Introduction: GST Compliance, From Manual Burden to Automated Excellence
Filing the Goods and Services Tax in India is something that businesses have to do by law under the CGST Act, 2017. For most companies the Goods and Services Tax compliance is a complicated and lengthy process that is prone to mistakes. The Goods and Services Tax return filing is difficult because businesses have to deal with a lot of information, tight deadlines and matching invoices.
The rules for the Goods and Services Tax also change a lot, which makes it even harder for companies, with a lot of transactions to file their Goods and Services Tax returns.
This is where SAP ERP, combined with SEPFUST Solutions’ SAP GST Cockpit, transforms GST compliance into a seamless, automated, and audit-ready process.
In this blog, we explain:
- The end-to-end GST return filing process
- Challenges faced by businesses
- How SAP automates GST returns
- Role of GST Portal, ASP, and GSP
- How SEPFUST SAP Cockpit simplifies GST compliance
- A real-life SAP GST automation case study
Understanding the GST Return Filing Process Under CGST Law
Legal Framework
The rules, for filing the Goods and Services Tax return are decided by things.
GST return filing is governed by:
- Section 37 of CGST Act, 2017 – Furnishing details of outward supplies (GSTR-1)
- Section 38 – Auto-generated inward supplies (GSTR-2B)
- Section 39 – Monthly/Quarterly returns (GSTR-3B)
- Rule 59 & Rule 60 of CGST Rules
Every person who is a registered taxpayer must make sure that they do what is required of them as a taxpayer. Every registered taxpayer has to follow the rules that apply to registered taxpayers.
- Accurate invoice reporting
- Timely filing
- Reconciliation with government data
- End-to-End GST Process: From Invoice Creation to GSTR-1 Filing
Step 1: Invoice Creation in SAP ERP
The Goods and Services Tax journey begins when you create an invoice. This is where the Goods and Services Tax process really starts. You have to think about the Goods and Services Tax from the beginning, which is when you make an invoice for something.
- Sales invoices (SD Module)
- Purchase invoices (MM/FI Module)
SAP captures:
- GSTIN of supplier & recipient
- HSN/SAC codes
- Tax rates (CGST, SGST, IGST, Cess)
- Place of supply
Any error at this stage leads to downstream reconciliation failures.
Step 2: E-Invoicing Integration with SAP
For applicable taxpayers (as notified under Rule 48(4)):
- The company uses a system where invoices are sent from SAP to IRP. This is how they do it. Invoices are pushed from SAP to IRP.
- They got the IRN and the QR code and also the acknowledgment. The IRN is there. So is the QR code. I have the acknowledgment.
- The information goes to the GST Portal automatically for the GSTR-1. This means that people do not have to do anything for the data to get to the GST Portal for the GSTR-1. The data just gets sent to the GST Portal for the GSTR-1 on its own.
The SEPFUST SAP Cockpit makes sure that the SEPFUST SAP Cockpit is really helpful. It does a lot of things. The SEPFUST SAP Cockpit is very useful because it helps people with the SEPFUST SAP Cockpit to do their jobs better.
- Real-time e-invoice status tracking
- Error handling & retries
- IRN mismatch resolution
Step 3: E-Way Bill Automation
For movement of goods:
The SAP system helps to create an e-way bill. This is an useful feature of the SAP system because it makes the process of generating an e-way bill a lot easier. The e-way bill is generated by the SAP system. This means that people who use the SAP system do not have to do it. The SAP system does it for them. It is a help to have the SAP system generate the e-way bill.
We have all the details about the vehicle, how far it is going and the information, about the transporter. The vehicle details are captured the distance it will travel is. The transporter data is also recorded.
The SEPFUST Cockpit enables you to do a lot of things. It is a tool that helps people. The SEPFUST Cockpit is very useful. With the SEPFUST Cockpit you can do tasks. The SEPFUST Cockpit is made to make work easy.
- Invoice ↔ E-Way Bill linkage
- Expiry alerts
- One-click regeneration
Step 4: GSTR-1 Data Preparation in SAP
SAP is putting things together. Making them into one unit. The company SAP does this to make things more simple and easy to manage. SAP makes sure that all the different parts of the business are working together. This is what SAP does when it consolidates.
- B2B, B2C, Export, Credit/Debit notes
- HSN summary
- Nil-rated & exempt supplies
- SAP GST reports are generated automatically—ready for reconciliation.
GST Reconciliation: The Biggest Compliance Challenge
Reconciliation Points
| Source | Data Compared |
| SAP vs E-Invoice | Invoice-level validation |
| SAP vs E-Way Bill | Quantity & value |
| SAP vs GST Portal | GSTR-1 vs Portal Data |
| GSTR-2B vs Books | ITC eligibility |
Common Challenges
- Missing invoices in GSTR-1
- Duplicate IRNs
- Tax mismatch due to rate/config issues
- Manual Excel reconciliations
- Last-minute firefighting before due dates
How SAP Automates GST Returns with SEPFUST GST Cockpit
SEPFUST SAP GST Cockpit – A Centralized Compliance Engine
SEPFUST provides a custom SAP GST Cockpit that sits within SAP ERP and acts as a single control tower for GST compliance.
Key Automation Features
- End-to-End GST Automation
- Invoice to return lifecycle tracking
- Real-time GST status dashboards
Automated Reconciliation
- SAP vs GST Portal
- SAP vs E-Invoice & E-Way Bill
- Exception-based reporting
- One-Click GSTR-1 Filing
- Validated data pushed to GST Portal via ASP/GSP
- Reduced dependency on offline utilities
Role of GST Portal, ASP, and GSP Explained
GST Portal
- Government portal for return filing and compliance
- Source of GSTR-2B, filing acknowledgments
GST Portal Link - https://www.gst.gov.in/
ASP (Application Service Provider)
- Prepares, validates, and reconciles GST data
- Ensures schema-level compliance
GSP (GST Suvidha Provider)
- Authorized API connector with GST Portal
- Secure data transmission
SEPFUST integrates SAP directly with certified ASP & GSP, enabling:
- Secure API-based filing
- Real-time acknowledgments
Error messages within SAP itself
- Automated GST Due Date Reminders & Compliance Alerts
- Missing GST deadlines leads to:
- Late fees (₹50/day)
- Interest @ 18%
- ITC blockage
SEPFUST SAP Cockpit Reminder System
- GSTR-1, GSTR-3B, E-Invoice cut-off alerts
- Role-based email & SAP notifications
- Pending action dashboards for finance teams
No more manual calendar tracking. SAP reminds you.
Real-Life Case Study: SAP GST Automation for a Large FMCG Company
Client Profile
- Multi-state FMCG manufacturer
- 1.5+ lakh invoices/month
- Multiple GST registrations
Challenges
- Manual GSTR-1 preparation
- Frequent mismatches with e-invoice data
- Delayed filings and notices from department
SEPFUST Solution
- Implemented SAP GST Cockpit
- Automated e-invoice & e-way bill reconciliation
- Direct GSTR-1 filing from SAP
Results
- 90% reduction in manual effort
- Zero GST notices post-implementation
- Filing completed 3 days before due date
- Complete audit trail within SAP
Read in detail - Case Study
