Introduction
A leading global airline facing challenges in timely invoice generation and accurate tax determination, resulting in delayed returns and increased interest costs. Through strategic measures, the airline successfully streamlined its tax determination process, significantly reducing interest costs, ensuring timely returns, and accelerating invoice generation.
Tax Determination and Compliance
- Delay in invoice generation and sending to corporates/customers due to inability to determine taxable value, tax amounts and tax type at source.
- Interest cost due to delay in filing returns due to inability to determine state from which invoice is to be reported and the amount of tax to be paid.
Challenges at Altitude
- Diverse Ticket Sources: Identifying the state for reporting supplies from tickets booked across states, offices, and online platforms.
- Origin and Destination Puzzle: Pinpointing the place of origin and destination to establish the place of supply.
- In-Flight Services Conundrum: Deciphering the location of consumption for various pre-boarding and on-board services.
- Taxability Dilemma: Assessing taxability or exemption status based on the place of supply.
Journey to Timely Compliance
- Significant amount of interest saved due to enabling tax determination before return filing due.
- Previously accustomed to filing returns post-deadlines, the airlines now ensures timely filings, resulting in accurate tax determination and significant interest savings.
- The lag between receipt of data and invoice generation reduced to 7 hours, enabling quicker dispersion of invoices.
- Rigorous GSTIN validation that ensures accuracy in transaction records and maintains compliance efficiency.
Elevating Success
- The percentage of invoices generated correctly surged from 76% (pre-automation) to an impressive 99.99%, minimizing errors and subsequent revisions.
- Automation has resulted in significant resource savings, with over 10 man-days every month saved.
- Swift identification of GSTIN and conversion of invalid or inactive GSTINs to B2C status.
