If you’re a business owner in India, chances are you’ve had to deal with GST (Goods and Services Tax) filing at some point. And let’s be honest – it’s not always seems as straightforward. Whether you’re doing it yourself or appoint an accountant, mistakes can still happen. These mistakes might seem minor but can result in penalties, interest, or even a freeze on your input tax credit.
In this blog, I will break down some of the most common errors people make while filing GST returns. Being aware of these can help you save time, avoid extra money, reduce unnecessary stress
1. Late Filing of Returns
This one’s probably the most common and the easiest to avoid. Many small businesses forget the due date or delay filing, thinking they’ll do it later. But the GST system doesn’t forgive when it comes to missing deadline.
If you are late filing your return, you’re not just paying a late fee – you will also have to pay interest or unpaid tax. Over time, these cost can quietly build up. Even if you did not have any sale and purchase activity during the period, you still required to file a nil return.
Tip: Set reminders or automate the process through software if possible.it will save your unwanted penalties.
2. GSTR-1 and GSTR-3B mismatches
Another common error is when the sales data in GSTR-1 (which reports your outward supplies) doesn’t match what’s shown in GSTR-3B (your summary return). This usually happens due to missed invoice or wrong value entered.
When the amount doesn’t match, it can lead to notices from the GST authorities and may also impact your client’s ability to claim Input Tax Credit (ITC). It might even delay your own return processing.
Tip: Reconcile your sales records with the data in both returns every month, before submitting return.
Key Changes in GSTR-1
Table 12 – HSN Code Reporting:
- Businesses with AATO up to ₹5 crore → Must report minimum 4-digit HSN.
- Businesses with AATO above ₹5 crore → Must report minimum 6-digit HSN.
- Manual typing removed → HSN codes can now be selected only from dropdown.
- Separate tabs → B2B and B2C supplies to be reported individually.
Table 13 – Document Summary:
- Mandatory from May 2025 return period.
- Must report all document types – invoices, credit notes, debit notes & revised invoices.
- Returns won’t be filed if Table 13 is left incomplete → validation error
3. Claiming Ineligible Input Tax Credit (ITC)
ITC is a huge benefit under GST, but many businesses made mistake of claiming ITC on ineligible items such as personal expenses or blocked credit (e.g., on food, travel, motor vehicles for personal use, etc.).
Also, some claim ITC without verifying if it’s showing in GSTR-2B, which is the government’s auto-generated credit statement.
Tip: double check your GSTR-2B each month and ensure your vendors have uploaded all relevant invoices. if it’s not reflected there, your ITC claim might be rejected later.
4. Incorrect GST Rate or HSN/SAC Code
using the wrong GST rate is mistake that’s more frequent than people think. Sometimes, due to confusion about the right product category or choosing the incorrect HSN (Harmonized System of Nomenclature) or SAC (Service Accounting Code).
If you end up charging less tax rate than required, you may later need to pay the difference along with interest. On the flip side, overcharging can lead to disputes with customer.
Tip: Always double check theGST rate lists and code using the official rate chart or consult your tax expert to ensure correct classification.
5. Submitting the Wrong GST Return type
There are several types of GST returns such as (GSTR-1, GSTR-3B, GSTR-4, etc.) depending on the type of business and registration. Sometimes, businesses file the wrong return type – for example, a composition dealer filing GSTR-1 instead of GSTR-4.
It may seem like a small technical issue, it can cause mismatches and confusion, especially when your buyers are reconciliation their record with your buyers.
Tip: Understand your GST category and only file the relevant returns.
6. Forgetting to file Nil Returns
This mistake common is among freelancers, small businesses, or seasonal businesses. Many people think that if there’s no sales or purchases transition in a month, they don’t need to file GST returns.
That’s incorrect
Even when there’s no income and expenses business, you still required to file a nil return. Skipping it can lead to fines or even suspension of your GSTIN registration
Tip: File nil returns on time- its simple task that avoids bigger problem later.
7. Not Reconciling with Books of Accounts
Some businesses submit GST returns based only their on invoices a without checking if those match the data in their accounting books. This can cause trouble during GST audits or while filing annual return like -GSTR-9.
Any inconsistencies can lead to extra tax liability, interest and penalties.
Tip: Always do monthly Reconciliation between your GST returns and your accounting record. this help catch error easily.
8. Errors in Invoice Details
This includes everything from:
- Wrong GSTIN of the buyer
- wrong invoice number or date
- leaving out the place of supply
- Incorrect splitting taxes between CGST/SGST/IGST
While these might seem minor errors, they can cause trouble for your customer – especially when they try to claim input tax credit. That could even affect your business relationship.
Tip: check each invoice carefully before uploading to the GST portal. A little extra attention can prevent major issue done the line.
9. Not Updating Business Details on GST portal
If your business details-such as address, contact information, or bank details-have change and you haven’t updated them on the GST portal, it may create unwanted compliances. You could miss important notification or face delays in refunds processing and verifications.
Tip: Always keep your GST account updated. Whenever there’s any modification in your business information, ensure you have to update it in your GST portal.
Conclusion
Submitting GST return does not have to be stressful. Most of the common mistakes listed above can be easily avoided with a little awareness and consistency. keeping your document in order, maintain proper and clean records, and doing monthly reconciliations. In the long run, staying on the top of your GST compliance can help you from paying fines, notices, and a lot of unnecessary adjustment.
If you’re submitting GST return by your own, then should use reliable accounting software tool or even you can hire a part-time tax professional during busy periods. The small investment in it helps you to offer peace of mind and keep running your business smoothly.
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