Since there is no provision under GST regulation for amending a return we should ensure that Goods and Services Tax returns are right at the time of filing. The evaluates should be mindful in finishing Goods and Services Tax returns to avoid any extra problems in the future. Taxpayers are expected to file GST returns. Since it’s a particularly convoluted activity, it’s vital to be careful about each section made on the GSTN portal. There is no way to undo a mistake, Ensure you’re aware of the most pervasive blunders and try not to make them. We’ll go over Probably the most typical common mistakes while filing GST returns below. Keep away from these common GST Return filing mistakes.
COMMON MISTAKES THAT A GST REGISTERED PERSON MUST AVOID WHILE FILING A GST RETURNS
The Below list would be primarily indicative kinds of mistakes, errors /negligence that can occur by the GST taxpayer in India.
1) Payment and disclosure of GST tax under the wrong GST head
While filing Goods and Services Tax reports, there are a few tax heads to record, like IGST, CSGT, and SGST. Many taxpayers make the mistake of filing their GST liability or input tax credit under the wrong GST heading.
Indeed, even Goods and Services Tax tax is in some cases paid under the wrong heading at the time of payment or interest is paid under the mistaken tax heading, etc. While making good on charges, one should be careful because the GSTN prohibits and precludes the interchangeability of taxes. Because of unforeseeable cash flows, this could lead to an unfavorable working capital position.
2) Wrongfully claiming an input tax credit
GSTR-2A is an auto-created return where the provider declares a taxpayer’s registered purchases and accompanying input tax credit. While submitting returns, a taxpayer, on the other hand, must disclose their input tax credit individually. They ought to likewise submit and guarantee the right measure of input tax credit. On the off chance that a higher value is proclaimed, there is an opportunity to alter the return subsequently the distinction should be paid in the month’s return, with interest.
3) Delay in Submitting of GST return
It’s important to keep in mind to file GST returns on time. Neglecting to file Goods and Services Tax returns on time may result in the cancellation of your GST registration. likewise lead to monetary penalties.
4) Not Submitting your NIL return
That’s what a few taxpayers trust they have no transactions to report for a tax period, they don’t have to file a Goods and Services Tax return. Penalties may be imposed as a result of non-filing or late filing of taxes.
Regardless of whether a taxpayer has no exchanges to report for a given time frame, they ought to file a NIL return. This would likewise take into consideration further submission of taxes, as the GSTN forbids submitting returns if any first-period profits have not been filed.
5) Errors while uploading data invoice-wise in GSTR-1
GSTR-1 Demands that all outbound supplies have receipt-level information provided, including invoice date, invoice number, place of supply, tax rate, etc. Because of the huge measure of data to be provided, taxpayers periodically commit mistakes while contributing to it, bringing about a mismatch between GSTR-1 and GSTR-3B. A taxpayer must exercise caution because there is no way to modify a return once it has been filed.
6) Not making payment of Reverse Charge mechanism (RCM)
The government has laid out items and services for which recipients must pay RCM. If reverse charge tax is not paid. If additional interest payments and the loss of input tax credit. It should also be noted that ITC cannot be used to pay for reverse charge tax.
We can say that GST under the Reverse Charge mechanism must be paid through challan as it were. After payment of RCM Challan, GST-registered individuals can claim an ITC of a similar which can be claimed with output tax.
7) Ignoring reconciliation of GSTR 3B & GSTR 1
A GSTR-registered individual is committing big mistakes on the off chance that he doesn’t match his GSTR 3B and GSTR 1 returns regularly. Before filing GST returns, every individual ought to double-check that their GSTR 3B and GSTR 1 reports are matched consistently. For instance, if an individual proclaims deals of Rs. 2 crore in his GST return for the long stretch of May 2020 and deals of Rs. 2.50 crore in his GSTR 1 for that very month, he might confront superfluous prosecution with the GST office.
INCOMPLETE AADHAAR VERIFICATIONS BY THE GST-REGISTERED PERSON
Incomplete Aadhaar verification of the taxpayer is one of the mistakes made while filing GST returns. Rule 10B, which comes into effect on January 1, 2022, expects taxpayers to have their Aadhaar verification done for the specified objectives: To file an application for revocation of cancellation of Goods and Services Tax registration for filling the GST refund application under the form RFD-01To claim a refund under rule 96 of the IGST paid on goods exported outside India,
If a taxpayer fails to have his Aadhaar authentication finished, he might confront various issues, including having his Goods and Services Tax registration revoked and having to apply for revocation of such cancellation
PAYING GST IN THE INCORRECT CATEGORY
Numerous organizations have endured misfortunes because of paying under the incorrect categories. Ensure you’re paying your GST in the correct category while filing your GST returns. Try not to file your return under some other category assuming that it is expected to be filed under the State Goods and Services Tax (SGST)..
Before you file your taxes. ensure you have all of the data you want about the various types of Goods and Services Tax returns. Note that all interstate transactions will be dependent upon the IGST tax, while all intrastate exchanges will be dependent upon the CGST+SGST charge.
Advice- In the sense that you won’t be able to move the amount to other categories the mistake here can’t be remedied right away. All things considered, the excess IGST sum can be conveyed forward and refunded for future payments.
CONCLUSION
An enrolled individual can face a critical penalty and interest if the person files a GST return wrongly. After the GST system at present, GST taxpayer no longer has the choice of revising their GST returns, abstaining from committing mistakes when filling GST returns.
Incomplete Aadhaar Authentication by the taxpayer, and not guaranteeing TDS and TCS are instances of GST botches, as not asserting TDS and TCS is an immediate misfortune to the citizen.
Before filing GST returns, ensure you comprehend the different types of GST returns. To keep away from monetary misfortunes, keep a nearby mind every piece of information that went into the filing of the taxes. Ensure you counsel a Chartered Accountant India before filing your Goods and Services Tax return.
This Blog is written by Aditi Dixit.
