Top 10 Common Mistakes Businesses Make During GST Filing—and How to Avoid Them
By KCJM, Chartered Accountants | Excellence in Everything We Do
GST (Goods and Services Tax) has undoubtedly revolutionized India’s indirect tax regime. However, many businesses—especially startups and small to medium enterprises (SMEs)—struggle with the intricacies of GST compliance. Errors during GST return filing can result in penalties, disruption in Input Tax Credit (ITC), or scrutiny from the authorities.
At KCJM, Chartered Accountants, with over two decades of experience in GST advisory, compliance, and audits, we’ve seen these issues firsthand. Here’s a comprehensive list of the top 10 common GST filing mistakes and practical strategies to avoid them.
1. Wrong GSTIN in Invoices
The Mistake: Entering an incorrect or invalid GSTIN on invoices.
Impact: Leads to mismatches and potential denial of ITC to your clients.
How to Avoid: Use GST-compliant billing software that verifies GSTINs against the GSTN portal.
2. Mismatch Between GSTR-1 and GSTR-3B
The Mistake: Reporting inconsistent data in GSTR-1 (outward supplies) and GSTR-3B (summary return).
Impact: Triggers scrutiny and ITC mismatches for recipients.
How to Avoid: Monthly reconciliation and automation tools help ensure consistency.
3. Late Filing of Returns
The Mistake: Missing return deadlines.
Impact: Attracts late fees and interest, and may lead to blocking of ITC.
How to Avoid: Automate reminders or entrust your GST compliance to KCJM’s professional CA team.
4. Incorrect HSN/SAC Codes
The Mistake: Using incorrect or outdated classification codes.
Impact: May result in incorrect tax rates and issues during audits.
How to Avoid: Always consult the latest CBIC guidelines or speak to your CA.
5. Ignoring Input Tax Credit (ITC) Reversals
The Mistake: Claiming ITC on ineligible goods/services or not reversing ITC when required.
Impact: Flags you during GST audits, resulting in interest and penalties.
How to Avoid: Keep a checklist for ITC eligibility and maintain robust documentation.
6. Non-Reconciliation with Books of Accounts
The Mistake: GST return data not matching with financial books.
Impact: Can lead to compliance issues and complications during audits.
How to Avoid: Regular reconciliations—monthly or quarterly—are key.
7. Omitting Nil Returns
The Mistake: Failing to file returns when there’s no activity.
Impact: Even NIL returns are mandatory; non-filing can lead to penalties.
How to Avoid: File NIL returns promptly to ensure continuous compliance.
8. Incorrect Place of Supply
The Mistake: Misidentifying the place of supply in inter-state transactions.
Impact: Affects CGST/SGST vs IGST treatment, leading to incorrect tax payments.
How to Avoid: Understand GST law definitions clearly or consult a GST expert.
9. Manual Errors in Data Entry
The Mistake: Input errors, incorrect tax rates, or typos in returns.
Impact: Causes mismatches and delays in processing.
How to Avoid: Use reliable GST software and double-check all data before filing.
10. Failure to Respond to GST Notices
The Mistake: Ignoring or delaying action on notices from the GST department.
Impact: Can escalate to audits, penalties, or even cancellation of GST registration.
How to Avoid: Monitor the GST portal regularly and seek professional help immediately.
Final Thoughts from KCJM, Chartered Accountants
GST compliance goes beyond timely filings—it requires strategic oversight, accuracy, and proactive management. By avoiding these common pitfalls, your business can maintain seamless operations and steer clear of legal complications.
Looking for expert guidance on GST returns, ITC, and reconciliation?
Let KCJM Chartered Accountants assist you with our specialized GST services tailored to Indian businesses and cross-border transactions.
📞 Contact us today:
🌐 https://kcjm.in
📧 support@kcjm.in
Keywords: Common GST mistakes, GST return filing errors, GST compliance tips India, Chartered Accountant GST India, GST input tax credit errors, GSTR-1 vs GSTR-3B mismatch, GST filing help for SMEs, GST advisory India
