S.

no Issue

1 ITC on Shortage Quantity

2 DN/CN issued by supplier

Deduction on Account of LD from the

3
supplier

4 PO Automation
5 Master Data Control
6 GST credit-Banking service multiple

7 GST credit -sub-vendor-CHA bill

8 GST credit- Employee travel/Hotel

bill/ air ticket/ railway ticket

9 180 days reversal

10 MIRO/MIGO

11 Transactions after Sep of previous

year

12 Wrong invoice details

13 ITC on imported goods

14 Bifurcation of ITC
15 FI entries

HSN code/SAC against which GST

16
credit taken

Custom duty liability on demurrage

17
charge paid subsequent to import

Recompilation between invoice value

18
vis-vis actual payment to vendor

19 Revenue Reconciliation- Monthly

20 RCM-Ocean freight –GST payable on

notional  value

21 Export Valuation

Export transaction automation linking

22 GST invoice with export benefit/MEIS
Licence/actual realisation/Advance
licence/DFIA licence/drawback/ EPCG

23 RGP /NRGP/job work GST challan to

be developed

24 New Returns
25 Single invoice with different GST rates

26 Any recovery should be under GST

invoice unless exempted
27 Bill of Supply for MEIS
28 Scrap Sale

29 Charges in coal invoice

Debit note and credit note in case of

30
export

31 RCM payment on

32 RCM Self Invoices & Payment

Voucher

33 Advance Payments received

34 E-way bill linking

35 Linking of transporter's invoice

36 Automation of reversal and refund

calculation

37 Inter-units

38 Composition Dealers
39 Free issues to contractor
40 FTP Compliances

41 Bill of Supply
Description
- Invoice booking on full value in case of shortage/rejection in qty and recording of less quantity in SAP
For eg Invoice is for 100 Quantity, and GRN is of 90 Quantity. SAP entry is done for 90. To record loss of 10
Quantity
- Further Short Receipt of Material, resulting in Short availment of Credit - Issue in Reco with R-2A
- Difference booked through credit note/debit note??.

- Supplier is uploading the DN and CN post receipt of payment. How to deal ITC issue in this regard.
'- How to match with GSTR-2A
- Normally LD is deducted at the time settling the bill, however the LD is deducted on the provisional amount
which becomes finalised after 3-4 months post discussion with the party. Post discussion LD amount can
change ( can be same, lower or zero).
'- GST entry on Liquidated Damages/contractual Deductions in SAP and corresponding Invoice Generation??
- 'Automation in PO for deciding POS and determining IGST/C_SGST
- Control on Master Data of Vendor/Customer - GSTIN match with PAN
- One bank issuing one document mentioning multiple invoice. In 2 A also multiple invoices are coming.
However in our SAP one entry is passed as bank has given one document. How to ensure reconcilition?

- CHA hires services of its sub vendors for various activities. Sub vendor raises invoice directly in the name of
Vedanta but payment is made to CHA for further disbursement to the sub vendor. Vendor code opened only
for CHA and no separate code opened for sub vendor of CHA. How to do Vendor Reco??

-Any mechanism to record all the supporting invoices in the system which can participate in vendor reco
Major impact in filing refund claims-ITC mismatch

- Vendor code opened only for agent and no separate code opened for railways, hotel, airlines
Difficulty in Vendor Reco??
-Any mechanism to record all the supporting invoices in the system which can participate in vendor reco
Major impact in filing refund claims-ITC mismatch
- To link E- banking portal maintained by Treasury team from SAP . Auto entry in SAP to be done
- Single MIRO for multiple invoices
- MIRO Reversal (Dr./ Cr. Notes)
- No entry post september for fy

- Check on creation of debit/credit on invoices pertaining to previous FY (upto Sept’XX)

- Invoice details are captured wrong while doing entry. How to ensure appropriate control?
'- GST captured IGST instead of CGST/ SGST or vice-versa?
'- Vendor having 2-3 place of business. Billing done from place A but entry passed in system with B
location..issues in Vendor Reco?

