As we bid farewell to yet another transformative year, it’s time to reflect on the myriad of events that shaped IRISGST in 2023. The evolution of IRIS GST products into their current state is attributed to many factors, ranging from significant global advancements in e-invoicing to country-specific updates in GST laws. This journey has been marked by a tapestry of challenges, subsequent advancements, and collective success.
As we navigate through the pages of this year’s review, we revisit the defining moments that shaped IRISGST products, celebrate the milestones, and delve into topics that have left an indelible mark on the overall development of the business line.
Join us on this retrospective journey as we unravel the highs and lows that have molded the narrative of 2023, offering valuable insights into the ever-evolving IRISGST products
You said, we listened
As always, we are grateful to our customers and partners as their feedback and suggestions help us to get better and better. We have also been thankful to our Peridot patrons and webinar participants for the overwhelming responses we receive to our surveys. Of the many webinars we have conducted during this year, ITC maximization and new statement of ITC reversal were the most popular ones.
When ITC reversal and reclaim statement was introduced in Aug 2023, we asked businesses how they are managing this task. And the result was quite encouraging to the progressive approach taken. In our GST compliance platform, we have had ITC tracking at the transaction level for a few years now.
We believe this would have helped our customers to have full control and visibility when it comes to reversal and reclaim of ITC.
In our last webinar of 2023 and to the wider Peridot community, we asked how their experience was once they started looking at reconciliation with GSTR 2A/2B and vendor compliance, before releasing payments to the vendors. And the result was
10 Key Updates of IRIS GST
While we keep our customers informed about new developments and releases from time to time, here are some highlights:
1. Launch of Reconciliation Planner
Reporting of ITC and payment of tax liability is monthly, the tasks around reconciliation, follow-ups for missing invoices and discrepancies, revisiting deferred ITC etc. are on-going. Many of these activities are known and can be scheduled in advance. That is where Reconciliation Planner comes in handy. Set up your activities and dates on which you want to schedule fetching GSTR 2A, 2B, run reconciliation, flag 3B position etc. Our system will run these activities as per schedule relieving you of all the mundane and routine tasks and focus on the core that needs your attention.
If you are not already using Reconciliation planner, contact our team today and activate this premium feature.
2. Custom Rules for Automated 3B Preparation
Stringent ITC rules, additional disclosures for reporting in 3B and the objective of ensuring no ITC gets lapsed requires ITC position taken should be available at the transaction level and with appropriate audit trail, whenever any changes are made. For example, from ITC reversed to ITC reclaimed.
In pursuit of keeping our customers future-ready, our platform already had provision to identify and mark ITC positions while preparing 3B. This process just gets easier. You can define your own rules and conditions for ITC for all your GSTIN and let the system do identification and marking. Only exceptional cases remain for you to address.
3. Enhanced Reconciliation Rules powered by AI
The goal of reconciliation is two-fold, get maximum comparable documents between purchase register and GSTR 2A /2B and classification of differences if any, into easy and actionable categories.
Since the inception of GST, our reconciliation rules have been evolving covering basic matching, across period, across FY, probable matches based on values etc. We have further enhanced our rules using AI (Artificial Intelligence) to identify comparable documents. You get an option to apply your acceptable limits to consider invoice as match.
4. Vendor Cockpit for valuable insights
Reconciliation results along with GST compliance history of vendor can provide insights on deciding the payment releases to the vendors keeping in view your ITC claim is safeguarded.
This year we released a module dedicated to vendor activities and this will soon expand into an end-to-end accounts payable automation. Starting with recommendations on whom to pay and how much, our insights will help businesses make the most effective utilization of their working capital
5. Mutli-dimensional reconciliation for ITC but beyond GSTR 2A/2B
The primary objective of aligning Government ledgers with our own purchase register is to optimize Input Tax Credit (ITC) to its maximum potential. While GSTR 2A and 2B serve as the primary sources for comparison and finalization, compliance with E-way Bills also plays a crucial indirect role in influencing ITC and other GST-related compliances.
Matching with inward e-invoices not only provides assurance of comprehensive vendor compliance but also serves as an indicator of goods received—a critical condition for claiming ITC. Our platform has consistently supported various reconciliation processes, encompassing Input Service Distributor (ISD), GSTR 1 with e-invoicing, and GSTR 1 with e-way bills. The latest addition to our reconciliation collection is the reconciliation of inward e-way bills with the purchase register, further enhancing the depth and efficiency of our reconciliation capabilities.
6. Generative AI-powered litigation management
As businesses increasingly face notices generated through automated analysis and system scrutiny, the demand for more efficient and comprehensive solutions to manage notices, audits, and litigation matters has never been more pressing. Enter IRIS LMS (Litigation Management System).
Our platform has undergone significant enhancements, now harnessing the power of Generative AI models to read notices and generate concise summaries. This intelligent system not only streamlines data compilation, saving valuable time for teams, but also transcends mere data extraction by producing insightful analytics from the notices.
