GST Filing: Everything You Need to Know

May 27, 2021 in Documents


GST Return filing

Its been almost five years now, that the government has launched GST scheme. Many SME owners had a tough time to settle with new norms. Every other day, government is trying to lay down new regulations. if you want to avoid any sort of notice issuance, then you have to keep yourself upto date. In this article, I am gonna tell you about various things, which you need to keep in mind while filing your returns.

The Do's for a smooth GST filing experience.

These are the things which, as an SME owner, you need to do, for a smooth GST filing. Please note that these are just generic piece of advice. This, in no means, is a substitute to CA or tax practitioner's consultation.

File your GST returns with some time in hand.

File your returns prior to the last date provided by the government. This is to avoid the last moment rushing and avoid any unnecessary risk involved in crossing the deadline. In this manner, you can avoid interests and late fees imposed by the GST council. Have a deadline in mind, and get it filed before the actual date.

Data accuracy in GSTR-1 matters a lot.

As we know already, there are a lots of fields in GSTR 1. You need to be really really careful while filling up those columns. Once any wrong data is filled, then you wont be able to rectify it in the final government portal. Being careful is the only way that can help you out in this regard. Scrutinize each column and discuss it with some tax practitioner or CA, if required.

Have a proper documentation for filing your GST

It is the God word for accounts, documentation. For audit purposes, documentation is extremely important. Upload the exact documents whatever you have recorded it till now. Maintaining proper records/documents is considered to be a healthy practice under GST regulations set up by the government.

Read More - Digital Documentation: 5 Benefits for SMEs

Double checking these things are a must!

Be it your sales register or fixed asset register, or payment challans or e-way bills, double checking always helps. Keeping an eye on the errors, can prevent a potential notice to you. During the closure of books of accounts, or during scrutiny notice, double checking helps a lot.

Reconcile your returns with your books of accounts

So, this is one of the things, that would help you out in a lot of manner. Do reconciliation on a regular basis, and don't leave it for the year end filing process. identify errors, and change it in records of the upcoming month if required.

The Donts which you should avoid at any cost.

Now that you know what are the things that should be taken care of, lets see the things which you need to avoid. These are very simple steps, but needs to be considered when it comes to filing your returns.

Paying under wrong GST heads

You need to extra careful with this thing. There are currently no provisions for Inter utilization of taxes. Payment made under wrong tax head often leads to working capital mismanagement. So that's why, this has to be avoided at any cost.

Categorize 0 rated supplies as Nil rated supplies and vice versa

This is one of the most common errors. The supplies which are supplied to SEZs or the export supplies, are called as Zero rated supplies. On the other hand, Nil rated supplies are the supplies whose rate of tax is 0% pre decided by the government.

Ignoring Nil returns

Usually, what happens in most cases, if businesses don't have any transactions for a longer time, they ignore the Nil returns. But this has to be avoided. Even though you are not having any active transactions, but still, you would be required to file the returns. This will help you keeping things simpler while the annual returns filing.

Apply wrong tax slabs

There are different tax slabs for different products. Before generating the invoice, you need to check with the present tax slab, which the article lies into. Keep your knowledge of tax slabs up to date while issuing the invoice. In this way, you can avoid a large part of the errors that might had happened.

Pay tax even if the article falls in RCM category

Reverse Charge Mechanism, is being introduced by the government, such that the liability of paying the tax is upon the recipient of the service. This thing has to be counted upon, while filing your returns. Or else, it might happen that you would end up paying double taxes. Please note that RCM is payable only by cash, and you cannot claim your input tax credit for this.

Dont get scared by reading the above precautions. I know, initially it takes some time to analyze whats going on, because its something very new still in Indian Markets. People, usually take help of sophisticated softwares to get their filing done. Our product, TranZact, has a great deal of such facility. You can easily check that out by clicking on the link. Regarding GST, it becomes a lot more easier to tick your check box of filing, when you are with softwares like TranZact. Thanks for reading, stay tuned for more such articles.


TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.