Common Errors While Filing Your GST Returns

Common Errors While Filing Your GST Returns

Introduction

It is a requirement for taxpayers to file GST returns. Due to the complexity of the process, clear must be taken with each input made on the GSTN portal. Any error made cannot be undone. Please ensure you are aware of the most frequent mistakes and avoid making them.

1. Failing to submit GST returns for no sales:

It’s critical to understand that even if there are no sales, you must still submit a GST return. If you don’t, you will have to pay a fine for failing to file your GSTR on time or at all. Make sure to file NIL returns if you had no sales within a certain tax period. A well-versed CA should be consulted before filing, as this is one of the consumers’ primary areas of certainty.

2. Making tax payments in the incorrect GST category:

Many companies have suffered losses because of making payments under incorrect categories. Ensure you pay your text in the appropriate variety when completing GST returns. Only file under this category if your submission is meant to be under the state goods and services tax (SGST). Before completing your tax, gather thorough information on the several forms of GST returns.

All intrastate transactions are subject to CGST+SGST tax, and all interstate transactions will be submitted to IGST.

3. Treating exports with zero rating as Nil-rated:

Recognize that all GST-covered exports will be regarded as zero-rated supplies; this does not imply that these supplies have a 0% tax rate. In other words, any tax paid on imports or exports will result in an ITC return. The ITC is not applicable, and zero-rated supplies are taxed at 0% or Nil rate. Avoid declaring exports as Nil-rated supplies since you want to repay your tax.

4. Covering unnecessary reversing costs:

When filing GST returns, many suppliers make this typical mistake. The beneficiary of the supply is responsible for pain the tax associated with the supply under the Reserve charge mechanism. In some exceptional circumstances, the registered recipient must pay the tax assessed by an unregistered supplier to supply material to them. For instance, Y must pay tax on the products or services received, not X, if X is the supplier and Y is the recipient. Without adequate knowledge, many suppliers pay taxes instead of the recipient.

5. Incorrectly entered data in quarterly and monthly returns:

All your quarterly and monthly data must line up with your yearly data. The slightest error could result in the rejection of your GSTR-9. This will result in the GST department sending you a demand notice later.

Conclusion:

Before filing GST returns, thoroughly read about the different forms of GST returns. To prevent financial losses, keep closely checking every detail and piece of information entered when completing returns. Speak with a Chartered Accountant (CA) before filing your Goods and Services Tax (GST) return.