The better the question. The better the answer. The better the world works.

How an automated digital platform is helping hundreds of companies comply with a new tax law

Learn how an EY Tax team in India created an automated solution to help their clients save time on invoice processing and tax compliance.

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The better the question

How can an overwhelming challenge change your view of what’s possible?

Submitting thousands to millions of invoices manually is extremely time and labor intensive.

For generations, taxes in India had been levied at the local level, causing regulation challenges. On July 1, 2017, India enacted the Goods and Services Tax (GST) at the national level to unify and digitize the tax structure across every state, industry and organization. As a result, every company needed to digitally submit all invoice details into a government-hosted portal. Anticipating that there would be a challenge for large companies with a significant volume of transactions, the government selected GST Suvidha Providers to submit the client data and interact with the new government portal.

The EY Tax team in India needed to find a solution that could help all of their clients comply in this new digital environment. Previously, companies had only reported twice a year, but the new system required them to report their full index of invoices monthly. As each of these clients could have anywhere from 50,000 to 5 million transactions per month, the team knew that a manual solution was out of the question; they needed to find an automated solution to help their clients.

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Automating and digitizing

A new digital platform is streamlining and enhancing the invoice process.

With tax and technology professionals under the same roof, the EY team created an agile environment where they could quickly develop and test prototypes. The result was DigiGST, a platform that validates data elements from across many different sectors, converts them into the required digital format and pushes them into the portal every month. The team anticipated that the law would evolve as the country adjusted to the new system, and the code was built to be easily updated accordingly. Since the platform was cloud-based, the team could quickly respond to changes and incorporate these updates automatically from a single source across all their clients, rather than updating it on a client-by-client basis.

In the law’s first six months, regulators changed the rules more frequently than they had anticipated as a response to industry feedback. EY Tax professionals and developers worked together to interpret these changes, make the necessary adjustments and test the algorithms in an almost 24/7 collaborative effort. Since the update could be instantly distributed, the team could focus their time on getting the code right and not letting down their clients.

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Evolving the platform

DigiGST will continue to improve transactions and confidence for present and future clients.

Since the law’s enactment, DigiGST has processed more than 300 million invoices, averaging 20 million per month. This platform manages 28% of the transactions across all GST Suvidha Providers in India.

As the law evolves and matures, the platform’s agility will continue to be a major differentiator in the market for years to come. But the real value of DigiGST is the trust instilled in the team’s clients, who faced uncertainty in the presence of a new law. With a dedicated EY team that can act as quickly as the law changes, they have increased confidence in the ability of their organization to be in compliance every month, now and through the future.