ERRORS COMMONLY COMMITTED WHILE DISCHARGING TAX LIABILITY - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

3. ERRORS COMMONLY COMMITTED WHILE DISCHARGING TAX LIABILITY It is crucial to understand the common errors the taxpayers are making while filing the statutory returns. These errors can result in incorrect assessment which ultimately lead to short payment or non-payment of tax. Some of the common errors made while filing the returns are as under: (i) Incorrect classification of goods and services: GST rates vary depending on the classification of goods and services. It has to be ensured from the returns that the supply of goods and services are correctly classified and the tax rate applied for determining the tax payable is correct. (ii) Delayed filing of returns : The statutory GST returns should be filed on or before the due dates, failing which interest is attracted at prescribed rate and penal clauses are attracted. (iii) Failure to report input tax credit : Taxpayers are allowed to claim the input tax credit on their purchases goods (inputs) and/or services (input services), which are utilised for discharging the tax liability on supply of goods and/or services. Failure to report input tax credit correctly can result in incorrect assessment and in case of wrong availment of the input tax credit, interest at prescribed rate and besides recovery of such wrongly availed input tax credit, penalty is also attracted. (iv) Incorrect reporting of turnover: It has to be ensured that the taxpayers report their turnover correctly to avoid incorrect assessment.