Common Mistakes to Avoid in GST Return Filings

Mistakes to Avoid in GST Return Filings
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In the ever-evolving landscape of the Indian taxation system, the introduction of the Goods and Services Tax (GST) was a landmark change, aimed at unifying the country’s tax structure into a single, comprehensive framework. While GST has significantly streamlined tax processes, businesses, especially SMEs and startups, often find themselves entangled in the complexities of GST return filings. The importance of accurate GST return filing cannot be overstated, as it not only ensures compliance but also facilitates smooth business operations. In this blog, we’ll dive deep into common mistakes to avoid in GST Return filing process and provide strategic insights to navigate these challenges, ensuring a seamless compliance journey for your business with Apki Return.

The Goods and Services Tax (GST) system, while beneficial for the Indian economy, can present complexities when it comes to filing returns. Here at Apki Return, we understand that navigating these complexities can be overwhelming. This blog post aims to empower you by highlighting common mistakes to avoid in GST Return Filings, ensuring a smooth and compliant process.

Understanding the Different GST Returns

Understanding the Different GST Returns

Before delving into common pitfalls, let’s establish the different GST return types:

  • GSTR-1: This monthly return details outward supplies made by a taxpayer (sales to customers).
  • GSTR-3B: This consolidated return summarizes your tax liability for the month, encompassing information from GSTR-1, purchases (GSTR-2A), and tax payment details.
  • GSTR-2A: This purchase return reflects inward supplies received by a taxpayer from registered vendors (purchases). However, it’s filed by the supplier and auto-populated in your GSTR-3B for reconciliation purposes.

Common Mistakes to Avoid in GST Return Filings

1.  Errors in Invoice Details (GSTR-1)

Incorrect Information: Ensure all invoice details, including GSTIN (Goods and Services Tax Identification Number) of the recipient, invoice number, date, and tax rate, are meticulously entered.
Missing Entries: Incomplete data in GSTR-1 can lead to discrepancies and hinder input tax credit (ITC) claims.
Solution: Maintain organized records of your sales invoices. Double-check all entries before submitting GSTR-1.

2. Mismatched Data Between GSTR-1 and GSTR-2A

Discrepancies between your outward supplies (GSTR-1) and inward supplies reflected in GSTR-2A (filed by your vendors) can trigger scrutiny from tax authorities.
Solution: Regularly reconcile your purchase records with GSTR-2A data. Communicate discrepancies with your vendors promptly to ensure corrections are made in their GSTR-1.

3. Incorrect Claiming of Input Tax Credit (ITC)

ITC allows you to claim tax credit on purchases made from registered vendors, effectively reducing your tax liability. However, claiming ineligible credits can lead to penalties.
Solution: Clearly understand the rules for claiming ITC. Only claim credit for eligible purchases supported by valid tax invoices.

4. Ignoring Reconciliation

Reconciliation involves comparing your accounting records with the information filed in your GST returns. Inconsistencies can indicate errors or missed entries.
Solution: Regularly reconcile your accounts with GSTR-1, GSTR-2A, and GSTR-3B to identify and rectify any discrepancies.

5. Missing Nil Returns

Even if you haven’t conducted any business activities in a particular month, filing a nil return (GSTR-3B) is mandatory. Failing to do so can attract penalties.
Solution: Remember to file nil returns whenever your business has no transactions for the month.

6. Late Filing of GST Returns

Late Filing of GST Returns

Timely filing of GST returns is crucial. Delays attract late filing fees and potential interest charges.
Solution: Stay updated on due dates and make a conscious effort to file your returns well before deadlines. Utilize calendar reminders or consider using GST filing software with automated due date notifications.

7. Not Paying Reverse Charge Mechanism (RCM) dues

Under RCM, the responsibility of paying GST on certain inward supplies falls on the recipient (buyer) instead of the supplier. Ignoring this obligation can lead to penalties.
Solution: Identify transactions where RCM applies and ensure timely payment of the relevant GST.

8. Inaccurate Classification of Goods and Services under HSN/SAC Codes

HSN (Harmonized System of Nomenclature) and SAC (Services Accounting Code) classify goods and services for GST purposes. Incorrect classification can lead to incorrect tax calculations and potential penalties.
Solution: Refer to the HSN/SAC code manual to accurately classify the goods and services you deal in. Utilize online resources or consult a tax professional if needed.

9. Not Maintaining Proper Records

Proper record-keeping is essential for GST compliance. You may be required to furnish invoices, purchase bills, and other documents for verification by tax authorities.
Solution: Maintain a robust record-keeping system for all GST-related documents, including invoices, purchase bills, payment challans, and communication with vendors.

10. Failing to Respond to GST Notices

The tax department may issue notices seeking clarification or requesting additional information. Ignoring these notices can lead to assessments or penalties.
Solution: Promptly respond to any GST notices you receive. Seek professional guidance if required to ensure an accurate and timely response.


Filing GST returns is a critical component of your business’s compliance framework. By steering clear of the common mistakes outlined above, you can ensure a smooth and efficient GST filing process. Regular updates, diligent record-keeping, and leveraging professional expertise when necessary are key strategies to mitigate risks associated with GST compliance.
At Apki Return, we specialize in providing comprehensive GST solutions tailored to your business needs. Our team of experts is equipped to guide you through the intricacies of GST filings, ensuring accuracy, timeliness, and peace of mind. Contact us today to navigate the GST maze with confidence and focus on growing your business.

For more details please visit our website Apki Return or or you can reach out to our Team on +91 7665156000, we would be happy to help you out in minimizing the errors while filing GST Returns.


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