GST is non-statutory in nature—it’s a component of fiscal prudence for any Indian company. From small and medium size businesses and start-ups to large business setups, all the Goods and Services Tax registered businesses need to be filing true and timely returns for being GST rule compliant. Even that, most of the companies are committing expensive mistakes either because they were unaware of rules or not vigilant enough or because of inefficient processes. These errors invoke penalty charges, ITC denial, and even GST department raids.
Following is a guide article identifying six most common GST filing errors and providing easy, practical tips on how to steer clear of them. Whether you are an individual proprietor or a practitioner with clients as clients, understanding and avoiding these errors may save your hard-earned dollars and add professional integrity.
1. Misuse of GSTIN Filing
“The GSTIN, the Goods and Services Tax Identification Number, is a unique 15-digit alphanumeric number that has been allocated to every business under the GST regime in India. It is the standard taxpayer identification of all GST-related filings and transactions. Filing the wrong GSTIN is a very usual mistake. It can lead to the rejection of the return, ITC mismatches during claiming, and jurisdictional mismatches as well.
Prevention:
Verify the GSTIN always from the original GST portal.
Utilize computer utility software which verifies GSTINs online.
Keep up-to-date and validated lists of clients’ and vendors’ GSTINs.
2. Unreported/Missing Invoices
Every sales and purchase invoices issued needs to be reported in your GST return. Non-reporting thereof leads to underreporting turnover, loss of ITC availed, and GST notices by the GST department.
How to Avoid:
Utilize computer billing software for issuing, tracking, and archiving all bills.
Pay purchase and sale bills monthly.
Properly label bills—B2B, B2C, exports, etc.—while uploading.
3. Mis-match Between GSTR-1 and GSTR-3B
GSTR-1 is a return which records detailed details of all outward supplies (sales) of a registered taxpayer, whereas GSTR-3B is a summary return submitted on a monthly basis which consolidates the total outward and inward supplies and tax liability. Mis-match between them can lead to system-generated mis-match notices and credit claim delay.
How to Avoid:
Submit returns on single software platform.
Verify invoice numbers, tax, and taxable value prior to final filing.
Employ preview reports for detecting errors in time.
4. Non-availment of eligible Input Tax Credit (ITC)
Missing eligible ITC is one of the most expensive errors of businesses. Taxpayers fail to reconcile their purchase register with the auto-drafted GSTR-2B and miss the chances of claiming input tax credits. Some businesses even take credit of ineligible ITC for which they are charged a penalty.
Prevention:
Reconcile your purchase register with GSTR-2B records at periodic intervals to ensure correct claims of ITC and prevent mismatches.
Don’t allow ITC on blocked credits like private spending or capital assets for non-business use.
Alert sellers to file GSTR-1 on time.
5. Filing Returns Late
Late filing of returns invites late fee, interest, and even suspension of your e-way bill generation facility. It also adversely affects your overall GST compliance score for your business.
How to Avoid
Use a GST compliance calendar with reminders of due dates.
File NIL return even if business is NIL.
Get it done by a professional or team member.
Calendar illustrating GST compliance due dates with reminders underlined for key filing deadlines.
6. Ignoring GST Notices and Communication
Notices are released by GST authorities due to reasons like mismatches, non-filing, audit, or clarification sought. Disregard or late response can cause piling of issues and even up to court cases.
Avoidance:
Verify the GST portal periodically for fresh notices or notifications.
Respond within the notified time.
Consult a GST or CA professional in case of any doubt on the notice content.
Example of GST notice dashboard on GST portal.
Pro Tips to Enhance Your GST Filing Experience
1. Automate Your GST Compliance
Leverage bundled software that ties up accounting, invoicing, and GST filing together to organize your compliance process.
Automation eliminates the scope of manual errors and helps in the timely filing of the return.
2. Reconcile Every Month Without Default
Reconcile your GSTR-1, GSTR-3B, and GSTR-2B every month to identify mismatches in advance. Do this as part of the regular routine prior to filing.
3. Keep Yourself Informed with Reformed GST Rules
GST rules keep changing. Keep yourself informed by visiting official sites like CBIC, GSTN, and tax professionals’ newsletters.
4. Hire a Professional When Required
If your company is of compound transactions, international transactions, or multiple GSTINs, then it would be preferable to have your returns prepared by a professional.
CA cross-verifying GST returns with a businessman in an advisory meeting.
Conclusion
Accurate filing must be done to escape penalties, keep an unbroken chain of input tax credits intact, and reflect professionalism for your business. The above six GST filing errors—from wrong GSTIN inputs to overlooking notice—are among the most frequent, but avoidable with apt tools and information.
Here, at LEGAL DALAL, our GST professionals submit your GST returns timely, accurately, and as required. You begin a new business or file monthly—you’re made to do it so much easier.
Avoid mistakes. File wisely. Trust LEGAL DALAL with end-to-end GST services—registration, filing of returns, notice handling, and more—all done by a single expert professional.
Legal Dalal “Your Business. Our Expertise.
