details, place of supply,
  missing invoices etc.
• Mismatch between GSTR-2A and the details recorded
  in purchase register can impact the cash-flow and
  input tax credit of an organization with the
  organizations reputation is at stake.

PURCHASE REGISTER is the internal register
maintained by the accounts team through an ERP or
manually which will capture all the inward
supplies details and it is essential to file the
appropriate returns.
3
Key METRICS
KEY CHALLENGES

• Extraction and validation of PR in format
  comparable to GSTR2A
• Download of GSTR2A for multiple GSTINs and months
• Differences in the Data of Enterprise Vendor
  Accounts
• Tracking/Trends Summaries, and Reports on ongoing
  basis
• Vendor Follow-up for the mismatches

30
80
15
80 of enterprises can not generate proper
Purchase Register from their ERP systems
30 of GSTR-2A data is not present in PR which
implies the gaps in AP process.
Only 15-20 matches are achieved when they run
their GST reconciliation
As per Revenue Departments analysis in March
2018, 34 of businesses paid Rs. 34,400 Cr less
tax between July - December 2017 while filing
initial summary return (GSTR-3B). GST officers
are sending scrutiny notices to companies where
tax payment did not match the final sales return.
4
RetailMerchandisestore

• Client is a renowned merchandise retailer.
  Established in 1998 and now it is one of India's
  largest and fastest growing chains of retail
  stores.
• The company has established 125 stores measuring
  8,000-34,000 sqft in floor space across 70
  cities.
• Offers a predominantly exclusive brands model
  across womens wear, menswear, kids wear,
  footwear, lingerie, cosmetics, perfumes and
  handbags, household furniture and accessories.
• Headquartered in Mumbai but with pan-India
  operations.
• It has a revenue of more than 1900Cr for the
  financial year 2017.

5
ITC CONSIDERATIONS
Vendor Reconciliation
Stock Transfer Reconciliation
Inward supplies (purchases) from multiple vendors
To-and-fro moment of goods between Distribution
Center (DC) and Store
6
Client success story
KEY CHALLENGES SOLUTION BY ricagoGST
Client has issues in managing the large data volumes (invoices) for multiple GSTINs ricago with its AI/ML based technology assisted the client in managing the data with fast, accurate, reliable and deep categorization.
Issues in generating and consolidating the PR of vendor purchases stock transfer and it is consuming maximum bandwidth of the accounts team ricago provided consultancy to automate generate clean PR from their ERP
Client is facing challenges in generating GSTN based and consolidated reports. Impactful dashboards and reports assisted the client in saving the manual effort and the time.
Identifying Compiling the Input Tax Credit across multiple vendors and stock transfer Consolidated and individual reconciliation reports for both vendors stock transfer
Challenge in managing the updates in data for further reconciliation process. ricago provided customized features like edit team assignment to track manage the data for further reconciliation
7
Thank you

• clonect.sales_at_ricago.com

• www.ricago.com