IDBI Federal Life Insurance partners with SunTec to roll out GST

GST

SunTec, which partners with global financial services organisations to increase the lifetime value of their customer relationships through effective revenue management and customer experience orchestration, today, announced its partnership with the IDBI Federal. Through this win, SunTec will facilitate in computing and invoicing of Debit tax and Credit Tax for the financial institution.  This announcement comes at a crucial juncture where the country will roll out the GST Act by the 3rd quarter of the calendar year.

SunTec’s Xelerate for GST is uniquely designed to be an over-the-top (OTT) solution which can easily integrate into the IDBI Federal’s existing IT Landscape. This ‘out-of-the-box’ solution can be nimbly configured and will enable banks and financial institutions become GST ready in just 30 days.

As a part of the agreement, for the Debit Tax mandate SunTec will help in analysing data from various sources for tax computation and invoicing purposes including tax segregation, tax accounting, generating tax invoice and all process involved in data filing for return management. The Credit Tax Scope would involve extraction of expense information in the computation of input services, computation of input tax credit, calculation of reverse charge tax, inter-branch transactions, invoicing and taking the date to GST extracts.

Commenting on the customer win, K Nanda Kumar, CEO at SunTec said, “We are glad to be the partner of choice for IDBI Federal in their journey to GST Compliance. Banks and financial institutions, over the years, have acquired multiple backend systems to meet business requirements across channels. However, the complexity that comes in by offering customised service offerings across various businesses and the subsequent regulatory compliance requirements, have made it difficult for financial services organizations to manage changes. Xelerate to GST has been designed specifically to ensure that our customers find it convenient to become GST compliant with least amount of interference to their existing infrastructure and carry on with business as usual.”

“We are happy to partner with SunTec and look forward to becoming GST Compliant as soon as the taxation is rolled out. Given the diverse business portfolios it becomes crucial for us to ensure that all taxation related data is computed and analysed with accuracy so as to ensure smooth business operations and keep issues of double taxation in check.” said Kedar Patki, Chief Financial Officer, IDBI Federal Life Insurance

The GST ACT is all set to transform India’s tax system. It is lauded to be the biggest tax reform ever since Independence which will replace layers of federal and state taxes to one single and unified tax. It is but obvious that all industries will get affected by this, banking and financial services would also be incrementally impacted as level of compliances will see dramatic augmentation under GST. Companies with PAN India presence will likely see manifold increase in compliances because of the varied nature of businesses. It is imperative to streamline operations and the need to initiate necessary action so that service offerings are not compromised and the financial institutions maintain the competitive edge.