Enhanced Supplier Tracking & Compliance Insights

ExpressGST || Enhanced Supplier Tracking & Compliance Insights

We are pleased to introduce an advanced Supplier Liability Tracking capability designed to strengthen supplier compliance monitoring and support more informed business decisions.
With this enhancement, users can now analyze the percentage of tax liability discharged by suppliers based on their GST filing data. This provides deeper visibility into supplier filing and payment behavior, enabling organizations to evaluate vendor compliance levels and identify potential risks associated with Input Tax Credit (ITC) claims.
The feature is integrated within the reconciliation framework and helps businesses proactively monitor supplier compliance, reduce reconciliation risks, and improve overall GST governance.

Key Benefits
  1. Supplier-Wise Liability Visibility - Gain clear visibility into the percentage of tax liability paid by each supplier directly from the reconciliation dashboard.
  2. Early Detection of Compliance Risks - Identify suppliers who are partially compliant or non-compliant at an early stage to minimize ITC-related risks.
  3. Improved Vendor Evaluation - Assess supplier reliability based on actual filing and payment behavior available on the GST portal.
  4. Better ITC Risk Management - Reduce the likelihood of ITC reversals, notices, and reconciliation discrepancies through continuous compliance tracking.
  5. Data-Driven Decision Making - Take proactive business decisions using real-time supplier compliance insights.

Supplier-Wise Reconciliation – Liability Tracking Feature
The Supplier-Wise Liability Tracking feature provides detailed visibility into supplier tax payment status based on GST filing information. It enables users to evaluate supplier reliability and compliance directly from the reconciliation dashboard.
Using this feature, organizations can identify whether suppliers are:
  1. Fully compliant with tax payment obligations
  2. Partially compliant
  3. Potentially high-risk from an ITC perspective
This functionality significantly improves supplier compliance monitoring and enhances reconciliation accuracy.

Navigation Path
Access the “Books vs 2A/2B Annual” Module
  1. Navigate to the Books vs 2A/2B Annual section within the application.



  2. Select the Supplier Wise Reco option available under the module.



  3. The system will display supplier-level reconciliation and liability analysis details.

Key Dashboard Highlights
1. Compliance Status Overview
The dashboard classifies suppliers based on their GST registration status:
  1. Active GSTINs
  2. Suspended Suppliers
  3. Inactive Suppliers
      

This provides immediate visibility into supplier operational and compliance status.

2. Liability Classification
Suppliers are categorized according to their liability payment performance:
  1. Liability ≥ 100%  → Indicates suppliers who have fully discharged or exceeded their tax liability obligations.
  2. Liability < 100%  → Indicates suppliers with partial compliance, requiring further review and follow-up.
This classification helps identify vendors that may impact Input Tax Credit eligibility.

3. Tax Difference Analysis
The dashboard provides detailed reconciliation insights through the following indicators:
  1. Total Taxable Difference
  2. Total Tax Difference
  3. Books Tax vs 2B Tax Comparison
These analytics help identify discrepancies between Books data and GST portal records.

4. Matching Status Visibility
Supplier transactions are categorized into the following reconciliation statuses:
  1. Matched → Records are fully reconciled between Books and GST portal data.
  2. Partially Matched → Minor mismatches exist between the compared records.
  3. In 2B Only → Records are available on the GST portal but not present in Books.
  4. In Books Only → Records are available in Books but missing from GST portal data.
This classification helps users quickly identify reconciliation gaps and data inconsistencies.

5. Average Liability Percentage
The Avg % Liability column displays supplier-wise liability payment percentages, enabling:
  1. Better compliance monitoring
  2. Supplier risk evaluation
  3. Improved vendor assessment and follow-up
      

Note: Users can also download the supplier-wise liability details in Excel format using the Download option available within the dashboard.

      

Business Advantages
✔ Strengthens supplier compliance monitoring
 ✔ Enables proactive identification of high-risk vendors
 ✔ Minimizes the risk of ITC reversals and GST notices
 ✔ Enhances reconciliation transparency and accuracy
 ✔ Supports informed vendor management decisions
✔ Improves overall GST compliance governance

Recommended Best Practices
It is recommended to regularly review suppliers with:
  1. Liability percentages below 100%
  2. Frequent partial reconciliation matches
  3. Significant tax differences
Timely communication and follow-up with such vendors can help ensure better compliance management, reduce reconciliation risks, and safeguard Input Tax Credit eligibility.

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