- Goods are imported in bulk qty where as goods are transported from port to plant under different modes
either by truck/ rake over a period of 1-2 months time. Reconciliation of BOE qty vis a vis GRN qty in SAP. SAP
GRN does not have BOE ref.. IT has PO ref.

- Eligible and non- eligible

- Capital goods/ Inputs goods/ Inputs services
- Common Credit
- Expense wise bifurcation

(Separate reports could be taken out for each of the item mentioned)
- Not coming in ZNSR report
- Proper maintenance of cost center, WBS, narration, bill no while passing FI entries – SOP needed
- Entries not booked through tax code

- Correct HSN/ SAC code capturing in SAP

- HSN of invoice not matched with Master (Full proof system of HSN from invoice capturing should be in place)

- Demurrage charges recovered by shipping line/transporter after sometime (3-6 months)

- Demurrage charges identified from GL. Results in delayed payment of customs duty on demurrage charges
Mechanism to identify such payments on time to avoid delayed payment of interest?
- Invoice Value 100 plus GST= 118
Payment- after adjusting advance, TDS, etc.
reco in SAP for 180 days reversal
- Nil rated, exempted, zero rated , normal supply - Reco in SAP with revenue GL
- Revenue reconciliation between GSTR-1 and GSTR-3B with financials
- GST paid on ocean freight import in case of CIF imports. GST payable on notional value
- No trigger in system for payment of import sea freight on time. GST paid under RCM with interest. Mechanism
for identifying such instances. More details to be sought from the respective team

Export Contracts are mostly at provisional price. While removing the finished goods from plant to port, GST
invoice is raised on provisional price based on past experience which is 10% higher than the expected higher
price. Since goods are cleared under LUT. So much focus is not their on the valuation. Exchange rate of CBIC
should have been followed while raising GST invoice. Due to user discipline, exchange rate is being changed to
RBI exchange rate. For the practical limitation, the provisional assessment has not been opted under GST.
After the goods are reached at port shipping bill is being filed at provional price which may be different from
GST invoice which can be higher or same due to practical experience. The provisional assessment of shipping
bill not obtained under customs due to practical limitations. That MEIS license is available @2%- lower value
shown in shipping bill vis-a-vis BRC. To ensure no loss on account of MEIS license shipping value is shown higher
based on practical experience.
The actual realisation happens after final shipment which is different from the shipping bill. There are three
value ( 3 FC vale. 3 Exchange rates) are available which at present are controlled through excel only.
Plant to port- dispatch value
AT port- shipping port value
BRC Value- linking to GST invoice wise

- Linking between the three with export benefit

- Report to develop for filing of ITC-04 from SAP

- Issue of delivery challans against material supplies on Job work
- Further, compliance as per Section 143 (alerts/ reminders)
- To modify the Z reports for filing of new returns
- SAP issue- Single entry is taken for GST amount with different GST rates. Even in some cases, part amount is
eligible as credit and part amount is ineligible

- To be ensured
- Should be through SAP
- Different types of scrap is being generated, sold which have various chapter heading. At present no system is
there for HSN. TCS component is to be factored
- In case of coal , other than GST other taxes are levied like royalty, MMT, TCS, DDMR. Which are not
receorded in SAP

- Majorly our exports are happening under LUT, so any increase or decrease in value will not have any GST
impact. However, the same will have impact at the time of claiming accumulated ITC on exports. Presently,
there is no linking available in the system between commercial invoice, shipping bill, GST invoice and final
commercial invoice.
- Any increase or decrease in value is adjusted by passing FI entry in books without raising any DN/CN. As a
result of which we are facing difficulty in reporting the same into the GST return.
- Moreover bifurcation of FOB, freight, insurance and other charges are not availble readily in the system.

