How we Brought Precision and Efficiency to a Multi-State Refractory Conglomerate’s GST Reconciliation: A Success Story
Background:
The Client was a conglomerate of four companies engaged in the manufacturing of high alumina refractory bricks and castables. This conglomerate consisted of different group companies spread across different states and jurisdictions. The client provides a complete line of services including refractory design and layout for green field projects, refractory application and maintenance. The client’s business has a highly diversified product portfolio and has complete control over its supply chain through ownership of mines.
Issues Involved:
With an objective to solve reconciliation problems the client partnered with Acupro. With a strategic initiative, Acupro identified the following issues:
· Incorrect GST rate and HSN codes charged by the Client.
· Outward liability/Input Tax credit of one state was wrongly booked in another state.
· Tax was charged in the wrong head (i.e IGST was charged instead of CGST/SGST).
· Entries for Outward supplies/ITC were either not posted or were wrongly posted in the books of accounts.
· Liability under RCM was not correctly discharged.
· Ineligible ITC booked by the Client in the books of accounts.
· TDS deducted by customers under GST act but not registered in the books of accounts.
· Delay in closure of the books of accounts
How we helped:
Our team provided valuable assistance in several areas:
· Incorporated the correct GST rate and HSN code in the client’s accounting software.
· Identified the transactions which were wrongly booked and helped the entity to correct the same in its books of accounts.
· Prepared reconciliation of outward & inward supplies between GSTR 3B and books of accounts and rectified wrongly passed entries.
· Checked the place of supply and helped the client in rectifying the GST that should be charged based on the correct place of supply.
· Analyzed each and every transaction of the entity and found the RCM implication on respective transactions.
· Identified TDS deducted by the customers under GST from the portal and helped the client to record the same in the books of accounts.
Conclusion:
Our team helped the client comply with GST regulations within the specified timelines, while ensuring that all deliverables were met timely and properly.