GST return filing is an important task for all businesses that are registered under the GST regime. It involves reporting the transactions and paying the GST liability for a particular period. However, many businesses make mistakes while filing their GST returns, which can lead to penalties and legal consequences. Here are some common mistakes to avoid while filing GST returns:
Incorrect Reporting of Transactions: One of the most common mistakes that businesses make while filing GST returns is incorrect reporting of transactions. This can happen when businesses fail to maintain proper records of their transactions or do not match the invoices with the corresponding GST returns. To avoid this mistake, businesses must ensure that they maintain accurate records of their transactions and reconcile them with the GST returns before filing.
Wrong Filing of GSTR-1 and GSTR-3B: Another common mistake that businesses make is the wrong filing of GSTR-1 and GSTR-3B. GSTR-1 is the monthly or quarterly return that businesses file to report their outward supplies, while GSTR-3B is the summary return that businesses file to pay their GST liability. Businesses must ensure that they file both returns correctly and on time to avoid penalties.
Input Tax Credit (ITC) Mismatch: Input tax credit is the tax paid on purchases that businesses can claim as a deduction from the GST liability. However, businesses often make mistakes while claiming ITC, which can result in an ITC mismatch. This can happen when businesses claim ITC on goods or services that are not eligible or when they fail to match the invoices with the corresponding GST returns. To avoid this mistake, businesses must ensure that they claim ITC only on eligible goods or services and reconcile the ITC claimed with the GST returns before filing.
Late Filing of GST Returns: Late filing of GST returns can attract penalties and interest. Many businesses make the mistake of not filing their GST returns on time, which can lead to financial consequences. To avoid this mistake, businesses must ensure that they file their GST returns on time and pay the GST liability before the due date.
Failure to Rectify Errors: In case of any errors or discrepancies in the GST returns filed, businesses must rectify them at the earliest. However, many businesses make the mistake of not rectifying the errors, which can result in legal consequences. To avoid this mistake, businesses must ensure that they rectify any errors in the GST returns and file revised returns if necessary.