-The due date of payment of GST under RCM is earliest of the following. The date of payment or the date
immediately after 60 days from the date of issue of invoice by the supplier.
- SAP System should ensure to follow above provision. Difference in Fx rate for recording RCM liability & its
payment thereof (manual entries posted for differential entries)
- RCM self invoices are not getting generated via system which needs to generated in case of supply from UR
vendors. Presently controlled through excel.
- Also payment voucher is required to be generated in case of payment to UR

- Advance from customer with specific GSTIN and business place often found adjusted with same customer in
different business place having different GSTIN corresponding to that different location
- No system in place when tax liability on advances received. Entries not being made through tax code
- Moreover in case of advance received for services, advance voucher to be prepared.

- Integration of SAP with E-way bill portal. Logics should be defined wherein pop up should be provided as and
when there is a requirement for E way bill generation. Many errors in E way bill generation has been seen on
account of omission of tax details or error in reporting.

- Linking of transporter's invoice with the goods received vis-à-vis amount appearing in GSTR-2A. Therefore,
RCM amount visible in 2A cannot be matched with the amount reflecting in our 2A.

- Rule 42 reversal is to be done each month on provisional basis. The same needs to be finalised at the year
end. This working is controlled through excel, the same needs to be system driven.

- Automation of IUT transactions

- GST Credit Clearing A/c Interunit transfer
- Inter-units adjustments- GST control
-Composition dealers flagging not available. Solution/ Suggestion?
-GST on free issues to contractors/vendors – to establish control procedures – SOP needed
- Who will ensure that company is complying with the guidelines for availing MEIS, DBK. Who will claim, follow
up and maintain the data of incentives available under FTP – clarification from PWC
- Bill of supply is not getting generated for power sale, rent-water-electricity recovery from employees and
other exempt income.
9045841
Vedanta Limited (Jharsuguda Unit)

S.no Issue

Availment of ITC on coal procured

1
under RCR( road cum rail model)

2 Allocation of common cost

3 KSPL to DTA/SEZ

4 70% and 30% payment

5 Reversal under 42- Unit wise

bifurcation- CPP/IPP

6 SEZ- GST foregone

7 New Returns

Works contract service provider-

8 Godrej/Indfab project-Project
completion invoice vis-à-vis GST
invoice mismatch
9 SEZ invoices
10 DTA Sale from SEZ

11 No commercial credit note vis-à-vis

reductions in sale value

12 Recovery of BG interest from the

customer
13 Freight to Railways

14
Delivery Challan
15 Supply from Lanjigarh to SEZ
16 Service Invoice
Description

We are procuring Coal from PSU like MCL, CCL, SECL etc. Commercial terms is ex-mines. So dispatch from mines to plant is
modes-
1. Road (Truck)
2. Rake ( Rail)
3. RCR ( Road cum Rake)
Since the contract is ex-mines so the coal is received on our behalf by Transporter at mines.

In case of road and rake GST invoice is being received along with the Truck/ Rake.

In case of RCR model the coal is being transported by road via truck from different mines ( around 8 to 10 mines located in
railway sidings which is located around 15-20 km away from mining location and where the coal is being dumped. Coal is b
subsequently from railway sidings to our plant located around 250 Km away from railway sidings shich is done on the basis
well rake capacity.
After the Rake is received at the plant, appropriations is being made to truck GST invoice scientifically. Since there is no dir
invoice vis- a-vis sty received at the plant. Therefore the same is being controlled through excel at present.
Out of total transactions 40% transactions are covered under RCR model ( No of GST invoice is 200 and GST credit id 30 cr)

We have two unit- DTA and SEZ. Credit is taken in DTA. Cost portion is allocated to SEZ on monthly basis as per the agreed
GLS. Which needs to be done in SAP.
The common cost remaining in Plant 1 after allocating to SEZ unit needs to be reversed to the extent of exempt supply.
We have port facility at Kakinada (AP) which is used for import of alumina for Balco, DTA and SEZ. Allocation of cost is don
done in SAP

As per system any payment to be made post approval of different departments like security, HR etc. Due to which there is
in certain contracts is has been agreed to release 70% payment on receipt of invoice and 30% post approvals. In such case
which creates issue for 2A reconciliation as invoice is also booked twice ( 70 and 30) in different months.

