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      Tax Automation case study

      Automated linking of vendor payments to GSTR 2B reconciliation
      Improvement Success Planning Ideas Research

       Challenges of tax/finance function

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      • Manual monthly reconciliation of PAN India purchase register (PR) vs GSTN GSTR2B for 10,000+ invoices across multiple states
      • Loss of working capital due to GST input credit disallowance in case of non-compliance by vendor
      • GST Input tax credit disallowance in respect of the invoices/debit notes not matched with GSTR-2B
      • Non availability of report containing near/probable matches for unmatched items (viz clerical/posting errors)
      • Lack of control over reconciliation status due to decentralised/multistate purchase reconciliation activity and non availability of dashboards

      How our customised ERP automation addressed the challenges?

      • Automated daily extraction and push of PAN India purchase transactions from ERP to Cloud based GST Compliance Platform for 2B reconciliation
      • Regular and fuzzy logics based 2B reconciliation results for each purchase transaction updated in ERP
      • Automated vendor payment hold/release in ERP basis the reconciliation report from GST compliance platform (viz Matched-Release Payment, Unmatched-Hold)
      • GST validations applied to purchase transactions before 2B reconciliation to get meaningful results (e.g. invalid supplier GSTN, etc.).

      Outcomes

      • Improved governance due to GST reconciliation status updated in ERP for each purchase document, thereby enabling business in 2B based ITC claim
      • Efficient working capital management by non release of payment to non-compliant vendors (i.e. purchase invoices/debit notes not matched with GSTR2B)
      • PAN India purchase dashboards with 2B reconciliation result status updated for each purchase document within ERP for multistate operations.

      Key Contacts

      Sunil Badala
      Sunil Badala

      Partner, Head of Tax

      KPMG in India

      Ajay Mehra
      Ajay Mehra

      Non-Executive Chairman

      KPMG in India

      Rahul Kashikar
      Rahul Kashikar

      Partner, Head - Tax Technology and Transformation I Partner - Corporate International Tax

      KPMG in India

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