Top GST Filing Mistakes to Avoid
Learn how to avoid common mistakes in GST filing, including lack of documentation, incorrect invoice details, and mismatch in GSTR-2A and GSTR-3B. Stay compliant and avoid penalties with these expert tips and best practices.
- Neglecting to File Nil Returns: Even if there are no sales or purchases during a tax period, businesses must still file a nil GST return to avoid penalties.
- Confusing Zero-Rated and Nil-Rated Supplies: Properly categorizing supplies as zero-rated (e.g., exports) versus nil-rated (0% GST) is crucial for accurate GST filing.
- Failing to Reconcile GSTR-1 and GSTR-3B: Regularly reconciling the sales data in GSTR-1 with the summary return GSTR-3B ensures consistency and avoids discrepancies.
- Not Paying Reverse Charge Mechanism (RCM) Tax: Businesses must pay RCM tax on certain goods/services directly to the government, and failure to do so can lead to loss of input tax credit.
- Incorrect Entry of Invoice Details in GSTR-1: Accurately reporting recipient invoice details in GSTR-1 is essential, as errors can result in denial of input tax credits.
- Misplacing Export Sales Details: Export sales must be declared in the zero-rated supplies column, not the regular sales column, to claim GST refunds properly.
- Delays or Failure to File GST Returns on Time: Missing GST return filing deadlines can result in penalties, interest, and even cancellation of GST registration.
