Common GST Return Filing Mistakes and How to Avoid Them
Common GST Return Filing Mistakes and How to Avoid Them
In this post, we will discuss the most common mistakes people make while filing GST returns and how you can avoid them.
Let’s look at each section in detail:
Introduction
Goods and Services Tax (GST) forms the foundation of India’s tax system by making it easier for businesses to pay taxes. Yet, understanding GST rules and completing the filing process correctly can be difficult, and even experienced professionals sometimes slip up.
In this clear and easy-to-follow guide, we will look at the most common mistakes to avoid when filing GST returns for all categories. Whether you work in finance or law, being aware of these pitfalls will help you stay compliant and file your taxes without difficulty.
Most common GST return filing mistakes and how to avoid them
While filing GST returns, even small mistakes can lead to big issues later. Many of these errors are common and can be avoided with a little extra care. We’ll look at some common GST filing errors below, along with tips for avoiding them.
1. Manual entry mistakes
While filing GST returns, manual data entry mistakes are very common. These can happen easily and may lead to serious issues. If any detail is entered incorrectly, it could be seen as a wrong representation of your financials, which can be considered as fraud. Always double-check entries to avoid such problems.
2. Correct tax slab calculation
Make sure you calculate GST as per the correct tax slab for each item. Refer to the GSTN and HSN codes to get the right tax rate. Any mistake here can lead to wrong tax amounts being filed.
3. Filing NIL returns
Even if your business had no transactions during a tax period, you still need to file a return. This is called filing a NIL return. Many people assume that no activity means no filing, but that’s not true. Filing NIL returns is mandatory.
4. Zero-rated vs Nil-rated supplies
Businesses often get confused between zero-rated and nil-rated supplies. Nil-rated means goods or services that attract 0 % GST. Zero-rated applies to exports and supplies to SEZs. Keep this difference in mind while filing returns.
5. Reverse charge mechanism (RCM)
Under RCM, the buyer has to pay GST directly to the government instead of the seller. Make sure you know which goods or services fall under this rule and file accordingly.
6. ITC under RCM and blocked credits
If GST is to be paid under reverse charge, the supplier should not charge GST on the invoice. The recipient will pay it directly. This avoids double tax payments and unnecessary compliance issues.
7. Using the correct GST heads
While paying GST, using the wrong head is a common mistake. Each type of GST (CGST, SGST, IGST) has its own head. Make sure you disclose and pay under the correct head to avoid future problems.
8. Claiming ineligible Input Tax Credit (ITC)
ITC should only be claimed if it is eligible. Cross-check your GSTR-2A, GSTR-3B, and purchase records to claim the correct amount. Claiming ineligible ITC can lead to penalties and notices from the department.
Conclusion
It is essential to avoid mistakes when dealing with GST. By knowing these common errors and fixing them early, you can keep your filings accurate and on time. Stay alert, ask an expert when you need to, and regularly check for updates in GST rules. That’s how you will stay compliant and make GST filing hassle‑free.
With that, we conclude this post. Please leave any questions or comments in the box below, and we are more than happy to answer them.
FAQs
Q. Why is my GST return showing ‘Filed with Error’?
Ans: If your GST return shows ‘Filed with Error’, it usually means there are some issues with the data you’ve submitted. Here are some common reasons:
- Mismatch in data – For example, the sales details in GSTR-1 and GSTR-3B don’t match.
- ITC problems – The input tax credit you claimed doesn’t match what your suppliers have filed in GSTR-2B.
- Portal issues – Sometimes, the GST portal faces technical problems, especially during peak filing hours.
Here is what you can do
- Use the reconciliation tool on the GST portal to compare invoices and find mismatches.
- If needed, make corrections in the next month’s return by filing amendments.
- If the issue continues, reach out to the GST helpline. Their support team is usually quite helpful.
Q. Can GSTR-9 be corrected?
Ans: No, after you file Form GSTR-9, you cannot make any changes or modifications. It is a final submission with no possibility for correction.
Q. Is GSTR-9 mandatory for everyone?
Ans: GSTR-9 is compulsory if your total turnover is more than ₹2 crore in a financial year. If your turnover is ₹2 crore or less, then filing GSTR-9 is optional.
