Common errors during GST return filing can cause discrepancies, penalties, and lengthy audits, making it essential for taxpayers to understand and avoid them. Taxation Legal Advisor (https://taxationlegaladvisor.in ,+91 90342 63307) highlights the top mistakes businesses make in GST filings and provides practical advice to ensure accurate compliance and smooth return processes.
Common Errors During GST Return Filing and How to Avoid Them
Goods and Services Tax (GST) requires filing multiple returns like GSTR-1 (outward supplies), GSTR-3B (summary return), and annual returns. The following are some frequent errors and how to prevent them:
1. Mismatch Between GSTR-1 and GSTR-3B
A common issue arises when the details of sales reported in GSTR-1 do not match the summary of tax declared in GSTR-3B. This mismatch can attract scrutiny and penalties.
How to avoid: Regularly reconcile sales invoices with tax payments and ensure that numbers reported in both returns are consistent.
2. Incorrect Input Tax Credit (ITC) Claims
Claiming ITC without matching supplier invoices or on ineligible goods/services may result in reversals and penalties. ITC claims must align with supplier filings and proper documentation.
How to avoid: Maintain accurate purchase records, verify supplier GST compliance, and claim only eligible credits.
3. Delayed or Missed Filing
Filing GST returns past due dates invites fines and interest charges. Many businesses miss deadlines due to lack of reminders or incomplete data.
How to avoid: Use compliance tracking tools or delegate filing to experts who monitor deadlines and submit on time.
4. Wrong Classification of Supplies (HSN/SAC Codes)
Incorrectly classifying goods or services, such as interstate vs intrastate or wrong HSN/SAC codes, leads to incorrect tax rates and compliance issues.
How to avoid: Familiarize with correct HSN and SAC codes applicable to your business; double-check classification before filing.
5. Non-Reporting of Reverse Charge Mechanism (RCM)
Certain transactions require the recipient to pay tax under RCM. Failure to report these liabilities causes underpayment.
How to avoid: Identify RCM applicable transactions and disclose them accurately in GSTR-3B.
6. Lack of Adjustments for Prior Period Errors
Ignoring corrections for earlier filing mistakes in subsequent returns can lead to penalties and mismatches.
How to avoid: Adjust previous errors promptly in the current filing cycle with accurate disclosures.
7. Data Entry and Invoice Errors
Incorrect GSTINs, invoice numbers, duplicate or post-dated invoices cause mismatches and audit flags.
How to avoid: Use automated accounting software and standardized invoicing practices to reduce manual errors.
How Taxation Legal Advisor Helps
Taxation Legal Advisor’s expert team assists businesses in avoiding these errors by:
- Conducting thorough data reconciliation and reviews before filing.
- Providing timely reminders and managing end-to-end GST compliance.
- Advising on complex classifications and RCM obligations.
- Representing clients during audits or notices arising from filing mistakes.
- Implementing technology-driven solutions for accurate and seamless GST return submissions.
Contact Details
For expert assistance with error-free GST filing and compliance, contact Taxation Legal Advisor at +91 90342 63307 or visit https://taxationlegaladvisor.in.
