Mistakes to avoid in Charging or Reversing of GST

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As we know GST presently has no such provision to revise or modify a return once it has been filed. While the current system for amending returns is proposed. Therefore, he has to be incredibly alert while filing his GST returns to avoid the suffering of unnecessary reconciliations. In this article, we will discuss the mistakes to avoid in charging or reversing GST.

GST Outward side

GST requires to be accused of following incomes but Not charged.

  1. Sale of fixed asset or sale of the car – Forgotten to charge GST
  2. Rent On Commercial Property obtained But GST has been received & paid
  3. Freight Charged By Supplier On Goods Sold But forgot to indict GST on that
  4. Commission Income received but GST NOT CHARGED
  5. Purchase return indicated as “Sales” and discharged GST as “Outward tax” mistakenly.

Mistakes to avoid in Charging or Reversing of GST

If incorrectly taken ITC but not reversed IT

  1. ALLEGED wrong ITC (u/s17(5) of “FMCG PE” FOOD & BEVERAGES | MOTOR CAR IF less THAN 13 PERSONS | construction | Goods Destroyed/lost | Personal Expenses or Exempted Goods Manufactured then you require to reverse it (R.42/43)
  2. Mistakenly claimed ITC twice. Expenses/Purchase bill embarked twice So claimed ITC twice
  3. Mistakenly Claimed IGST instead of CGST + SGST
  4. Incorrectly claimed CGST + SGST instead of IGST
  5. RECONCILIATION OF 2A VS BOOKS ITC = NOT CLAIMED ANY ITC OR FORGOT TO CLAIM ITC LIKE bank charges, ICD baggage charges, Air Freight taxes, Shipping Bill company charges, Telephone charges, etc. These Expenses on which Accounting entries are done generally done in aggregate.
  6.  Sales return indicated as Purchase & Claimed ITC on that. Wrongfully.

GST under RCM

If any GST required to be paid under RCM but not paid

  • Advocate Fees
  • Security Services
  • Import of services
  • Freight services (Whether On Inward Or Outward)

Crucial GST Return Filing Mistakes to Avoid

1 Not filing GST returns for zero sales

It is significant to be aware that you have to file GST Returns despite zero sales. If you Fail to do so, you will be compelled to pay a penalty for late filing/not filing GSTR.

2 Errors while invoice-wise uploading data in GSTR-1

GSTR-1 compels that invoice-wise data be uploaded of all outward supplies such as invoice date, invoice amount, place of supply, rate of tax.

3 Claiming the wrong input tax credit

GSTR-2a is an auto-generated return in which a taxpayer’s possession and related input-tax credit are proclaimed by the respective supplier.

4 Reversal of Input Tax Credit and Blocked Credits

As per law, ITC should be reversed in some specimens such as – Input goods or services partly utilized for personal purposes, capital goods sold, free samples were given to customers or business partners, goods lost, goods demolished, goods or service not received, payment not prepared to suppliers within 180 days, etc. 

An Overview of GST- Benefits & Important Components

If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.

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