Common Mistakes to Avoid During GST Return Process

2. Common Mistakes to Avoid During GST Return Process • GST i.e. Goods & Services Tax Return is a document that contain details related to income/ sales and expenses/ purchases. It should be filed by every taxpayer who has been registered under GST and have a GSTIN i.e. GST Identification Number. But you need to be careful while GST Return Process. You should avoid some common mistakes during GST return filing. Here in this article we will discuss about such mistakes that usually taxpayers made during GST filing.

3. Eligibility Criteria for GST Return Process • GST registered business • A person with an annual turnover of more than Rs. 20 Lakhs. • For some special states, the annual turnover limit is Rs. 10 Lakhs. • Person having valid GSTIN i.e. Goods & Services Tax Identification Number • Regular businesses with an annual aggregate turnover of more than Rs. 5 Crores. • There are also separate returns required to file in special cases like composition dealers (5 GSTR Filing)

4. Lack of Documentation Fail to File NIL GST Return Incorrect Invoice Details Common Mistakes to avoid during GST Return Process • One of the major errors of GST Return process is incomplete documentation. You should keep all the crucial documents including invoices, bill of supply, etc. organized in order to file GST Return appropriately. • Sometimes taxpayers thought that there is no need of filing GST Return when their business makes no transactions during a specific tax period. But in that case you should file your NIL GST Return. Failure to doing so will lead to hefty penalties. • You should fill the appropriate invoice details including GSTIN, Invoice number, invoice date, place of supply, tax rate, etc. Incorrect details will lead to the compliance issues & penalties.

5. Claiming Incorrect Input Tax Credit Wrong Categorization of Zero Rated Supply & Nil Rated Supply Common Mistakes to avoid during GST Return Process • If you claim incorrect Input Tax Credit and fail to reconcile your purchase data in GSTR-2A with the data that you have been filed in GSTR-3B, it will lead to compliance issues. • Usually exports & supplies to an SEZ (Special Economic Zones) have been fall in the category of zero-rated supplies whereas goods & services with an applicable tax rate of 0% will come under Nil rate supply category. You need to be careful about this categorization.

6. Reporting & Payment of Tax Under wrong GST head Reverse Charge Mechanism Common Mistakes to avoid during GST Return Process • Products & Services providers should make sure that they did not pay GST on services & products on which the Reverse Charge Mechanism has been applicable in order to avoid repeated payments of the tax. • You need to report & pay the tax under correct GST Head including IGST, CGST, & SGST. If you fail to do so, it will lead to severe consequences including legal issues. So you just make sure that you file your return under correct GST head.

7. Conclusion • As we discussed earlier that GST Return Process is crucial especially for those who have been registered under GST. Sometimes taxpayers make mistakes while filing GST Return. So in this article we told you about the common mistakes that people can make while filing ITR. To get a clear picture you can also seek the expert guidance of professionals like Legal Pillers. The dedicated team of Legal Pillers will help you throughout the process. 10% 20%

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