Manufacturing and Exporters

Context

The company makes precision components for export and runs six plants in four states. Engineers and quality teams travel often for customer audits and plant visits, and plans change at short notice. Tickets are rebooked, cancelled and changed far more than at most companies.

The Challenge

Each cancellation or change produces an airline credit note that reduces the credit on the original ticket. From October 2025, credit notes also need action in IMS. The company claimed credit on the original invoices but had no process for the credit notes, so its claimed credit was higher than it should have been in some months and lower in others.

The statutory auditor flagged airline credit as an area of risk. The finance team needed a clean, defensible position before the year closed.

What We Did

We pulled every airline credit note for two financial years and traced each one to its original invoice, ticket and GSTIN. Each pair was checked against what had been claimed and reversed in GSTR-3B.

Specialists sorted the results into credit to reverse, credit still available to claim, and credit notes issued to the wrong GSTIN. The finance team approved the adjustments in one review meeting.

The Outcome

The audit corrected the airline credit position by ₹42 lakh: some over-claimed credit was reversed before a notice could arise, and credit notes issued in error were cancelled by airlines so the original credit could stand.

The company now receives a credit note register each year, and its auditor accepted the reconciliation as support for the airline credit balance.

Timeline

1. Weeks 1–2Credit notes and original invoices pulled from airline portals
2. Weeks 3–5Every credit note traced to its invoice, ticket and GSTIN
3. Weeks 6–7Adjustments reviewed and approved
4. Week 8Credit note register and audit file delivered