GST Case Study (Compliance Management System)

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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. http://www.ricago.com/

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Presentation Transcript

Case study:

Case study Compliance management system

Gst ITC reconciliation:

Gst ITC reconciliation 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 organization’s reputation is at stake. GSTR-2A  is auto populated in GSTN portal where the user can view/download the list of all of the invoices from the various supplier’s during the month. 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.

Key METRICS:

Key METRICS 80% of enterprises can not generate proper Purchase Register from their ERP systems 30% 80% 15% 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 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 As per Revenue Department’s 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. KEY CHALLENGES

Retail Merchandise store:

Retail Merchandise store 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 women’s 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.

ITC CONSIDERATIONS:

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

Client success story:

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

Thank you:

clonect.sales@ricago.com www.ricago.com Thank you

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