Top 10 GST Filing Mistakes to Avoid in 2024

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GST is a good business, where one can get easily built up, and rules are constantly updated. By 2024, it will be more important to businesses than ever to do things effectively than before the beginning of the 20th century. Rough rides should never be underrated, even though they make you sweat and let you find fines.

That is where you get the solution to this problem at CaptainBiz. They are neither new in this field nor ignorant. On the contrary, they are fully conversant with the module and offer easy ways to help businesses stay focused. In this article, by listing 10 simple GST filing mistakes that you should not make in 2024 and indicating how CaptainBiz can bring you back on the right track, we will tell you how you can avoid them.

captainbiz top mistakes to avoid while gst filing in

GST Filing Mistakes

  • Expert Guidance:

Through its GST regulations and compliance requirements, CaptainBiz proves competent with GST laws and assists businesses in meeting their obligations, thus clarifying these rules for them.

  • Automated Record-Keeping:

The CaptainBiz system provides businesses with automated records-keeping tools that maintain precise and updated financial records, minimising the probability of mistakes in GST calculation as well as filing.

  • Customised Compliance Checklists:

CaptainBiz makes checklists of compliance that are adapted according to each company’s particular needs, assisting with staying organised and ensuring that all the relevant steps are taken to fulfil the GST requirements.

  • Real-Time Monitoring:

Captain Biz provides real-time monitoring of tax activities and alerts the business as soon as discrepancies and problems are detected, so they can be solved quickly.

  • Training and Education:

CaptainBiz supplies businesses and their employees with training and educational materials and educates them thoroughly with the necessary knowledge and skills they need to file accurate GST returns and to avoid commonly made mistakes.

  • Professional Assistance:

Businesses can rely on CaptainBiz to provide any professional help with GST files; thus, they provide accurate and timely return submissions to avoid penalties or fines.

Through the use of CaptainBiz’s whole range of services and tools, companies can decrease the risk of filing mistakes and thereby comply with regulatory bodies.

Also Read: 8 Common Mistakes To Avoid While Filing GSTR-2A

Top 10 GST Filing Mistakes to Avoid and How CaptainBiz Can Help Avoid Them? 

  1. Incorrect documentation of the Input Tax Credit

The most commonly made mistake by companies on input tax credit (ITC) reporting happens during GST filing. Noteworthy is the incorrect claiming of ITC, which might lead to a failure to offset GST liabilities, which would be a source of additional expenses. CaptainBiz provides all-in-one packages that assist in keeping ITC documentation up-to-date using cutting-edge technology, along with hands-on assistance from tax experts.

  1. Procrastination and Last-minute Submission

Non-filing and non-payment of GST at a later stage may be penalised with substantial penalties and interest. Several enterprises are experiencing failure to meet deadlines because they do not have appropriate mechanisms or lack knowledge. CaptainBiz eases the burden of filing by posting due date reminders and automating the entire process to make sure that there is no violation of any regulatory requirement. 

  1. Inadequacy in the Classification of Goods and Services

Data entry errors or technical glitches can trigger differences in tax calculation and compliance issues. CaptainBiz uses intelligent algorithms along with its expertise in the specific industry to allow for the accurate classification of services and goods, thus reducing errors at the GST reporting stage.

  1. Not making use of the reverse Mechanism

In certain cases, the RCM requires the recipient to calculate and pay the GST instead of the supplier. Failure to adhere to RCM conditions can lead to violations and implications being drawn up. CaptainBiz is developed as a complete RCM solution, which shows all the nuances of this mechanism to fit in with the existing standards of compliance.

  1. Contravening the E-Invoicing Regulation

2024 is a year where e-invoicing becomes a must for companies registering turnover over a certain amount of revenue. Not complying with the requirement of e-invoicing could result in hardships, including the risk of penalties and operational confusion. CaptainBiz can smoothly link e-invoicing systems and allow businesses to issue and transmit invoices in accordance with the stipulated regulations with little effort.

  1. Missing of Documentation and of Records-keeping

Appropriate documentation and record-keeping become mandatory to strengthen claim substantiation and to exhibit compliance with audits. Nowadays, most companies find it hard to organise their records appropriately and avoid trouble during GST filing. CaptainBiz offers sophisticated solutions for document management, ensuring that all the important documents are stored in secure places and easy to access when needed. 

  1. Insufficient provision of GST compliance training

Lack of proper training and general knowledge among board members can make GST errors and compliance problems even worse. CaptainBiz designs bespoke training modules that take into consideration the major aspects of a business, helping employees understand the GST law. 

