HDFC Securities needed to upgrade IT systems and business processes for GST compliance
In July 2017, the Indian government introduced the Goods and Services Tax (GST), replacing the existing indirect taxation system. This sent companies across the country scrambling to realign existing business processes and IT systems with the new regulations. Apart from maintaining jurisdiction demarcations for all transactions, HDFC Securities Ltd. (HSL) needed a solution for storing GSTN numbers state-wise, and bifurcating GST components based on prescribed guidelines.
Keeping these requirements in mind, HSL partnered with TCS BaNCS to deploy a flexible platform that could help them reduce the time to market while fulfilling all compliance requirements.
TCS BaNCS enables HDFC Securities Ltd. to meet GST rollout deadline.
. Backed by an extensive understanding of capital markets and indirect taxation norms, TCS BaNCS for Securities Trading (which was deployed at HSL the year before) was customized to tackle the various nuances of GST workflows and compliance requirements such as reproducing contract notes in pre-defined stationery format.
TCS BaNCS helped HSL integrate back-office processes with the global order management and accounting systems, streamlining the method for calculating input tax credits and creating contract notes for facilitating audits and reconciliations.
With TCS BaNCS for Securities Trading, HSL was able to:
Establish the equivalent of a state-wise transaction ledger
Enable its customers to update their GSTN
Accurately capture and quote central, state, and integrated GST amounts
Create comprehensive reports for identifying instances of excess GST payment and collection
Handle accounts receivable and payable in line with regulatory guidelines