GSTR Glitches

Common problems while filling GST returns

There are certain glitches happen while filling GST returns by the taxpayers due to many reasons. Sometimes due to negligence, lack of knowledge or understanding tax payers often commit some of the very common mistakes while filing the return. Let’s have look over them and their solutions.

1. First and foremost mistake done while filing return is choosing the frequency option by a normal tax payer: While filing the first return the tax payer is given an option to choose from quarterly /monthly filing of GSTR-1 in a financial year. For making the choice the payer has to answer a question i.e., whether your aggregate turnover during the previous financial year was up to Rs 1.5 crore or whether it is expected to overpass the former limit during the current  financial year?
   Though the question may seem too simple but one can draw variant meanings from these words. Thus the taxpayer must read it carefully as the option is available only once in a financial year.
2. Wrong filing of supplies under different heads: Though this may be looked upon as silly mistake but many a times it is committed by even the knowledgeable accountants/assistants. This common mistake of writing outward supply data into inward supply data and vice- versa can have dangerous outcomes like notice from department under section 73 or 74 of the CGST act if not corrected since months.

3. Showing ITC under wrong heads: Many a times the ITC available under section 4(A) (1) on import of goods is shown under section 4(A) (2) as an import on services or normal ITC.

4. Reversal of ITC: The provisions of reversal ITC are attracted in case of disabling of payments to suppliers in 180 days, input tax partly used for personal purpose, capital goods sold, free sample distribution, goods destroyed etc. Other than this there are certain goods on which ITC could not be claimed. While filing the return one should keep in mind this provision as the failure could attract interest and penalty charges.

5. Non filing of nil return: Many tax payers have a misconception about nil return i.e., it is not to be filed. But the reality is that a nil return is which filed wherein there is not a single business transaction however this will not give an excuse for tax payer for not filing the return. Hence it is mandatory to file the same.

6. Misinterpretation of zero rated supplies as nil rated and vice versa: Many people think zero rated and nil rated supplies as alike. But the reality is far from this as zero rated includes usually exports or supplies in SEZ area. Whereas nil rated supplies means supplies with 0% GST rate.

7. Mistakes in uploading data invoice wise in GSTR-1: In GSTR-1 the tax payer is required to upload the details of outward supplies invoice wise i.e., date, invoice number, place of supply, rate of tax etc. As a lot of information is filed that’s why many times there is error in filing, this could lead to mismatch of information of GSTR-1 with GSTR-3B. Therefore one should file the return carefully as no chance for alteration is provided.

8. Wrong GSTIN of recipient in GSTR-1: Many a times mistake is committed while mentioning the GSTIN in GSTR-1 this may lead to non-availability of ITC as it is not reflected while filing GSTR-2A. However, this glitch is retraceable.

9. Wrong adjustment of ITC: Certain steps are mentioned by the law for setting off the outward liability i.e.,

Any IGST ITC available must be used for set off of IGST liability followed by CGST and SGST. So the care must be taken while claiming the ITC.

10. Export sale shown as a normal sale: Sometimes export sale is shown as a normal sale in GSTR-3B or wrong /inappropriate information is filed in TABLE -6A of GSTR-1 which leads to problems in refunds either at GSTN or customs.

11. IGST sale is shown as CGST/ SGST sale: It is a very common mistake to show IGST sale as CGST/ SGST sale or vice versa due to insufficient conceptual understanding. So you do have to pay attention towards these mistakes while they could be alternated in subsequent months/ returns.

12. Uploading gross turnover instead of taxable turnover: While filing GSTR-3B one needs to upload the taxable turnover not the gross turnover. If the glitch had taken place then one must reduce/ alter the taxable turnover in subsequent returns.

13. Showing B2B supply in B2C supply: This common mistake is acted when GSTIN of the supplier is not readily available while filing GSTR-1 or due to non-up gradation of data in account. However, this could be changed in for coming months.

Thus, one must be vigilant while filing the returns as these glitches could have commendable consequences later on.