Despite the fact that the GST laws have been in effect for almost 5 years, many errors are still being made by GST taxpayers when filing GST returns, especially GSTR3B and GSTR1. These errors are typically made out of carelessness, oversight, or a lack of conceptual understanding of the GST Acts and Rules sections. The issues emerge since these GST Returns don’t include an edit feature. Although many of these errors can be fixed in subsequent returns or the Annual Return, the consequences of such errors can be quite costly in terms of tax, interest, late fees, and penalties. Misrepresenting the recipient’s GSTN in GSTR-1

The most frequent error made in GSTR-1 is this one. The GSTIN of the recipients is incorrectly mentioned when data is fed into GSTR-1. This causes the recipient’s 2A to not reflect the invoice data, which has the effect of denying the recipient input credit. It is crucial that the GSTIN of the beneficiaries is correctly input when generating the accounts if the accounts are handled in software such as tally. Such errors may be corrected in GSTR1 in the succeeding months in accordance with the guidelines in Section 16(4) of the CGST Act.

Mentioning incorrect invoice information in GSTR1

Similar to GSTN, other invoice information including the invoice number and date is occasionally entered incorrectly. It has occasionally been noted that the invoice value listed in the GSTR1 invoice-by-invoice data does not match the invoice’s total taxable amount or the tax that was levied. Another typical error is to completely ignore data of one or more rates while correctly entering the entire invoice value when supplying rate-wise information for an invoice. In the end, this results in a mismatch between GSTR3B and GSTR1.

Indicating zero-rated domestic or exemption turnover

To receive a refund, exporters file their returns. There are two different forms of refunds. The first step is a tax refund for the exportation period. The refund of the input tax credit on purchases is the second. Rule 89 of the CGST Rules provides a formula to calculate it. However, if you fill it out incorrectly, your refunds will never be processed.

The cause is that data from GST returns is sent to ICEGATE. The portal does not push incorrect data when it is entered into the return. The worst aspect is that notifying the department does not involve a laborious process. Additionally, the return sent using GSTR 3b can’t is changed.

Detailing Inward Supply in the Outward Supply Table and vice versa

Although it may seem strange, I have personally witnessed accountants or assistants occasionally insert data for outgoing supplies into tables intended for incoming supplies and vice versa. If the tax impact is not very big, it might not be noticed for several months and won’t be seen until it’s time to prepare annual returns or when it’s compared to the books of accounts. If corrective action is not performed, it may result in notices from the Department under Sections 73 or 74 of the CGST Act, either by the correction in succeeding months or in the Annual return.

B2B supply is being introduced into the B2C supply

 B2B supplies may occasionally be listed alongside B2C supplies. Because it is not shown in his GSTR-2A, the recipient is unable to use the ITC credit. This error is typically made when the supplier’s GSTIN is not immediately available at the time of uploading GSTR-1. It could possibly be because the supplier’s GSTIN was not entered, was not included in the invoice, or was not updated in the accounts. But an adjustment can be made to fix this error in the coming months.

Presenting products as B2B supplies to tax-deductibles

In the case of Tax Deductors, GSTIN is often TAN based, and unless the Tax Deductor has accepted standard registration, deliveries to them are a B2C transaction. It is a typical error to list supplies to such Tax Deductors in the GSTR 1 as B2B suppliers. Such errors may also be amended in GSTR1 for succeeding months to fix.

Failing to file your NIL return

Some people continue to believe that the taxpayer does not need to submit the GSTR-1 if there are no sales during the tax period. However, because of this oversight or error, the GSTR-1 Form’s late filing penalties must be paid. Therefore, it should be emphasized that every GST-registered taxpayer must file a NIL return to indicate that they had no transactions during the tax period.

Submitting information under the incorrect GST head

There are numerous cases where the taxpayer declares the outbound supply in the incorrect head because the GSTR-1 Form contains various heads. One of the frequent instances of this is providing incorrect information for exempt and zero-rated supplies. In order to avoid these errors, the taxpayer must correct them when filing the GSTR-1 Form.

Trusts and Societies’ Responsibility

Charitable Trusts and Societies frequently receive funding from sources like rent from stores, go-downs, wedding venues, etc. Since these activities are not exempt from GST, Trusts and Societies must register for GST if their annual revenue exceeds Rs. 20 lakhs. However, it has been noted that registration may not always be accepted. In order to prevent future tax, interest, and penalty assessments, this should be taken care of.

Confusing Zero-rated supply vs Nin-rated supply

Despite the fact that they do not signify the same thing, many taxpayers conflate zero-rated and nil-rated supplies. Only exports and supplies to SEZs often fall under the category of zero-rated supplies. However, when it comes to nil-rated supplies, all products and services with a 0% tax rate fall under this heading. In the case of nil-rated suppliers, no input tax credit may be claimed.


Before filing GSTR make a thorough understanding of various types of returns. Keep a check of all data when entering it online before filing the taxes. This will ensure you do not make any mistakes while filing the returns. If filing your GST Returns without any mistake feels like a tedious process then contact PhoenixTax- GST Consultant in Tambaram, Chennai who can help file your Goods and Service Tax with ease.