  1. Reconcilement of GST Returns with Financial Statements

Inconsistencies between returns on GST and financial statements are likely to attract attention on the part of tax authorities and to be a source of flagging throughout tax audits. CaptainBiz provides up-to-date reconciliation tools and the know-how of financial experts to guarantee the accuracy of GST filings and the consistency between financial records. As a result, the probability of finding discrepant entries and compliance challenges is dramatically reduced. 

  1. Providing Amendment and Rectifications of Descriptions

GST filings containing mistakes or omissions must be rectified promptly to add footnotes and amend them to prevent penalties and legal implications. CaptainBiz provides an inbuilt system along with professional assistance to make the correction process smooth and enable companies to correct mistakes quickly and have a smooth compliance process as required by the regulators.

  1. Lack of Continual Monitoring and Compliance Upgrades

The domain of GST regulations is characterised by continuous changes and updates, implying that for enterprises to thrive, they ought to be vigilant and in sync with the current requirements. Ignoring routine supervision and updates on compliance may mean a loss of trust in regulatory authorities and penalties. The CaptainBiz solution provides businesses with immediate updates and proactive alarms, making them aware of regulatory changes and helping organisations make adjustments in time to stay compliant.

Also Read: GST Error Codes For Return Filing – With Solutions

GST Filing Mistakes and How CaptainBIZ helps to Solve

SR. No GST Filing Mistake How CaptainBiz Helps
1 Incorrect Tax Classification CaptainBiz offers expert advice on GST regulations to help classify goods and services correctly.
2 Inaccurate Input Tax Credit Claims CaptainBiz provides automated record-keeping tools for correct record-keeping to claim input tax credits.
3 Late Filing CaptainBiz serves the purpose of real-time tracking and alerts to avoid any delays in the filing of GST returns.
4 Calculation Errors CaptainBiz provides automatic computation functions that can be used to reduce the mathematical mistakes in GST calculations.
5 Ignoring the Reverse Charge Mechanism CaptainBiz gives personalised compliance checklists that recognise reverse charge mechanism transactions.
6 Non-Compliance with E-Invoicing Requirements CaptainBiz provides e-invoicing solutions and alerts so that clients will be in compliance with e-invoicing regulations.
7 Overlooking Place of Supply Rules CaptainBiz gives instructions for identifying the correct place of supply to avoid wrong GST reporting.
  8 Missing GSTIN on Invoices Facilities invoice management system to make sure GSTIN is mentioned on all the invoices.
9 Improper Record-Keeping CaptainBiz utilises automated record-keeping tools and reminders to ensure data is kept up-to-date for compliance purposes.
10 Not Reconciling GSTR-2A with Purchase Invoices CaptainBiz provides the reconciliation features that reconcile the GSTR-2A with purchase invoices to ensure the precision of input tax credit.

Common Mistakes to Avoid

This section explains the most common mistakes made in filling out the GST returns and gives some tips on how to avoid them.

  • Missing Filing Deadlines

Filing deadlines is another paramount aspect of GST compliance. Late submissions can lead to penalties and financial penalties, which can hurt your business’s financial health. To avoid this error, create reminders and establish a robust filing schedule to be able to file GST returns on time.

  • Inaccurate reporting of sales and purchases.

Recording sales and purchases incorrectly can cause differences in your GST returns, thus prompting audits and investigations by tax authorities. It is important to verify all invoices and payment entries before filing your returns to avoid errors. 

Exploiting Technology in Error-Free Filing

Technology has a major impact on the GST filing process and minimising errors. In this section, we will look at how businesses can use technology to make GST compliance easier.

  • Implementing GST Accounting Software

The use of robust GST accounting software will help simplify the tax compliance process by automating repetitive tasks and ensuring the accuracy of the calculations. Find software tools that are GST-compliant and include features such as invoice generation, reconciliation, and reporting.

Also read: How To Use Accounting Software To File GSTR-7, GSTR-8, And GSTR-9?

Understanding HSN and SAC Codes

captainbiz understanding hsn and sac codes

Accurate categorization of goods and services is an issue of common occurrence, which can result in incorrect taxation and penalties. Businesses shall correctly enlist their products and services under the Harmonised System of Nomenclature (HSN) and the Services Accounting Code (SAC). Failure to make such a payment can result in underpayment or overpayment of the taxes, which then triggers compliance issues.