Power reversal is done as per rule 42. We have two power units. Unit wise reversal should be calculated as per SAP

In SEZ , GST not paid . To record the GST forgone in SAP

To modify the Z reports for filing of new returns

Invoice as per 2 A and invoice given to Vedanta are different. As in case of works contracts, contractor gives Run
payment as per contracts terms where as different GST invoice numbers are coming for goods and service separ
Procurement invoice of SEZ requires to be endorsed by SEZ officer. No control mechnaism is available
Sale is done against Bill of entry and not by raising GST invoice. For which there is not control mechanism

In case of reduction of value of sales from plant/ depot to customers due to different reasons like due to achievement of q
quarter/ half year/ year end, since the GST has been paid at the higher value, the value is reduced in the books by passing
disturbing the original GST component as the same is creditable to buyer. Corresponding commercial credit note is not gen
same is not being reflected in the GST return. Moreover in the books a single entry is availble in the books against multiple

Interest charged from customers against sale via BG, single entry is passed int the books for multiple invoices. One to one
charged with the multiple invoices is not availble.
Railway issue Railway reciept as tax invoice which bears RR no. along with tax invoice ID. In the SAP, reference to RR no. is
to tax invoice ID whereas in 2A tax invoice ID is appearing. As a result of which we are facing difficulties in mapping our bo
Furhter, there is no correlation between the RR booked and the goods received against those RRs into the system i.e. whe
1 or SEZ unit.
Manual generation of delivery challan in case of goods supplied to job worker.
Manual generation for delivery challan for the movement of alumina from Lanjigarh to BALCO under job work.
The invoice bears only US$ value. No INR value is being captured.
Settled at lower value than the invoice- Original invoice is not recorded in the system
To comment on the feasibility of developing this process in SAP,
we need to understand various business scenarios and logics
currently used by business to map material received with actual
invoices for the purpose of tracking GST credit.

We need to understand why two invoices are created for same

invoice in current practice. Partial payment can be released
within the same invoice.

Even if two invoices are created then we need to understand

reason for creationg second invoice at a later date.

This can be acheieved either by using purchase register/ different

tax code for such purchases.

Based on current discussion, interest calculation program can be

used in SAP to achieve this.
Sr. no
1
Description
Power Reversal on account of Sale of Electricity including that of CG
No specific left
CAIRN OIL & GAS DIVISION
ISSUES/CHALLENGES FACED IN ENSURING GST COMPLIANCES

S.No Challenges faced

SALES

Consolidated sales register is not available from SAP, details need to be extracted
1 from respective GLs & tax codes

Impact due to early closing of books whereby provisional entries are posted during
current month however actual entries are posted in subsequent month with
posting date & document date of subsequent date (Invoice date of current month
2 on phyiscal Invoice raised to Buyers)
3 Entries made in non-operating Income GLs without tax codes
4 Vendor back charge/LD entries for domestic/international vendors

5 Generation of Stock transfers Invoices & recording of tax liability in books

6 Reporting of export of services
7 Recording TDS under GST u/s 51 & availment in books/returns

PROCUREMENTS
Non-deductible tax codes used-detailed process required for segregating credit in
8 case Gas comes under the ambit of GST
GSTN substitution used in POs issued from 9000 company code used in Haryana
9 ( as having 2 registrations, 1 being normal & 2nd as ISD Registartion)
10 Expense entries posted trough V0( i.e NIL tax code)
Reversal of ITC under Rule 39,42 & 43-detailed SOP required before GAS comes
11 under GST
12 WBS/CoST movements -manual entries-GST implication

GENERAL
13 Filing drawback claims with Customs- Would PWC support on this?
14 Calculation of turnover for ISD Return-detailed SOP Required
Reconciliation of GSTR6A with books/ Invoices related to Shared service centre
appearing in GSTR2A of Haryana normal Registration, raising of output Invoices &
15 subsequent ISD invoices.
16 Tackling advances/tds issue in partner function functionality in SAP
Expense GL reconciliation required for department audits-whether tax paid under
17 RCM or not? -Whether PWC would support on this
Remarks

Manual

Manual
User Discipline Issue
Manual

Manual & Solution/Suggestions Sought?

