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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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    1. Manual monthly reconciliation of PAN India purchase register (PR) vs GSTN GSTR2B for 10,000+ invoices across multiple states
    2. Loss of working capital due to GST input credit disallowance in case of non-compliance by vendor
    3. GST Input tax credit disallowance in respect of the invoices/debit notes not matched with GSTR-2B
    4. Non availability of report containing near/probable matches for unmatched items (viz clerical/posting errors)
    5. 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?

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

    Outcomes

    1. Improved governance due to GST reconciliation status updated in ERP for each purchase document, thereby enabling business in 2B based ITC claim
    2. Efficient working capital management by non release of payment to non-compliant vendors (i.e. purchase invoices/debit notes not matched with GSTR2B)
    1. 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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