15 Basic GST Mistakes, Taxpayers should avoid

Normally These are areas that an Auditor would be checking in first stage while filling GSTR 9 . Of Course the scope is vast looking in GST Audit and annual return . So here I pointed out Bullet points which I have felt to share experience while dealing preparing for GST Annual & Audit assignments ( Mostly looking to Profit Loss account )

Better one should identify these basic mistakes before Year end only .

Outward side -

GST needs to be charged on following incomes but Not charged.

1. Sale of fixed asset or sale of car - Forgot to charge GST On these

2. Rent On Commercial Property received But GST has been not collected & paid

3. Freight Charged By Supplier On Goods Sold But forgot to charge GST on that

4. Commission Income earned but GST NOT CHARGED

5. Purchase return shown as "Sales " and discharged GST as "Outward tax" wrongly.

RCM -

if any GST needed to be paid under RCM but not paid

(1) Advocate Fees

(2) Security Services

(3) Import of services

(4) Transportation / Freight ( Whether On Inward Or Outward )

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ITC SIDE

If wrongly taken ITC but not reversed IT.

1 CLAIMED 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 need to reverse it (R.42/43)

2 Wrongly claimed ITC twice. Expenses/Purchase bill entered twice So claimed ITC twice

3 Wrongly Claimed IGST instead of CGST + SGST

4 Wrongly 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 freight charges, Air Freight charges, Shipping Bill company charges , Telephone charges etc These Expenses on which Accounting entries are done normally done in total.

6. Sales return shown as Purchase & Claimed ITC on that . Wrongfully.

To Conclude, make sure these mistakes are avoided and do the verification beforehand so that no issues faced at the time of finalisation of audit.

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