Customer Story
Alfa Laval Transformed their End-to-End GST Compliance with Sovos India 10x Faster
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Revenue
Employees
Industry
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Benefits
Overview
Alfa Laval is a global leader in heat transfer, separation, and fluid handling technologies, providing innovative and high-quality solutions to critical industries such as energy, environment, food, and marine.
With a strong focus on sustainability, the company goes beyond addressing current industrial needs by developing solutions that contribute to a cleaner and more efficient future. Operating in over 100 countries, it combines global expertise with a strong local presence to effectively serve its customers.
In India, Alfa Laval operates through multiple GSTN registrations, including ISD registrations, serving customers both directly and via a widespread distribution network across the country.
The Challenge
- ERP Integration for E-invoicing: Due to IT policy restrictions, The ERP system could only generate TXT files, while e-invoicing required JSON format. The ERP system has its own limitations to capture and map all the fields required under the e-invoice schema as per GSTN framework, further complicating compliance and automation efforts.
- GSTR1 Filing Process: Prior to E-invoicing, GSTR-1 data was shared multiple times for different periods in customized formats for user convenience and easier analysis. However, repeatedly converting this data into GST-compliant formats for filing made the process time-consuming and operationally inefficient.
- Excel-Based Reconciliation, ITC Mismatches & Complexity: The manual Excel-based reconciliation process risks such as file corruption, time-consuming vendor-level matching, impacting data integrity and slowing compliance workflows.
Tracking invoices for Input Tax Credit (ITC) claims was also challenging, leading to frequent mismatches and making annual return filing complex and time intensive. Additionally, reconciliation issues arose due to differences in counterparty GSTINs under the same PAN between purchase and supplier invoices. - Historical Data Discrepancies: A GST audit for FY 2018–19 revealed that ITC reported in GSTR-3B exceeded government auto-populated figures, indicating calculation errors and invoice mismatches. It helps a comprehensive review of records from the inception of GST in 2017 to ensure accurate and consistent reconciliation.
The Solution
ERP Integration Solutions for E-Invoicing
A secure and scalable pipe-separated TXT file integration framework was designed to overcome ERP limitations:
- Automated ingestion of TXT files from ERP
- Folder-based workflow with Open, Success, and Failure stages for process control
- Built-in validation and error handling for data accuracy and compliance
- Automated seamless file movement for IRN generated invoices only from Success folder to Import Folder for data accessibility
- Automated email notifications for real-time IRN status tracking
Simplified GSTR1 Return Preparation through Smart Automation
By implementing Sovos India’s Indirect Tax Compliance Suite integrated with the e-Invoicing solution, GSTR-1 data is readily available in GST-compliant formats, eliminating repetitive processing as consolidated data is available. Enhanced GSTR-1 reports are prepared providing the section-wise details (B2B, B2C, etc.) to enable easy comparison between our and GSTN summaries. This resulted in a 10x reduction in GSTR-1 return preparation time and effort.
Automated Reconciliation with Predefined Rules & Data Accessibility
An automated system driven rules improved ITC accuracy to 98% approx. The reconciliation data is easily accessible for analysis, with download options available at both invoice and vendor levels, enabling to review and extract insights at any time with a clear and comprehensive data view.
Additionally, the GSTR-3B marking feature enhanced ITC tracking of invoices and significantly streamlining reconciliation and simplifying annual return filing processes. Additionally, reconciliation reports helped identify discrepancies such as differing counterparty GSTINs under the same PAN and variations in document types, enabling accurate reconciliation and maximizing ITC availment.
Resolution of Historical Data Discrepancies:
As a part of managed services a detailed analysis was performed for FY 2018-19 and identified discrepancies which helped the company understand the root causes behind variances, enabling stronger compliance and more confident audit responses. Through Sovos India’s Managed Services, historical GST data was reconciled right from the start of the GST regime in 2017.
Seamless ERP Integration and Timely Return Filing:
With the ERP now integrated with Sovos India’s platform, e-invoice data flows in without manual intervention and all returns are filed accurately and on time.
End-to-End Managed Services:
Sovos India also provides managed services covering GSTR-9 computation, ITC matching, and monthly reconciliations, ensuring complete compliance support beyond just software.
The Results
- ERP Integration Benefits for E-Invoicing: The solution enables end-to-end automation by converting TXT files into API-ready JSON through rule-based transformations, with built-in validations ensuring data accuracy and compliance. It eliminates manual intervention, allowing seamless data flow and significant time savings across multiple GSTINs.
- Faster Return Filing, Every Month: GSTR-1 return preparation time and effort reduced by 10x due to seamless availability of data through integration of Compliance Network with Sovos India’s Indirect Tax Compliance Suite. Manual data extraction and formatting have been eliminated, enabling accurate and timely filing of returns every month. What began as a complex compliance challenge with multiple GSTINs and a vast distribution network has evolved into an efficient, reliable, and future-ready compliance operation powered by Sovos India.
- Increase in ITC & Improve Invoice Tracking: The shift from manual Excel-based reconciliation to an automated, rules-driven platform improved ITC efficiency to 98% approx. Vendor-level reconciliation once a tedious and risk-laden process, gave way to precise invoice-level reconciliation, making year-end processes significantly less stressful and far more reliable. With GSTR-3B marking in place, the team can effectively track all invoices against which ITC is claimed, eliminating mismatches that previously complicated annual filings and strengthening audit readiness.
- Historical Data, Finally Resolved: Through Sovos India’s Managed Services, historical compliance data was reconciled all the way back to 2017, the very start of the GST regime. The detailed analysis of FY 2018-19 discrepancies not only resolved a standing audit query but also gave the team a clear understanding of past variances, enabling more confident and accurate compliance going forward.
- Seamless ERP Integration, Zero Manual Uploads: The customized integration with their Movex ERP system, eliminated the need for repeated manual data extraction and uploading. Monthly data now flows directly into the platform for e-invoicing without any friction, saving considerable time and effort across multiple GSTIN registrations.
- One Platform, Complete Compliance: From e-Invoicing and e-way bill management to GSTR-9 computation, ITC matching, and monthly reconciliations, everything is managed within a single, unified platform. The company now has real-time access to both invoice-level and vendor-level data at any time, giving the finance team full visibility and control over their compliance health.
Why Sovos?
Following a positive recommendation, the company chose Sovos India as their preferred GST compliance partner. With a complex compliance landscape spanning multiple GSTINs, multiple locations, and a large distribution network, they needed more than just software. They needed a trusted partner that could bring both technology and expertise to the table.
Sovos India stood out for our customized managed services, flexible ERP integration capabilities, and powerful reconciliation tools. From day one, it felt less like a vendor relationship and more like a partnership built on responsiveness, expertise, and a genuine willingness to go the extra mile.
The relationship began with core GST compliance and grew naturally from there. When the e-invoicing mandate was introduced in 2020, Alfa Laval expanded their usage to include e-way bill management and e-invoicing as well. Today, they rely on Sovos India’s complete indirect tax compliance suite, covering GST compliance, e-invoicing, and e-way bill management, all backed by managed services for reconciliation, return preparation, and filing.