Importance of Proper Documentation

Partial or incorrect invoicing is a formula for a tax filing error. Businesses should ascertain that their invoices contain all the required information, including GSTIN, invoice number, date of issuance, description of goods/services, HSN or SAC codes, and applicable taxes. Inadequate documentation may result in the slowing of tax refunds and the suspicion of the tax authority.

Fulfilling the Due Dates for Smooth Compliance

Timely filing of GST returns is important to avoid penalties and interest charges. The businesses are obligated to observe the due dates for filing GSTR-1, GSTR-3B, and other returns that are specified accordingly. Besides the financial fines for postponing filing returns, there will be interruptions in ITC, which makes it more difficult for the management to control the cash flow.

Comprehending RCM Applicability

RCM (Reverse Charge Mechanism) needs the recipient of supplies to pay GST in place of the supplier in certain cases. Ignoring RCM protocols or misusing them may lead to noncompliance by the patients. Companies are required to do an in-depth audit of RCM issues and pay their taxes by the set deadline to avoid penalties. 

Embracing Digital Transformation

Companies should file electronic invoices and submit reports electronically. Refusal to comply with e-invoicing standards will most likely result in the rejection of invoices and non-given credits by the other party. It will be indispensable to build the appropriate electronic invoicing systems to get the GST process in order and to comply with all regulatory requirements.


The last one is to avoid GST filing mistakes to be in line with the regulatory requirements and to minimise the probability of penalties or fines. These kinds of mistakes can be wrong classification of tax categories, inaccuracy of records, etc. These mistakes can affect the financial position of the company and its reputation.

Such risks can be appropriately addressed by utilising services and tools like CaptainBiz. With its one-stop platform, CaptainBiz provides specialist guidance, automated recording, instantaneous reporting, and custom-made compliance to simplify GST regulations for businesses.

Along with providing the training and educational resources, CaptainBiz has also provided businesses and their staff with the required knowledge and skills to file correct GST returns. Therefore, by predicting and correcting these common GST filing mistakes, using tools like.

Through CaptainBiz, firms can rest assured that they are GST compliant and can focus on developing their businesses and achieving success in 2024 and beyond.


  • Which are the most common errors that businesses make when filing GST returns?

Typical errors include incorrect reporting of sales or purchases, mismatches in the input tax credit claims, and wrong tax calculations.

  • How can I guarantee reliable recording of sales and purchases?

Keep detailed records of all transactions, reconcile invoices with financial statements periodically, and employ accounting software that helps with GST compliance. 

  • What should I do if I see errors in the GST returns I have already filed?

Rectify mistakes immediately by filing an amendment return or by correcting the mistake in the next filing period to avoid penalties and interest charges. 

  • Why is the reconciliation of input tax credit claims necessary?

Reconciling input tax credit is what makes sure you claim only the credible credits on the purchases and there is no discrepancy that may lead to audits or penalties.

  • What are the ways to avoid mistakes in tax calculations?

Double-check all calculations manually or use computerised software to be 100% certain that taxes are calculated correctly before filing your returns.

  • What are some implications of the incorrect filing of GST returns?

Erroneous filing of GST returns may attract penalties, fines, and even legal actions that may lead to a bad business reputation and a loss of finances. 

  • Should the GST filing be done by a professional?

Yes, working with a tax professional or hiring a GST consultant could help, ensuring compliance with GST laws and regulations and reducing the likelihood of committing errors. 

  • What are the implications of not complying with the annual return filing in GST?

Disregarding the filing of annual returns, like GSTR-9, can result in regulatory scrutiny, penalties, and legal issues. The annual return filing provides a general overview of taxpayers financial transactions, and non-compliance can lead to compliance issues and financial implications for an organisation.

  • How should businesses respond to mistakes in their GST returns?

Businesses shall inform and correct any errors or omissions in the filed GST returns by using the relevant amendment forms. Failure to correct the errors can cause mismatches in tax liabilities and bring difficulties in the reconciliation procedure with the tax authorities, thus making proactive error correction essential. 

  • Why is it important to seek professional help for GST?

Engaging chartered accountants and GST practitioners as professional assistants is what businesses need to implement GST compliance efficiently. Qualified professionals provide expertise, guidance, and insights into regulatory changes that help businesses maximise tax results and comply with legal requirements.

author avatar
Rutuja Khedekar Freelance Copywriter
Rutuja is a finance content writer with a post-graduate degree in M.Com., specializing in the field of finance. She possesses a comprehensive understanding of financial matters and is well-equipped to create high-quality financial content.

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