A Complete Automated Solution for GST Return Filing for a Retail Giant

CASE STUDY

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BUSINESS SCENARIO

The onset of GST required all the organisations with multiple branches across the country to build robust tax filing systems so that returns get filed in timely and accurate manner with ease. Especially, reconciliation of vendor records needed a scalable yet accurate and automated solution.

The humungous vendor base of the client meant a sophisticated system that could take care of GST compliance requirements.

GST basically requires generation and recording of every small transaction that takes place in the organisation even if it is within the group stores. Dealing in multiple products meant that data capture needed to be accurate for each product with di�erent GST rate applicable. There was a need to make sure that every data is captured and presented in a manner that is in a GST return filing format and take care of identifying errors and mismatches for reconciliation for huge volume of transactions.

Our client is the biggest retailer in India dealing in retail products ranging from groceries, fashion apparels, home and personal care to home furnishings through various retail stores. They primarily source from multiple brands and retail them under one roof. Their business is spread across the country with several retail stores for each segment of products in each city. It serves over 500 million customers each year and has 30,000+ small, medium and large vendors.

The client dealt in numerous consumer products with di�erent GST rates applicable to them. There were multiple business scenarios. Some products were even ‘Zero Rated’ or ‘exempt’. Hence data needed to be read by the systems in a manner where GST rates will not be charged wrongly. The major challenges were -

THE CHALLENGES

Data from SAP was not entirely GST Compliant.

Multiple line items in a single invoice with multiple GST rates.

Depending on the business processes followed, the data available in SAP did not have one specific pattern.

There was mismatch of data in Form GSTR 3B and that of Forms GSTR1 and GSTR2.

There was a major mismatch for summary values which they were filing.

CLIENT: A RETAIL GIANT

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THE CYGNET GSP COMPREHENSIVE SOLUTION

At Cygnet we have designed an implementation methodology – TRACE which is comprehensive and tailored to specific client needs. It extracts, validates, processes, reconciles and reports the financial tax data from your systems and prepares your GST returns for filing them on GSTN portal. We call them Lego Building Blocks of our solution architecture.

Our LEGO Logic - We all know Lego blocks and have created numerous structures using them in creative ways. Similarly, we at Cygnet use our array of software components, utilities, programmes, connectors and such to tailor a perfect solution to extract data from client systems and make it GST compliant and ready for filing GST returns. The main aim is to ensure that there is a connection between the source systems and the GSTN portal through a system-atic processor that converts data into a standardized format.

Source SystemData ETL Tools Data Warehouse

Data Mapping,Massaging &

Sync ToolASP

GSTN Portal

Accounting and Invoice Management

TRACE

Tax Reporting Automation & Compliance With Ease.

The di�erent components used are:

Data Extractors: These intelligent connectors perform the extract, transform and load function for extracting data from source systems. We have designed standard connectors for di�erent source systems e.g. Oracle, SAP, Finacle and others.

Data Warehouse: The entire data that is extracted or given to us by client systems is stored in a data warehouse.

Data Mappers: Data is mapped according to relevancy and forwarded for further processing.

Data Massagers: Data is checked for errors and incorrect data formats are corrected in this component.

Invoicing Utility: In this utility we create invoices, credit and debit notes for transactions that are not created by the source systems but are required to be created as per GST requirements.

DSU: Data Sync Utility helps to upload the massaged data into the ASP solution for further processing. It picks up files from the ‘In folder’ and segregates error files. It also maintains a log and archive folder for audit purposes.

AIM: Accounting and Invoice management is equipped with capabilities to identify the invoices that are not accounted for and raise tickets for passing relevant JVs for these. It also creates invoices and digitally signs them.

ASP: The ASP solution reads all the data from the DSU and creates records for return filing on the GSTN portal. It validates, organizes, reconciles, reports, stores and connects the data with the GSTN portal. It also prepares your GST returns to be filed.

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Cygnet was appointed by the client since the inception of GST and hence we identified all the data challenges of their ERP source systems where data was not in GST compliant format.

Cygnet GSP provided a complete automation solution for return filling from converting the client data in the existing SAP ERP systems into a GST compliant data that went through the Cygnet validation engines and then the ASP solution.

Creating programmes to communicate with the SAP systems to pull data from the systems and also send it back to the source systems when there is an error file generated.

Developing customized MIS reports basis multiple business scenarios including reconciliation reports for sales and purchase returns with credit and debit notes, exempt goods transactions, export-import transactions and reconciliation of GL.

We made use of our Lego Blocks philosophy where we used the DSU and ASP components developed in-house by Cygnet were fitted into an architecture to create a perfect solution for the client’s problem areas.

We created a Z program to communicate with the client’s SAP data source systems. This basically converted the data from SAP into CSV, XLSX and XLS formats that were readable by the GSTN return filing utility.

Our solution mainly focused on the following:

Suggestion of adding checks and validations at SAP level.

All the types of transactions were understood, analyzed and accounted while fetching the reports.

Providing a consolidated report derived from client’s sales and purchase register to calculate and reconcile their Form GSTR 3B.

Transaction level reports for B2Cs, HSN Summary and exempted sales were provided so the clients were able to validate and reconcile them.

• Invoice data• Vendor data

• Sales and Purchasedata

• Logs• Archives

• In and Outfolders

• Data validation • Reconciliation

• Reporting • Connecting with GSTN

DSU ASP GSTNClient’s

SAP systems

SOLVING THE CHALLENGES WITH

CYGNET GSP SOLUTION

Faster processing of data for filing GST returns with the multiple validations placed in the source ERP system.

Reduction in manual e�orts with validations incorporated in the existing SAP ERP system on the basis of Cygnet validation engine.

Greater and smooth GST compliance with a completely automated data processing and record generation for GST return filing.

Accurate reading and processing of data with multiple line items in single invoice with di�erent GST rates applicable to each item.

The client experienced multiple benefits from the implementation of CygnetGSP solution which included:

TANGIBLE BENEFITS

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I

Cygnet GSP is an initiative of Cygnet Infotech, a multinational IT services and solutions company, headquartered in India with branches in Mumbai, Pune and Noida and global o�ces in USA, South Africa and Australia. Cygnet was selected as a GST Suvidha Provider in 2016 and since then has developed comprehensive solutions for GST, E-way Bill and other tax technology solutions.

Cygnet Infotech is one of the most trusted names in the IT space delivering technology solutions to global clients across 35 countries. Born out of a vision to create software development company where quality, innovation andpersonalized services trump low cost, makeshift solution, Cygnet partners with its client to help them transform in to high performance businesses.

Cygnet has deep industry and business process expertise, global resources and a proven track record in delivering innovative technology solutions. Cygnet can mobilize the right people, skills and technologies that improves businessperformance.

About Cygnet GSP

About Cygnet Infotech

Founded in 2000,currently with o�cesacross 6 continents

900 EmployeesDelivered 2000+

Projects

18 Years of ExperienceServing 250+ clients

in 35 countries

80% Client Retention

Partnerships Credentials

Copyright © Cygnet Infotech

CYGNET INFOTECH PVT. LTD.16-Swastik Society, Nr. AMCO Bank, Stadium Circle, Navrangpura, Ahmedabad 380009, Gujarat, India

+91-79-4901-2525

hello@cygnetgsp.in

www.cygnetgsp.in

Mumbai, Noida, Pune

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