Digitalizing Textile in India
A textile industry leader, digitally transformed the overall business with the implementation of the data warehouse to collect data from multiple legacy systems easily. This action helped them with easy analytics report generation using key data insights. As their strategic IT partner, Cygnet offered Seamless data cleansing, massaging, and validating for the required data fields as per the govt rules and VAT laws. Through our consultative approach, we discovered and implemented an automated Indirect Tax Return and Compliance Solution to automate the generation of VAT returns, audit fi les, and input tax apportionment. With Cygnet’s contributions, the client saved 4 to 8 man-months while developing flawless and perpetual compliance.
Transforming manual operations into digital processes
Our client faced significant challenges with their traditional accounting system, which often led to costly errors. Managing indirect taxes for their vast volume of transactions proved to be particularly problematic. Additionally, the restricted retrieval of line-level data complicated the generation of the GSTN audit fi le, a critical requirement by the GSTN & NIC. Ensuring data validation and verification in compliance with GSTN & NIC norms further added to the complexity, highlighting the need for a more efficient and reliable accounting solution.
The key challenges faced:
- Traditional accounting systems caused expensive errors.
- Difficulties in handling indirect taxes for the huge volume of transactions.
- Restricted retrieval of line-level data complicates the generation of the FTA audit file.
- Validating and verifying data as per the GSTN & NIC
Preparing for the future
To overcome client challenges, Cygnet implemented a comprehensive solution. This included establishing a data warehouse to collect data from multiple legacy systems seamlessly. An automated Indirect Tax Return and Compliance Solution was deployed, simplifying VAT return generation, audit files creation, and input tax apportionment. Over 400 error checks were integrated, scanning millions of records for accurate data extraction. Data cleansing, massaging, and validation ensured compliance with GSTN requirements and VAT laws. The system facilitated swift reconciliation between invoices, credit notes (CNs), and the general ledger, boosting financial process accuracy and reliability.
Success Delivered
- Saved 4 to 8 Man-Months: Automated solutions slashed manual processing time, boosting operational efficiency.
- Reduced Manual Efforts: Tax returns and compliance automation minimized errors, freeing up staff for strategic tasks.
- Easy Analytics Report Generation: Advanced analytics simplified report generation, offering vital data for informed decisions.
- Flawless Compliance: Continuous adherence to regulations provided peace of mind and mitigated compliance risks.
About Client
Our client, a global leader in apparel, excels in textiles, advanced materials, and more. Renowned for denim innovation and sustainability, our client’s impact is vast, producing fabric equivalent to circling the earth six times. Our client manages renowned brands and employs 42,000 people since 1931, shaping a brighter future.