Problem Statement:

Under Section 16(2)(c) of the CGST Act, taxpayers can claim Input Tax Credit (ITC) only if the supplier’s GSTR-3B is filed. However, the GSTR-2B data available to businesses lacks real-time updates on the latest GSTR-3B filing status, potentially leading to incorrect ITC claims, compliance risks, and financial losses. Additionally, businesses often struggle to keep track of the GSTIN status, filing frequency, and trade names of their suppliers, further complicating the compliance process. This is where automation can play a critical role, reducing manual effort, minimizing human error, and ensuring accurate ITC claims.

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Why Use Selenium VBA for GST Compliance?

As finance professionals, most Chartered Accountants are comfortable working in Excel. Selenium VBA harnesses this familiarity while adding the capability of web automation. The primary advantage of this approach is that it eliminates the need for high-level programming knowledge, making automation accessible to CAs who may not be familiar with coding in Python or other languages. In the era of AI-driven vibe coding, utilizing Selenium VBA becomes even more intuitive and user-friendly.

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Process to Develop the Tool:

Developing this automation tool involves the following steps:

1.         Install Selenium Basic 2.0.9.0: Download and install the Selenium Basic library, which serves as the backbone for integrating Selenium with VBA in Excel.

2.         Download Matching Chrome Driver: Download the ChromeDriver executable that matches your Chrome browser version to enable browser automation.

3.         Refer VBA Module as Selenium Type Library: In the VBA editor (ALT + F11), go to Tools > References and select Selenium Type Library to enable Selenium in your VBA project.

4.         Save Webpage Source as HTML: Right-click the target webpage, select View Page Source, and save the file as .html. This file will be used for extracting elements using vibe coding.

5.         Vibe Code using the HTML File: Upload the saved HTML file to ChatGPT or another LLM. Provide specific prompts to extract element details, generate XPath or CSS selectors, and develop the required VBA code.

6.         Copy Code to VBA Module: Paste the generated code into the VBA module, run it, and refine as needed based on test results and error handling.

7.         Test, Run, and Optimize: Conduct trial and error to fine-tune the script, handle exceptions, and ensure the automation is robust and reliable.

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Key Features of the Automation Tool:

•           Automated GSTR-3B Status Verification: Automatically fetches the latest filing status to ensure ITC eligibility.

•           Real-time GSTIN Status Check: Identifies whether a supplier is active, cancelled, or suspended.

•           Filing Frequency Detection: Determines whether the supplier follows a monthly or quarterly filing frequency.

•           Trade Name Extraction: Automatically pulls trade names for easier identification.

•           Financial Health Check: Allows tracking of financial stability for better risk management and supplier selection.

•           Preventive Risk Assessment: Detects potential red flags like filing delays or GSTIN cancellations to mitigate risks.

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Impact:

•           Improved ITC Accuracy: Minimizes errors in ITC claims by automating verification.

•           Reduced Compliance Risk: Early identification of non-compliant suppliers helps avoid penalties and future trade transactions.

•           Time Efficiency: Automates repetitive tasks, allowing professionals to focus on strategic work.

•           Strengthened Supplier Relations: Facilitates accurate payments and better compliance tracking.

•           Proactive Risk Management: Acts as an early warning system to flag potentially risky suppliers, reducing exposure to financial disruptions.

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Conclusion:

Automating GST compliance using Selenium VBA bridges the gap between manual processes and efficient, error-free compliance management. It not only enhances accuracy but also optimizes resource utilization by reducing manual intervention. Additionally, this approach provides insights into the financial health of suppliers, helping businesses decide whether to continue transacting with specific suppliers based on their compliance behaviour. Through this innovative approach, Chartered Accountants can effectively manage GST compliance while leveraging the power of AI-driven vibe coding to simplify automation.