💡 Introduction
The Goods and Services Tax (GST) has simplified India’s tax system — but for many small and medium businesses, GST filing can still be confusing.
Even a small mistake while filing GST returns can lead to penalties, notices, or loss of input tax credit (ITC).
At BusinessRights, we’ve helped hundreds of SMEs and startups manage their GST filings smoothly. Here are the most common GST filing mistakes that every business owner should avoid.
⚠️ 1. Missing GST Return Deadlines
One of the most frequent errors small businesses make is missing the GST filing deadline.
Late filings can lead to:
Penalties and late fees
Interest on outstanding tax
Difficulty in filing subsequent returns
Always mark GST filing dates on your business calendar or automate reminders with BusinessRights’ compliance service.
📑 2. Incorrect or Incomplete Data in Returns
Many businesses file returns with wrong invoice details, mismatched GSTINs, or missing data.
Such mistakes can cause mismatches between GSTR-1 and GSTR-3B, leading to scrutiny or blocked ITC.
Always double-check your sales and purchase data before filing. Use accounting software or professional support for accuracy.
💰 3. Not Claiming Eligible Input Tax Credit (ITC)
Small businesses often forget to claim ITC on valid business expenses like:
Office rent
Professional services
Raw materials and supplies
If you miss claiming ITC in time, you lose that benefit permanently.
Maintain all GST-compliant invoices and reconcile them monthly with your GSTR-2B.
🚫 4. Using Wrong HSN or SAC Codes
Every product or service has a specific HSN (Harmonized System of Nomenclature) or SAC (Service Accounting Code).
Incorrect codes can lead to wrong tax rates and compliance issues.
Refer to the latest HSN/SAC list on the GST portal or consult experts at BusinessRights for proper classification.
🔁 5. Ignoring GST Reconciliation
Reconciliation between books of accounts, GSTR-2B, and supplier data is crucial.
If you skip reconciliation, you might:
Pay extra tax
Lose ITC
Face GST audit queries
Perform monthly reconciliation to identify mismatches early and fix them before filing.
🧮 6. Filing Under Wrong GST Category
Some businesses mistakenly register under the wrong GST type — for example, opting for the Composition Scheme when they exceed turnover limits.
This can lead to wrong tax payments and cancellation of registration.
Consult professionals before selecting or switching your GST scheme.
🏢 7. Not Updating Business Information
If you’ve changed your business address, nature of business, or turnover, you must update it in the GST portal.
Failure to do so can cause mismatch in invoices and returns.
Keep your GST profile updated regularly with the help of BusinessRights experts.
🚀 Conclusion
GST compliance is essential for every business, but filing it correctly and on time can be challenging without expert help.
Avoiding these common GST filing mistakes ensures:
✅ No penalties
✅ Smooth compliance
✅ Maximum input tax benefits
At BusinessRights, we simplify your GST journey — from registration to monthly filing and reconciliation — all at affordable rates.