- On March 17, 2020
- Automated Software, GRECS, GST Blog, GST Reconciliation, GST Updates, GSTR 2A, Input Tax credit, ITC Matching, ITC Reconciliation
The department of Revenue is monitoring the GST data meticulously with the help of data analytics and extensive use of technology. To detect and curb Input Tax Credit (ITC), authorities are keeping a constant eye on the returns filed by the business organisation. Tax Department is also using artificial intelligence for timely compliances. To have timely and accurate compliances, the Chief Finance Officers (CFOs) and Tax Heads of varied organisations need to understand the following.
Role of CFOs and Tax Heads is critical
Essentially, in this new GST regime, the role of CFO has undergone a sea-change and been imposed with significantly more responsibility of being true and correct in relation to tax reporting and compliances. As legislation imposes heavy corrective penalties in case of errors resulting in short payment of taxes or incorrect availing of ITC, the job of CFO has become more challenging.
Challenge of GST reconciliation
Ever-increasing regulatory requirements and with the vast volume of data CFO is getting it increasingly difficult, if not impossible, to manage whole work manually or with traditional spreadsheets. This reconciliation of the ITC data process requires:
- To find the mismatch in the data
- To find the missing entries in the returns filed by various
- To track the returns filed by the vendors.
- To get the timely alterations in the returns filed by the
- Manually editing or adding the data.
- To keep the records of ITC already claimed and pending
One of the recent studies has found that due to this tedious and time-consuming nature of the claim process, 40% of business houses are still grappling with GST compliance.
The only real solution here is the complete automation of the reconciliation process. This will not only eliminate all the above issues but will also enhance overall end-user experience and free up employees for more core responsibilities. With the adoption of advances technology such as direct import of data from the accounting software as well as GSTN portal and seamless integration with the returns filed by various vendors, the overall ITC matching process can shrink to a matter of 2 to 3 hours only. It will not only save the precious productive time but completely wipe off the fear of any future tax or interest liability.
To know more about GST automation solutions, you can contact at email@example.com