For Business Enterprise

Easy mitigation of GST input credit Reversal risks

  • Overview

    As part of statutory compliance, Business enterprises have to report their tax liability & input tax credit being availed (under GSTR3B Returns).
    The input tax credit is derived based on vendors filing returns in time (GSTR2B status)
    Moving forward, it is not enough for the vendors to be filing returns in time, but the vendors must also discharge their responsibility to make GST payments to the government.
    As per the recent Union Budget 2022-23 provisions, input tax credit availed earlier by the buyer have to be reversed with interests as applicable if vendors do not fulfil their payment liability.
    Reconciliation of input tax credit based on GSTR2B is already a challenging process. Over and above this, tracking and following up for vendors’ GSTR3B status to minimise the reversals is going to be a severe challenge to every business enterprise.

    The budgetary provision is expected to come into effect soon as and when the GST Notification is released by CBIC.
    Innoval has come out with an innovative application that would help the business community to address the above-mentioned risk.

  • Features

    • The application helps to:
      • Identify the risk of restricted-credit (losing eligible input credit from current month because of vendor not meeting the newly-proposed criteria)
      • identify the risk of reversals as on date (ITC availed in earlier months for which the corresponding vendors are yet to file their GSTR3B
    • This information is presented in an insightful way
      • For the CXOs to get the overall picture and initiate next steps
      • For the tax managers to identify non-compliant vendors and the extent of ITC-risks against each vendor
      • For the business team to follow-up with vendors before it is too late
    • This application can be used in conjunction with other tools (e.g.: OptiGST by InnoVaL) to:
      • Maximise input tax credit
      • Minimise the stretch on working capital / interest-costs
  • Benefits

    • A solution powered by the SAP Business Technology platform
    • Seamless live data fetch from SAP ERP or S/4HANA system via OData service
    • Interactive and user-friendly interface based on SAP UI5
    • Responsive UI allows accessing the app from a mobile device or browser
    • Multi-level drill down – from business place level to vendor level summary to month-wise vendor info, and finally to a transaction
    • Provision to upload the data via excel, for non-OptiGST and non-SAP customers