Uploaded on Sep 18, 2024
GST i.e. Goods & Services Tax Return is a document that contain details related to income/ sales and expenses/ purchases. It should be filed by every taxpayer who has been registered under GST and have a GSTIN i.e. GST Identification Number. But you need to be careful while GST Return Process. You should avoid some common mistakes during GST return filing. Here in this article we will discuss about such mistakes that usually taxpayers made during GST filing.
Common Mistakes to Avoid During GST Return Process
Common Mistakes to Avoid During GST
Return Process
GST i.e. Goods & Services Tax Return is a document that contain
details related to income/ sales and expenses/ purchases. It should
be filed by every taxpayer who has been registered under GST and
have a GSTIN i.e. GST Identification Number. But you need to be
careful while GST Return Process. You should avoid some common
mistakes during GST return filing. Here in this article we will discuss
about such mistakes that usually taxpayers made during GST filing.
Eligibility Criteria for GST Return
Process
• GST registered business
• A person with an annual turnover of more than Rs. 20 Lakhs.
• For some special states, the annual turnover limit is Rs. 10
Lakhs.
• Person having valid GSTIN i.e. Goods & Services Tax
Identification Number
• Regular businesses with an annual aggregate turnover of
more than Rs. 5 Crores.
• There are also separate returns required to file in special
cases like composition dealers (5 GSTR Filing)
Common Mistakes to avoid during GST
Return Process
Lack of Documentation
One of the major errors of GST Return process is incomplete documentation. You should keep all
the crucial documents including invoices, bill of supply, etc. organized in order to file GST Return
appropriately.
Fail to File NIL GST Return
Sometimes taxpayers thought that there is no need of filing GST Return when their business
makes no transactions during a specific tax period. But in that case you should file your NIL
GST Return. Failure to doing so will lead to hefty penalties.
Incorrect Invoice Details
You should fill the appropriate invoice details including GSTIN, Invoice number,
invoice date, place of supply, tax rate, etc. Incorrect details will lead to the
compliance issues & penalties.
Common Mistakes to avoid during GST Return
Process
Claiming Incorrect Input Tax Credit
If you claim incorrect Input Tax Credit and fail to reconcile your purchase data in GSTR-2A with
the data that you have been filed in GSTR-3B, it will lead to compliance issues.
Wrong Categorization of Zero Rated Supply
& Nil Rated Supply
Usually exports & supplies to an SEZ (Special Economic Zones) have been fall in the category
of zero-rated supplies whereas goods & services with an applicable tax rate of 0% will come
under Nil rate supply category. You need to be careful about this categorization.
Common Mistakes to avoid during GST Return
Process
Reverse Charge Mechanism
Products & Services providers should make sure that they did not pay GST on services &
products on which the Reverse Charge Mechanism has been applicable in order to avoid
repeated payments of the tax.
Reporting & Payment of Tax Under wrong GST head
You need to report & pay the tax under correct GST Head including IGST, CGST, & SGST. If you
fail to do so, it will lead to severe consequences including legal issues. So you just make sure
that you file your return under correct GST head.
Conclusion
As we discussed earlier that GST Return Process is crucial e
specially for those who have been registered under GST. So
metimes taxpayers make mistakes while filing GST Return.
So in this article we told you about the 1com0m%on mistakes th
at people can make while filing ITR. To get a clear picture yo
u can also seek the expert guidance of professionals like
Legal Pillers
. The dedicated team of Legal Pillers wi2ll h0elp% you througho
ut the process.
Thank you
Contact Us
+91
[email protected]
www.legalpillers.com
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