Manual
SOP Required+System changes required

SOP Required+System changes required

Automated but could be an issue

User Discipline Issue

SOP Required+System changes required

SOP Required+System changes required

Need clarification
SOP Required

Manual
Solution/Suggestions Sought?

Need clarification
This can be achieved in SAP by creating consolidated sales register as per
business requirement.

Document date should be the actual invoice date while booking such
invoices after period closing. Document date has to be used for further
GST return filing for such cases.

We need to understand the process in detail and reasons for not creating
in STO Invoice in SAP system in current practice.

Then we can comment on feasibility of doing this process in SAP after

getting better understanding of the process.
Sl.No.

1
2
3

5
6

10

25

28
29
30

31
HZL - Issues
INWARD SUPPLY -ISSUES
Without vendor code and in dummy vendor code payment should be blocked.
State wise PO/SO to vendor and supply check from that state only
Cost allocation through single PO/SO for common Expenses to be stopped
No mechanism for import coal credit, presently taking booked at the time of custom miro(payment) but claimed in
return after received of vessel qty manually.
Identification of common credit at PO/Miro level to automate proportionate reversal for exempted supply
Booking of tax credit in wrong head GL
The invoices are being processed Automatically(without manual checking) by shared services team. Returns being filed
on the basis of GST GL entries. Next month many credit reversed . there is interest implication in return.

OUTWARD SUPPLY-ISSUES
No system to generate credit note for sale return cycle
After 1st April 2018 Due to new GL implementation, as of now GST GL and state wise returns are not tailed with
Financial Trial balance .
Credit Note in case invoice (FI) reversed in next month-Nothing but a accounting document

Linking of invoice (FI) reference in debit/credit notes.

Total SAP documents of S&D module not matched with goods removed and cancelled documents.
No system to make supplementary invoice in S&D module
Invoices are being creating by hitting expense GL instead of turnover GL.
Automated process required to take credit from portal in view of new return format and their reconciliation with books
and portal credit.
Remarks

SAP issue
SAP issue
SAP issue

SAP issue

SAP issue
SAP issue

Hygiene issue

SAP issue

SAP issue (TB based on PC whereas Returns based on BP)

SAP issue

SAP issue

SAP issue
SAP issue
SAP issue

SAP issue
Sl.No. ESL’s Issues
1 PO/WO issued to one location GSTIN but supply made by different GSTN
How ITC of imported goods will be availed after passing B/E if GRN is made at
2 virtual location and complete consignment received in plant in two to three
months - automated process needed
Simultaneous recognition of GST liability under RCM on import of service while
3
making payment or invoice booked – SOP needed
Remarks
Hygiene issue

Manual process & Hygiene

issue

Hygiene issue
Sl.No. Outward Remarks
Debit and credit notes issued against original invoices is not in the
1 SAP Issue
format as per GST Rules
No reports for other incomes like hospital receipts, rent receipts,
2 insurance claim, ground rent and any other sum received on Manual process
account of safety violations.

Sl.No. Inward Remarks

Invoice wise report for procurements made against C-form/under
3 Manual process
VAT

Sl.No. ITC-04 Return Remarks

1 Delivery challan & E-waybill from Mines to Siding Manual process
2 Delivery challan & E-waybill Siding to Lanjigarh Manual process
S. No
1
Issue
In TSPL, ITC can be availed as per Rule 42 wherein proportionate ITC can be availed in respect of our taxable
turnover. Therefore, it is mandatory align SAP logics accordingly.