2. ● 7M Businesses (VAT + ST Base)
● ~5B Invoices/Month in the system
● 37 returns per year instead of 2!
● GST rates are released - range between 5% and 28%.
GST Basics
Up to Rs. 20 lakhs
Up to Rs. 50 lakhs
Anything above
• Registration is not required
• No GST needs to be charged
• Can avail Composition scheme
• 1% and 2.5% for traders / service
providers and manufacturers
respectively
• Restrictions on who can register
3. Technology Shift: Pre & Post GSTN
Cloud/Mobile based
GSTn is fully API based which opens up innovation &
flexibility in user experience
Full automation due to GET APIs from GST and systems able
to auto reconcile (less manual intervention)
Banking, Accounting & Tax filing can be bundled
Mostly Desktop based
Tax filing is cumbersome as it is file &
screen-scraping based
Manual re-entry & adjustments in accounting, tax
filing
Silo’ed systems
4. GSTN Technology Ecosystem
Tax Payer
Application
(Local ERP, Standalone
Custom Application, Excel
based System etc.)
GSP Portal
(Providing Excel , csv etc.
based invoice
upload/GSTR2
download/GSTR1
Summary)
GST
Server
GSP
GST
Server
MPLS
SMB
6. GST Returns - 3 every month
GSTR 1 -
Sales
Information
GSTR 2 -
Purchase
Information
GSTR 3 -
Consolidated
information
(1&2)
7. GSTR 1 Flow
SMB Selects a
GST Software
Application
Authentication -
One time or OTP
Export Sales
Register [With
Invoice Level
Details]
Generate GSTR1
in JSON
Prepare Return
& View
Summary [GST
portal or
Application]
Receive
Acknowledgeme
nt
Digitally Sign &
Submit Return
Every SMB gets a GST portal
username & password. He can use
this to authorize an application to
fetch his details on his behalf
He can manually upload a CSV
from an external source or his
application can perform this
function on his behalf
CSV of sales invoices have to be
converted into a JSON as per
format defined by GSTN
8. GST Filing
Process
Timeline
SMB
(Tax Payer)
GSTn
By 10th
- GSTR1
Save / Upload Sales Invoices
File Form GSTR1 Return
By 15th
- GSTR2
Get purchases through GSTR2A
Reconcile Purchase register
Add / Amend Purchase Details
File Form GSTR2 Return
By 17th
- GSTR2
Accept / Reject buyer changes
Get buyer changes through GSTR1A
SMB can modify uploaded invoices by counter
parties or add additional purchases not
uploaded
Compare purchase details received with what’s
uploaded by counter parties
By using better collaboration, SMBs can avoid
these discrepancies
Generate / Get GSTR3 details
File Form GSTR3 Return
Make GST Tax Payment
By 20th
- GSTR3
9. Life of an SMB: Pre & Post GSTN
All my Invoices needs to be GST compliant & uploaded
to GST network every month by 10th of the successive
month
Follow-up for payment from my client is more painful (If
I don’t upload my client will not pay as they can’t claim
credit)
Need to reconcile purchases as mismatches will lead to
loss of tax credit and hence it is critical to track
purchases too
Sending the transactions offline (excel) may not be
viable as the returns are broken into 3 stages with
tighter deadline & penalty
My invoices and expenses are tracked in my
system of record (typically excel) and later given
to my CA
Follow-up for payment from my client is painful
(I can send invoice through any medium and
claim input credit later)
Don’t have time to record my vendor bills so
don’t know my total expenses (my CA will do
that)
Tax payment & filing is a backend process.
Multiple sources of data is submitted to the CA
who prepares returns
10. GSTN Compliant Invoice - Sample
GSTIN of the
supplier is required
Place of Supply is critical to
determine tax rates applicable
(CGST/SCGST) or IGST
Every item (Good or Service) need to have
either CGST/SGST or IGST
Every item needs to have a HSN
(Good) or SAC (Service) assigned
by GST
11. Data Driven Decision Making for SMB Credit
Others
BBPS
Digital
Payments
ETC
GSTN
Machine Learning
& Algorithms
Smartphone
SMBs
C
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