GST was introduced by the Union Government on 1st July 2017. The Goods & Services Tax was i...
Prior to the GST regime, the VAT system existed, which allowed revision of the returns in case any error was identified. But such privilege is not allowed in case of filing returns under GST. Till the time such privilege is not made available under GST, the assessee needs to be extremely careful to avoid committing mistakes in filing of GST returns in order to avoid any unnecessary hardships in the future.
Incomplete Aadhaar Authentication by the taxpayer
One of the mistakes in filing of GST returns is incomplete Aadhaar authentication of the taxpayer. Rule 10B has been notifies from 1st January 2022 onwards which mandates the taxpayer to get his Aadhaar authentication done for the following purposes:
If the taxpayer fails to get his Aadhaar authentication done, then it may lead to a number of problems for him such as in case where his GST registration has been cancelled and when he applies for revocation of such cancellation, he realises there is mismatch of information between the number mentioned in his Aadhaar and the number in GST database. Therefore, it is always recommended for a taxpayer to get his Aadhaar authentication done.
Non-compliance with Rule 86B
Non-compliance with the Rule 86B on restriction on the use of electronic cash ledger falls among the many mistakes in filing of GST returns. Rule 86B came into effect from 1st January 2021. This rule states that the taxpayer is not supposed to use the amount in the electronic cash ledger to discharge his liability towards output tax in excess of 99% of such tax liability. In cases where the value of the taxable supplies other than exempt supply and zero rated supply exceed 50 lakh rupees.
The above restriction shall not apply in the following cases:
The GST department has sent notices of non-compliance of Rule 86B to many taxpayer in recent times. Therefore, it becomes important for those taxpayers whose monthly taxable value exceeds Rupees 50 lakhs to check whether they have complied with Rule 86B or not.
Taxpayers not claiming TDS and TCS
It is observed in several times that there is lack of awareness among the taxpayers related to claiming of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) and commit mistakes in filing of GST returns under the provisions of GST.
Under the scheme of GST, TDS is deducted by the Central Government and State Government, Government Agencies, Local Authority and notified persons at the rate of 1% where the total value of supply under a contract exceeds the amount of 2.5 lakh Rupees as per the invoice exclusive of GST. This TDS is required to be deposited in the credit account of government which can be claimed by the recipient. This TDS reflects in the Electronic Cash Ledger of the assessee which can then be used by the assessee to pay off the GST liability including the liability under Reverse Charge Mechanism.
According to GST, every e-commerce operator need to collect an amount equal to 1% percent of the net value of the taxable supplies made using its platform by the suppliers where the e-commerce operator collects the consideration made against such supplies. This TCS is required to be deposited in the credit account of government which can be claimed by the recipient. This TCS reflects in the Electronic Cash Ledger of the assessee which can then be used by the assessee to pay off the GST liability including the liability under Reverse Charge Mechanism.
The false assumption on part of the taxpayers that TDS/TCS under Income Tax and accounting it for the same is among one of the mistakes in filing of GST returns. The TDS/TCS not claimed by the taxpayer is a direct loss to them.
With the new GST regime in place where the liberty of changing the returns made by the taxpayer is not present, it is extremely important to not to commit mistakes in filing of GST returns. The mistakes can be in the form of the Incomplete Aadhaar Authentication by the taxpayer, non-compliance with the Rule 86B on restriction on the use of electronic cash and not claiming TDS and TCS is another mistake under GST as the TDS/TCS not claimed by the taxpayer is a direct loss to him.
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