Mistakes to avoid while filing GSTR Return

1. Avoiding the filing of a GST return in the absence of a sale or purchase

The majority of people believe that if there are no transactions for sale or purchase, there is no need to file a NIL return But that is not the case. According to GST Law, even if no transactions occur during a tax period, a person registered under GST is required to file a NIL return.

2. GST return treatment for Zero-rated and Nil rate supply is the same

Many registered users consider zero-rated and nil-rated supplies to be the same. However, there is a significant difference between zero and nil-rated supplies.




Nil-rated supplies are those that attract a GST of 0%. ITC cannot be claimed on such supplies.

zero-rated supply” includes Supplies made overseas (i.e. Export) and to Special Economic Zones (SEZs) or SEZ Developers. This supply attracts a GST of 0%. For such supplies, ITC can be claimed.

3. Ignoring GSTR 1 and GSTR 3B reconciliation

If a registered person fails to match his GSTR 3B and GSTR 1 returns on a monthly basis, he is making a serious error. Before filing GST returns, each individual should ensure that their GSTR 3B and GSTR 1 returns are monthly matched.


4. Failure to pay the tax under Reverse Charge mechanism (RCM)

The government has prescribed a number of goods and services for which recipients must pay tax under reverse charge. Failure to pay reverse-charge tax may result in additional interest payments and the loss of input tax credit. It should also be noted that reverse charge tax cannot be paid using Input Tax Credit (ITC). It must be paid in cash. After paying the Reverse Challan, taxpayers can claim input tax, which can be offset against output tax.



5. Declaring export sales in the regular sales column

If a person declares export sales in the column of regular sales instead of zero-rated supplies, the GST refund may be denied. As a result, when providing information about export sales, one must exercise caution.



6. Delay or not filing of GST return on or before the due date

The importance of filing GST returns on time cannot be overstated. Failure to file GST returns on time may result in the cancellation of your GST Registration, and it also results in financial penalties.


7. Incorrectly entering invoice details when filing GSTR 1

When the recipient of goods and services provides his GST number to the supplier of goods and services, the supplier must enter the recipient’s invoice details. Invoice-level information provided by the supplier in GSTR 1 is auto-populated in form GSTR 2A, allowing the recipient to claim an input tax credit for GST tax paid to the supplier. If the supplier feeds the incorrect invoice and/or fails to report the invoice, the recipient may be denied the input tax credit for the invoice that was incorrectly declared in the GSTR 1 return.