What is GST? How to File Returns Online and Common Mistakes to Avoid!

16 Nov, 2021 admin
What is GST? How to File Returns Online and Common Mistakes to Avoid!

The Goods and Services Tax (GST) is a tax that applies to both goods and services. In India, various other indirect taxes, such as excise duty, VAT, and services tax, have essentially been replaced by an indirect tax. Parliament passed the Goods and Services Tax Act on March 29, 2017, and it took effect on July 1, 2017.

GST is a tax levied on the provision of goods and services. India's Goods and Services Tax Law is a multi-stage, destination-based tax that applies to all value additions. It is a national, indirect tax statute covering the entire country.

There are four forms of GST listed below:

  1. CGST: Central Goods and Services Tax (CGST) levied on intra-state supplies of goods and services.
  2. SGST: State Goods and Services Tax (SGST), similar to CGST, is levied on the sale of goods or services within a state.
  3. IGST: Integrated Goods and Services Tax (IGST) is levied on interstate sales of goods and services.
  4. UTGST: Union Territory Goods and Services Tax (UTGST) charges are levied on the supply of goods and services in any of the country's Union Territories. The Andaman and Nicobar Islands, Daman and Diu, Dadra, Nagar Haveli, Lakshadweep, and Chandigarh are on this list. UTGST is charged in addition to CGST.

How to File GST Online

If you're unsure about how to register for GST, here's a step-by-step tutorial to help you.

Step 1: Go to the GST portal and register. Under Taxpayers, click the Register Now button (Normal).

Step 2: Select Register Now from the drop-down menu, then New Registration Button. Select 'I am a Taxpayer' under New Registration. Fill in the required information, such as the state, district, business name, PAN, email address, and phone number. You will receive an OTP.

Step 3: Enter the one-time password (OTP). Proceed to the next step.

Step 4: After sending the OTP, you will receive a Temporary Reference Number (TRN). Note it down.

Step 5: Return to the GST portal and click the Register Now button. Choose the TRN button and type the number in the box provided. To progress to the next stage, you will get an OTP.

Step 6: You'll see that your application is still in the draft stage. After that, you must select Edit.

Step 7: Now, you must complete Section B, which consists of ten sections, and must contain all the completed information. Photographs, the taxpayer's constitution, evidence of business registration, bank account information, and a permission form are all maintained.

Step 8: There are a few declarations that the GST filer must present. DSC, e-sign or EVC is used for verification purposes.

Step 9: The Application Reference Number or ARN will be issued to your email address and cellphone number.

Mistakes to Avoid while Filing GST

It is exceedingly difficult to correct a mistake made while completing GST returns; therefore, be extra cautious when doing so. Here are some of the most typical GST filing mistakes:

  • Errors in Data Entry occur when GSTR-1 necessitates a large amount of data entry, and the problem arises. A mismatch with GSTR-3B is a mistake.
  • Errors in Input Tax Credit occur when a person inputs a tax credit while submitting his/her taxes; they make a mistake. If he/she specifies a more significant amount, the filer cannot change the return, and the taxpayer will be penalized.
  • If you don't file your GST return every year, even if there are no transactions, you won't be able to file your GST return the following year.
  • Incorrect GST Head: Tax paid under one head cannot be used to pay tax under another authority. You'll run into issues with working capital.
  • Confusing nil-rated supply refers to exports and any supply made to a Special Economic Zone that is zero-rated. The nil-rated supply category includes goods and services with no GST, and you can't claim the Input Tax Credit.
  • Reverse Charge Mechanism: You must assess whether or not the reverse charge mechanism applies to you.
  • Reversal of Input Tax Credit: If payment to suppliers gets delayed for more than 180 days, you cannot claim the Input Tax Credit. The input tax credit reverses in such cases.
  • Be Vigilant, Be Profitable: A little attention while inputting data for GST returns may save you a lot of time and aggravation! Enter the information correctly and reap the benefits of GST.

Things to Know before GST Return Filing

Have you ever wondered, what is GSTR 1? What is GSTR 2a/2b? What is GSTR 3B? Or have you ever thought about how to file GSTR 1? How to file GSTR 3B? Or how to file a NIL GST Return? To know more about all this, one should first have a basic idea of how GST return filing is done.

Businesses that are GST-registered must file returns on a monthly, quarterly, and annual basis, depending on the kind of company, through the Government of India's GST site before the GST return due date. They must report the sales and acquisitions of products and services as well as the taxes collected and paid.

A GST return is an official document that contains information about all purchases, sales, tax paid on investments, and tax collected on sales. The taxpayer should file the GST returns and bear the tax burden before the GST return due date.


To conclude, one must always go further with GST reconciliation that essentially entails reconciling the data provided by suppliers with the purchase data of the recipient. It involves comparing the GSTR-2A/2B reconciliation, which is auto-populated from supplier data, with the purchase data recorded by the supply receiver. This matching idea also assures that all transactions that occurred over a certain period are captured.

For further assistance on the GST Return Filing Process and GST Reconciliation, Visit WeP Digital

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