Pharma, bio tech & life sciences

The client wanted to examine and review annual GST compliances to identify any non-compliances, process gaps, and scope for improvement.

We reviewed the client's compliance processes to identify lapses in procedures, positions, and documentation. We implemented controls to prevent the misuse of input tax credits (ITC) across states and to ensure timely issuance of credit notes. Our team also improved controls and processes for documenting and calculating ITC reversals related to sample destruction and distribution. Additionally, we identified unclaimed ITCs eligible under GST law, improving the client’s working capital efficiency.

The efficiency of the client’s compliance process improved, building tax efficiency in their entities and reducing the cost borne by them due to non-compliance and lapses in the process.

While performing their day-to-day compliances under the erstwhile indirect tax regime and later on with the advent of Goods and Services Tax (GST) law w.e.f. 1 July 2017, a fortune 500 pharmaceutical company was looking for a one-point solution provider for their numerous complex challenges such as filing of VAT/ GST returns, their ongoing assessments and litigations and other indirect tax domain pursuits.

Our experts initially guided the client through comprehensive compliances under the previous tax regime, improving their complex data collation processes, and later expanded our role to include assessments and litigation support. With the introduction of GST, we conducted an impact analysis and anti-profiteering review for their major products in India. As their ongoing indirect tax consultant, we provided regular transactional advice, helped secure export incentives like SEIS duty credit scrips and GST refunds, obtained EDD refunds, and achieved successful resolutions in various litigation cases across VAT, Customs, and Service Tax with minimal demands.

The client was able to streamline their ERP and IT systems, enabling a hassle-free process of filing GST returns and issuance of e-invoices under GST. Further, our prompt proposition led to the successful closure of numerous litigations and has positioned us as the go-to tax partner for the client.

The client, as part of their growth strategy, was executing a large finance transformation (FT) programme with multiple initiatives. In this regard, they wanted expertise in data architecture with profiling and modelling capabilities to support the delivery of selected FT data objectives. Areas: Data profiling, modelling and quality improvements.

Our team quickly began working on the transformation programme which was mid-way. Engagement was initiated with global stakeholder groups to identify the modelling requirements for open item matching and balance sheet quality. Our project team developed the detailed model for open item matching position at the migration of live data into the new blackline tool for the R2R Blackline project. Project responsibility also included designing and delivering balance sheet quality modelling, reporting documentation, and reusable modelling tool. We established R2R data KPI reporting and enhancements in line with modelling requirements and ensured transparent reporting. We provided a refined modelling solution to cover extended transactional data profiling for wider R2R transactional data quality improvements. The key to success was the collaboration by the Grant Thornton Bharat team across the FT data service organisation to establish and guide profiling and modelling best practices.

In 12 Months, our team delivered the engagement expectation along with a detailed reusable data model for balance sheet reconciliation, improving accuracy and efficiency. The data model to capture the difference in volume between FI and SPL to improve planning accuracy was also completed with risk elements embedded in the design. The outcome also enabled the transaction matching model to further enable automated reconciliation for business.