Case studies Consumer Electricals Manufacturer

A leading consumer electricals brand is using CashFlo's GST Check & hold product to ensure no loss of ITC and vendor GST compliance

INDUSTRY

Consumer Electricals

PRODUCTS USED

Payments & Reconciliation, GST Check & Hold

KEY SUCCESS METRIC

Saved INR ~2.5 Cr of annualized ITC loss

TURNOVER

~INR 500 Crore

Objective

This mid-sized electricals player has 300+ suppliers. The team was facing the issue that at any given point in time, about 20% of the vendors were not filing GST on time. They were using a GST reconciliation solution which gave a reconciliation report after the quarter end. This was wasting a lot of time as the GST team would have to chase those suppliers to file GST after the quarter ended to claim the credit. Some vendors would still not file, which led to ITC loss.

Solution Provided

CashFlo's GST check and hold product solved the vendor's GST compliance for this client. The GST check and hold enabled the team to know which vendors have filed the GST against which invoices, at the time of releasing the payments. The solution also gives visibility on the GST filing behavior of their vendors. The client has implemented the policy of holding back the GST component of the payment with a simple toggle button at the time of releasing the payment. This automatically ensures that the vendors file GST on time.

CashFlo's GST Check & hold product is superb. Now we don't have to worry about which vendors have filed GST and which have not. We simply hold back the GST component which is ensuring no ITC loss. We have not come across any other player in the market that provides this capability of holding GST while making payment through real-time reconciliations.