MANUFACTURING CASE STUDY

Improve manufacturing process efficiency with Avalara GST Compliance Suite

Since 1995 and headquartered in Kolhapur, Maharashtra, this leader in the production and distribution of automobile parts caters to a diversified segment. That segment ranges from heavy commercial vehicles, light commercial vehicles, tractors, and passenger cars to nonautomotive components for diesel engines and other engineering products. With a production capacity of several thousand million tonnes of machined iron castings, the company manufactures hundreds of different types of parts in various manufacturing facilities located across the country. As one of the few companies in the sector with a full-fledged paint shop, the company boasts an integrated facility with foundry, machining, painting, and subassembly all under one roof.

Tax challenges

  • Rapid growth
  • Increasing GST complexity
  • Keeping up with GST obligations
  • Time required for manual GST return filing

Avalara Products

Results

  • Flexible implementation
  • Confident compliance 
  • More efficient filing

Growing Volume and Complexity, Teething Troubles

When Goods and Services Tax (GST) was introduced in India in July 2017, it was clear manual GST return filing was not an option for the company due to the volume of daily transactions and complexity involved in different types of transactions (such as B2B, B2C, exports, and SEZ transactions). Right from the start, they sought out a technology solution.

Avalara TrustFile GST offered that solution with advanced features for transaction segregation in an efficient manner. By leveraging tax automation, they were able to reduce the time spent on return filing.

The Solution – Avalara GST Compliance Suite

With the introduction of GST, the entire returns filing process — from filing taxes to claiming tax credit — is now done online. Therefore, the business understood it was time to adopt a cloud-based returns filing solution. The manufacturer was looking for a comprehensive tax automation solution they can use to:

  • Upload sales invoices
  • Reconcile invoices with various counterparties
  • Manage various businesses units with multiple registration details
  • Validate input data such as GSTINs
  • Track Input Tax Credit

The company implemented TrustFile GST to handle high volumes of transactional data on a daily basis and maintain the master data for all business units located across the country. TrustFile GST transaction modules help the manufacturer differentiate between transaction types such as B2B, B2C, export, and SEZ. The solution also helps them reconcile invoices, track Input Tax Credit, and automate GST return filing.

Efficiency and Peace of Mind

With Avalara TrustFile GST, the company is now GST compliant as per government rules, without the hassles of invoice data reconciliation and GST return filing. The platform has opened avenues for the company so they can focus on the growth of their business rather than on manual tasks.

With GST, it’s crucial for businesses to ensure accuracy of invoice data and see to it that tax returns are filed on time. Avalara cut down GST return filing time for the manufacturer by almost one-third. Reports and ledgers required for filing GST returns are now available with a single click. Avalara also helps keep them future-ready, making necessary changes to the platform as per government regulations. Avalara TrustFile GST became a one-stop solution for Goods and Services Tax compliance in India for the global original equipment manufacturer and supplier.

About Avalara

Avalara Inc. helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, GST, excise, communications, lodging, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in Canada, the U.K., Belgium, Brazil, and India.

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