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Quick Summary
15 basic mistakes that are related to Charging of GST or Reversing ineligible ITC, that Taxpayer should Avoid making 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 annual return. So here I point
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FAQ :
Common mistakes include failing to charge GST on the sale of fixed assets or cars, not charging GST on rent received for commercial property, forgetting to add GST to freight charges from suppliers, and not charging GST on commission income.
Errors related to Reverse Charge Mechanism (RCM) include not paying GST on advocate fees, security services, import of services, and transportation or freight charges, whether inward or outward.
Ineligible ITC claims that require reversal include those related to specific goods and services like FMCG, motor cars (under 13 persons), construction, goods lost or destroyed, personal expenses, or exempted goods manufactured. Reversals are also required under rules 42/43.
Taxpayers might claim ITC twice by entering purchase bills or expenses twice in their accounting system, leading to duplicate ITC claims.
Errors during reconciliation include failing to claim eligible ITC on expenses like bank charges or freight, or mistakenly showing sales returns as purchases and claiming ITC on them.
Incorrectly claiming IGST instead of CGST+SGST, or vice-versa, is a common mistake that needs to be rectified during GST filing and reconciliation.
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