Tax Technology

Vendor management

Evolving tax laws necessitate greater control over vendor compliances

A PwC India product

  • Buyer’s Goods and Service Tax (GST) credit contingent upon suppliers’ compliance – e-invoice, invoice reporting in GST returns, etc.
  • Limited time available for monthly reconciliation and issue resolution cumbersome process involving multiple stakeholders
  • Impact on business continuity if e-way bill status of vendors is blocked
  • Higher withholding implications if a vendor does not file corporate tax returns

Using technology to make vendor management more effective is essential in today’s tax environment.


Do you have reasonable visibility into blocked credits for your organisation?

Are you tracking vendors who default?

How effective is your reconciliation issue resolution mechanism?

Do you perform vendor tax-risk profiling as part of the selection process?

Managing vendors effectively from the tax perspective – the PwC way

Layer 1: Master-level controls
Real-time/batch mode validation of GSTIN for accuracy and compliance status (optional backward integration with ERP)

Layer 2: Transaction-level controls

  • Tracking invoice validity for QR code
    Validating invoices from e-invoice perspective
    Leveraging information in ERP for invoice processing
  • Performing vendor reconciliation
    Performing auto-reconciliation in Navigate GST for subsequent actions
  • Vendor communication
    Two-way vendor communication (through Navigate GST) to resolve reconciliation issues
  • Automating actions based on reconciliation status
    Retention/debit/release of payment in ERP
    Credit transfer from interim to final account

Layer 3: Analytics and insights

  • Dashboards/reports to gain insights into exceptions
  • Trends for reporting and decision-making (e.g., aging analysis, vendor scorecard)


Real-time/periodic monitoring of vendor compliance status


Streamlining vendor follow-up mechanism to reduce manual effort


Ensuring working capital advantages by payment blocks for non-compliant vendors


Timely and accurate tax compliances with respect to GST credits/TDS


Actionable insights related to vendors or transactions that merit focus


Vendor Management

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Product Owners

Manpreet Singh Ahuja | Chief Digital Officer - PwC India

Aman Goel | Managing Director and Digital Products Leader - PwC India