GST Compliance Invoicing and Agency Incentive Systems

Introduction to the project:

The client is an Indian airline, which operates flights on both domestic and international routes. They are using the Navitaire software for ticket booking which is the most popular POS platform made by Amadeus and used by airlines across the world.

When the government introduced the GST law, all airlines were required to GST compliance invoicing. GST customization into the Navitaire system would be a very expensive prospect for the client.

We proposed the implementation of keeping Navitaire as it is as the base system for the Indian arm and the development of satellite systems around it.

One of the satellite systems developed was for GST compliance invoicing and revenue accounting, which is the focus of this case study.

Challenges faced while developing GST compliance invoicing

Regulatory changes in the government’s taxation format made it mandatory for all airline companies to incorporate GST into their business.

GST has complex rules and in the airline space, it is still evolving. We already had experience in this space with another airline when GST was first introduced in 2017, which was useful for us to guide this airline with its GST compliance invoicing journey.

We needed to make sure that GST was configured into every aspect of their business, including inter-state bookings, intra-state travel, meal services, extra baggage, and so on.

All variations including those between B2B and B2C had to be included in the system.
Incorporating GST into the Navitaire booking system would require customizations which would be a huge expense.

Key requirements

The project brief was to develop two systems around the airline booking system – one for GST compliance invoicing, filing, and revenue accounting, and the second for automating booking agent incentives, invoicing, and payout.

Both systems were to be integrated with the core ERP system they were using across all business functions.

Solution design

To meet the requirements, Bitkraft developed a GST compliance invoicing system, where its rules are set up. The system is based on Navitaire data, which is used for invoicing.

Filing System

Invoicing System

It takes data inputs of daily ticket bookings and uses this data to calculate rates according to intra-state – inter-state travel, baggage, meal services, etc., and create the invoice.

GST Rules and taxation laws are all incorporated into the system so that the invoice is generated after the application of GST rules.

Most importantly, Bitkraft built the system so configurable that any changes (in GST rules) could be easily incorporated into it. The system is built to integrate seamlessly with their ERP system.

The daily ticket booking data is processed on the same day. Within two days, all invoices are generated, filed, and emailed to customers. The system is built to serve both B2B and B2C customers.

It provides real-time data and also GST number validation.

Besides a dashboard has been created which gives a summary of the entire data, this would aid the company in GST compliance invoicing. Also, financial reports are generated which can help in addressing any queries.

Reports

All the data is available at the click of a button and therefore the client saves many precious data extraction hours.

Advantages to the client

Saves time due to automated processing of data, what would earlier take 4 days can now be done in 4 hours.
Made at a fraction of the cost as compared to what the customization fee would be for Navitaire.
Dashboards give comprehensive regular reports which help in compliance.
Makes data extraction easy and therefore aids data reconciliation among financial processes.
Highly secure because data can be accessed only by authorized users.
It integrates seamlessly with its ERP system.
Provides Real-time status on GST Invoice generation, filing, and other reports for tax compliance and revenue assurance.
Automated GST filing of invoices and credit notes to the government portal through a GSP API.
Integrates with multiple of their existing systems including the flow of data into the incentive system.

In the next post in this series, we will explore the automation of the agency incentive and payout system developed by Bitkraft for the Indian airline company.

We will delve into the challenges faced by the airline in managing their incentive payouts manually and how the implementation of the automated system streamlined their processes, reduced errors, and provided real-time data for better decision-making.

In conclusion, Bitkraft’s implementation of the GST compliance invoicing and revenue accounting system for the Indian airline company has resulted in significant improvements for the client.

By utilizing Navitaire data and incorporating complex GST rules and taxation laws, Bitkraft has created a highly configurable invoicing system that generates invoices, files them, and emails them to customers within two days of ticket bookings.

This system saves the client a significant amount of time and resources and is highly secure. The use of advanced technology, such as GSP API, makes the system built by Bitkraft a robust one, providing a reliable solution for the client’s complex requirements.

Overall, this case study serves as an excellent example of how automation and advanced technology can help businesses improve efficiency and save valuable time and resources.