8 Common Mistakes to Avoid in GST Filing

12 Sep 2023

Goods and Services Tax (GST) is the backbone of India’s taxation system, simplifying the way businesses pay taxes. However, navigating the GST landscape can be challenging, and even the most seasoned professionals can make costly mistakes during the filing process.

In this comprehensive guide, we’ll explore the common mistakes to avoid in GST filing, catering to various types of GST. Whether you’re a financial or legal professional, staying informed about these pitfalls is crucial for smooth tax compliance.

Common Mistakes Across All Types of GST:

1. Lack of Documentation: One of the fundamental mistakes is failing to maintain proper documentation. Whether it’s invoices, bills of supply, or purchase records, keeping organized records is paramount for accurate GST filing.

2. Incorrect Invoice Details: Errors in invoices, such as incorrect GSTIN (Goods and Services Tax Identification Number), wrong invoice number, or incorrect tax calculation, can lead to compliance issues and penalties.

3. Mismatch in GSTR-2A and GSTR-3B: Failing to reconcile your purchase data (GSTR-2A) with the data you’ve filed (GSTR-3B) can result in discrepancies and compliance problems.

4. Ignoring Reconciliation: Reconciliation is often overlooked. Regularly comparing your books with your GST returns helps identify discrepancies and correct them promptly.

5. Missing the GST Return Due Dates: Late filing of GST returns attracts penalties. It’s crucial to be aware of the due dates and file returns on time.

6. Not Validating GSTIN of Suppliers: Verify the GSTIN of your suppliers using the GST portal. Incorrect or fake GSTINs can lead to input tax credit denial.

7. Inadequate Knowledge of GST Composition Scheme: If you’re under the GST Composition Scheme, not understanding its intricacies can result in incorrect filings.

8. Ignoring GST Notices and Compliance: Failure to respond to GST notices or ignoring compliance requirements can lead to legal troubles and heavy penalties.

Also Read:- New GST Rules for Small Businesses: What You Need to Know

Specific Mistakes for Different Types of GST:

1. CGST (Central Goods and Services Tax):

  • Ensure you correctly classify transactions as either intra-state (CGST) or inter-state (IGST) to avoid incorrect tax calculation.

2. SGST (State Goods and Services Tax):

  • Different states may have varying GST rates for the same product or service. Failing to account for these differences can lead to inaccuracies.

3. IGST (Integrated Goods and Services Tax):

  • For inter-state transactions, IGST applies. Ensure you understand and correctly apply this tax to avoid complications.

4. GST Composition Scheme:

  • Composers need to follow specific rules and file quarterly returns. Failing to do so can result in penalties or exclusion from the scheme.

Also Read:- GST Compliant Invoices/Bills: Key Elements, Significance, and Best Practices

Consequences of GST Filing Mistakes:

Mistakes in GST filing can have serious consequences, including:

  • Penalties
  • Interest on late payments
  • Loss of input tax credit
  • Legal actions and investigations
  • Damage to your business’s reputation

Tips for Avoiding GST Filing Mistakes:

1. Use GST Software:

  • Invest in reliable GST software to automate calculations and reduce the chances of manual errors.

2. Regularly Update GST Knowledge:

  • Stay informed about GST law changes, notifications, and circulars to ensure compliance.

3. Seek Professional Guidance:

  • Consult with GST experts or tax consultants to navigate complex scenarios.

4. Conduct Internal Audits:

  • Regularly review your GST records and filings to identify and rectify errors promptly.

5. Stay Informed About GST Amendments:

  • Be aware of any amendments to GST laws and incorporate them into your filing process.

This checklist is designed to help businesses ensure they are fully prepared for GST filing by covering essential tasks and considerations.

GST Filing Checklist

Checklist Before Filing GST for Business

Category Task/Item
Documentation Ensure all invoices and documents are properly maintained.
Verify that invoices are sequentially numbered.
Validate GSTIN of suppliers and recipients.
Cross-check invoice details with purchase and sales data.
Confirm HSN codes for goods and SAC codes for services.
Tax Calculation Double-check tax calculations for CGST, SGST, IGST.
Verify the accuracy of tax rates applied.
Reconciliation Reconcile GSTR-2A (purchase return) with purchase data.
Reconcile GSTR-1 (sales return) with sales data.
Timeliness Ensure GST return due dates are noted and adhered to.
Confirm that payments have been made on time.
Reverse Charge Mechanism (RCM) Identify RCM transactions and ensure they’re reported.
Input Tax Credit (ITC) Check that ITC is claimed only for eligible purchases.
Ensure ITC reversal if goods or services aren’t used.
Amendments and Corrections Address any corrections or amendments promptly.
Ensure cancellation of incorrect or void invoices.
GST Software and Tools Utilize reliable GST software for accurate filings.
Ensure software validates data before filing.
Legal Compliance Comply with the provisions of the GST law and regulations.
Keep up with GST amendments and notifications.
Professional Guidance Seek expert advice for complex scenarios or doubts.
Consult with a tax consultant or CA if necessary.
Audit and Review Conduct an internal audit before filing.
Review GST returns for any discrepancies or errors.
GSTN Login Credentials Ensure you have the correct GSTN login details.
Backup and Data Security Regularly backup GST data for security.
Protect sensitive GST-related information.
GST Payment Verify the correctness of the GST payment.
Keep records of GST payments and challans.
Compliance Records Maintain records of GST returns, invoices, and compliance.
Store records securely for the prescribed period.


In the realm of GST, avoiding mistakes is paramount. By understanding and addressing these common mistakes, you can ensure a smooth and compliant GST filing process. Remember, staying vigilant, seeking professional guidance when needed, and keeping up with changes in GST regulations are the keys to success in the ever-evolving world of taxation.

Related Blog:-
Threshold Limit for GST Registration: All You Need to Know

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