Background
UrbanKart Technologies is a D2C home furnishings brand operating across India with GST registrations in 12 states. With over 800 active vendors and monthly procurement of ₹4-6 crore, their compliance team faced an enormous reconciliation challenge.
The Problem
Every month, UrbanKart's 3-person accounts team spent 15 working days trying to reconcile their purchase registers with GSTR-2B across 12 different GSTINs. The process involved:
- Downloading 12 separate GSTR-2B reports
- Cross-referencing with vendor invoices manually
- Sending follow-up emails to non-compliant vendors
- Tracking responses and re-reconciling
The result? Approximately ₹1.5-2 lakh in ITC was being missed every month due to missed reconciliation windows and vendor non-compliance.
Our Approach
Phase 1: Complete ITC Audit (Week 1-2)
We ran a comprehensive audit of the last 18 months across all 12 GSTINs. Our system identified:
- ₹18.4 lakh in unclaimed ITC from vendor mismatches
- 340 vendors with consistent invoice uploading issues
- 12 vendors whose GSTIN registrations had lapsed (blocked ITC)
Phase 2: Vendor Remediation (Week 2-4)
We sent structured communication to all 340 vendors with:
- Specific invoice details missing from GSTR-2B
- Deadline for correction
- Escalation process for non-responsive vendors
Result: 82% of vendors corrected their filings within 21 days.
Phase 3: Amended Return Filing (Week 4-6)
Filed amended GSTR-3B returns for all eligible months to claim the recovered ITC.
Results
| Metric | Before | After |
|---|---|---|
| Monthly reconciliation time | 15 days | 2 days |
| Vendor compliance rate | 60% | 94% |
| Monthly ITC leakage | ₹1.5-2L | Near zero |
| Accounts team bandwidth freed | 0% | 60% |
Client Testimonial
"We knew we were losing ITC but had no idea it was ₹18 lakh. TaxEasyy's systematic approach recovered it all and set us up with a process that prevents future leakage."
— Karan Mehta, CFO, UrbanKart Technologies