Reports on contingent liability and analytics providing an organizational-level view of amounts under litigation, coupled with the ability to track cases across all stages, are immensely valuable. This upgraded platform, featuring AI-based notice reading, analytics, and a contingent liability report, offers a sophisticated and efficient solution to navigate the complexities of notices, audits, and litigation matters.
7. Comprehensive Billing Module to manage and maintain your invoices
Our platform has upgraded to a complete billing solution from e-invoicing management. Now, you can easily create unique invoice numbers by combining different details, giving you more control. After generating an invoice, you can also get an Invoice Reference Number (IRN) if needed. Plus, you can receive the invoice in your preferred custom format. It is a simpler and more flexible way to manage your billing needs.
8. IRIS IRP is now live
In the previous year, IRIS achieved the distinction of being chosen as one of the four Private Invoice Registration Portals (IRPs). Fast forward to March of this year, and we are excited to announce that we have officially gone live. With IRIS IRP, businesses can now easily generate e-invoices including Credit/Debit Note (CDN).
Beyond our core e-invoicing services, we offer a suite of value-added features, including extended data storage, seamless invoice sharing with recipients, comprehensive reports, insightful analytics, and a host of other functionalities to enhance your invoicing experience.
9. GST + Bank Data Triangulation and 3-way Matching introduced in IRIS Credixo
Traditionally, lenders have conducted Invoice Verification through manual post-finance audits, involving the collection of physical copies of invoices or visits to borrowers for necessary information. With the increasing availability of digital data based on borrower consent, there is a growing demand for automated invoice verification processes.
In response to this need, our GST analytics solution for lenders, IRIS Credixo, has been enhanced to incorporate a 3-way matching system for invoices sourced from authentic data channels—GST, E-invoice, and E-way Bills. This integrated approach provides financiers with a comprehensive single view, offering insights into the authenticity of invoices, signaling either assurance or potential red flags.
In addition to GST data, we have seamlessly integrated bank statements into our platform. Fueled by AI, lenders can now access a thorough analysis of GST data combined with banking information. This triangulation process yields valuable insights such as ageing analysis, recurring expenses, and risk profile, empowering lenders with a holistic view for more informed decision-making.
10. Know your Consignment, anytime, anywhere
In the transportation industry, staying updated on the movement of vehicles poses a significant challenge. With vehicles constantly on the move, the need for timely information can arise at any moment. Recognizing these pain points, our application, Easy WayBill, has stepped in to address these challenges effectively by leveraging Fastag and E-way Bills. Now, users can conveniently access real-time information through the familiar MS Excel interface and a user-friendly mobile app, providing a seamless solution to the dynamic and ever-changing demands of logistics.
What is in store for 2024?
Changes in law and upgrades in technology result in new challenges and new avenues to improve and transform.
Some key areas to watch out for:
- The utilization of purchase e-invoices is a prime example, providing a digital approach to procurement processes. The talks to further lower the threshold of e-invoicing are on and once that happens, more businesses will get covered under e-invoicing. And a result, more data in digitally consumable format
- While automated scrutiny and notices will be on surge, the Government is contemplating making notices available for direct fetch from GST portal via GSPs. This will not only help business to track all notices but also curtail the illegitimate practices of extracting notices from GST portal using login credentials
- As per rule 37, ITC needs to be reversed if the vendor has not filed GSTR 3B within the specified time limit i.e., by Sept following the FY. For FY 2022-23, email communication was sent to businesses. Given that GST system already has info on filing status of vendors, ITC subject to reversal due to non-filing of 3B by vendors there is a possibility of informing this via GSTR 2A or 2B or any other means.
- On one side businesses are seriously looking at vendor compliance, the natural extension could be to incorporate vendor checks in procure to pay cycle, right at the data capture stage. Cleaner and quicker data at source will mean efficient accounts payable processing.
For all these upcoming possibilities and trends, we are also geared. Do not miss out our upcoming webinar on Compliance Trends 2024 on 5th Jan 2024.
In retrospect, the year 2023 has been a remarkable journey for IRISGST, marked by continuous evolution and a commitment to addressing the dynamic landscape of GST compliance.
For a detailed exploration of the 10 key GST updates for 2023, follow this link: 10 Key GST Updates of 2023.
As we bid adieu to this year, we express gratitude to our customers and partners whose valuable feedback has been pivotal in our growth.
The unveiling of innovative features such as the Reconciliation Planner, Custom Recon Rules, Billing Module and Vendor Cockpit demonstrates our dedication to simplifying complex processes. Additionally, the launch of IRIS IRP, and enhancements in the Litigation Management System and IRIS Credixo highlight our forward-looking approach.
As we set our sights on 2024, we anticipate both challenges and opportunities stemming from evolving laws, increased integration of technology within government systems to combat tax evasion, and subsequently, heightened legal complexities for businesses at large. In this dynamic landscape, businesses preparing for the future must recognize that the judicious use of technology serves as a beacon of innovation and efficiency. This strategic approach not only offers a pathway for growth but also positions them for success in the ever-evolving business environment. As we continue to adapt and thrive, IRISGST remains steadfast in its commitment to providing innovative solutions and unwavering support to our clients on their journey towards compliance excellence.