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Common GST Filing and Billing Mistakes You Can Prevent Using GST Billing Software

Akanksha Bhargava 
on 27 February 2021


A retail/wholesale business comes with various segments. Each segment has its own set of processes from product/raw material purchase to its final delivery. But what common feature is present in all is having the smooth and accurate "Billing System". 

Role of billing software in retail/wholesale business

Billing is a critical part of any business segment that may one of the primary causes of a delightful customer experience. It starts when he/she enters the store and ends with the billing experience. Usually, customers don't want to stay or wait in long billing queues. A lack of an accurate billing system would result in difficulty in have seamless control over the operations. Integration of the right Billing software for a retail/wholesale business helps in keeping clarity right from the beginning. 

Common GST Filing Errors You Can Prevent Using GST Billing Software

The reason behind the introduction of GST billing software

In any business, no business process is completed only on billing. We have to give details of our sales/purchase to the prospective government and if we come under the tax slot, then we have to file a tax return as well.  This is the whole scenario that should be done by any retailer, wholesaler, or distributor.

Earlier, many types of direct, indirect taxes were levied in India. But later on 1 July 2017, the Goods and Services Tax (GST) was announced. The introduction of GST in the Indian economy has changed the way people pay their taxes and maintain their sales and purchases. It effectively replaces all existing and past taxes, including VAT, service tax, excise, and other taxes in India, and realizes the concept of “one tax, one nation.”

This way, GST-enabled billing software came into existence. The GST billing software helps taxpayers in the GST tax and returns process. It keeps track of imports/exports, debit notes, and all business functions. In this way, the software can benefit your business in many ways and prevent businesses from any GST filing and billing mistakes.

Let's have a look into the common billing and GST filing mistake that frequently occurs in managing the business. Also, in the end, we will discuss why businesspersons should choose GST billing software to avoid common billing and GST filing mistakes.

List of Common GST Filing and Billing Mistakes

List of Common GST Filing and Billing Mistakes

Errors in manual data entry 

This is the most common mistake in billing and GST Return Filing. It is required that the businessperson must ensure the details are entered correctly & in the right format. 

This will benefit the entire system and guarantee error-free information display. 

Choosing the wrong invoice format and calculating taxes incorrectly

Sometimes business persons do not issue invoices in the specified format. This results in mistakes, such as the mention of place of supply not mentioning, wrong GST number of the buyer given in the invoice, etc.

Taxpayers need to take note of this mistake as it attracts unnecessary penalties from the concerned department.

Missed mentioning the HSN code in the invoice

As per the GST regime, all businesses whose annual turnover is more than 1.5 crore in the preceding financial year are required to mention the HSN code while strictly issuing the challan.

In many cases, business persons (registered) forget to mention the HSN code, which is against GST compliance.

Tax payment under the wrong GST heading/category

In GST, there are various tax slabs under IGST, SGST, and CGST. If you're intended to in IGST slab then you cannot intend to pay SGST and vice versa. 

It is a common mistake done by any business owner because business persons are not fully aware of the categories of taxes under GST. They fail to understand which transaction falls under which category of GST and end up paying taxes under the wrong heads. The drawback that comes with committing this mistake is to pay more tax. 

Treating zero-rated (export) supplies as nil-rated and vice-versa

In GST, all the exports come under zero-rated supplies. It doesn't mean that the tax rate on those items will be 0%. It implies that the tax paid on imports and exports shall be fully refundable.

Most of the time, businessperson are not aware of this fact and export those items under nil-rated supplies rather than zero-rated supplies. This way, taxpayers will not be able to claim a refund of the tax paid.

Thus, a careful GST Returns filing and the right product information is needed. 

No GST returns for zero sales

According to the GST provisions, all registered taxpayers must file their GSTR, even if there was no sale in the specified tax period. Sometimes taxpayers forget this or assume that they need not file returns because no sale is carried in the tax period, which unfortunately is not true. 

If no turnover comes from business in the respective tax month, you still have to file Nil returns for the month. Otherwise, the penalty is applicable.

Errors while uploading data to file GSTR

Lack of accuracy of sales/purchase reports or data, a business owner can easily do mistakes while entering such data to file GSTR. These data may include invoice date, invoice number, place of supply, rate of tax, etc. 

A taxpayer needs to be very careful as there is no provision to amend the return once it is filed.

Mismatch of monthly/quarterly filing with Annual Returns

The taxpayer must file accurate GSTR-1, GSTR-3B, & GSTR-9. The mismatch in the three reports can cause the taxpayer to receive notices.


E-Way Bill Compliance

As per the new taxation system,  the taxpayer must comply with the E-Way Bill. For this, the taxpayer must file their GSTR-1 accurately concerning the e-Way Bills & vice versa.

Non Filing of GST Return

Failure to file a GST is another important mistake. This is also because the business person considers GST as complex and tries to avoid it. But in the end, they are eligible for a penalty.

A correct GST billing software allows business owners to file GST efficiently without delay.

Why should businessmen choose GST billing software to avoid common billing and GST filing mistakes?

There are many problems with companies that require a proper system to manage them correctly. Billing is one of them. Above, we mentioned some common billing and GST filing mistakes made by most businesses. To deal with such a situation, every company should select the right GST billing software that can help them in matching returns with accuracy and one click.

GST billing software gives business owners a complete business solution. Its features are as follows-

  • Feature of multi-user multiple logins
  • Feature of GST compliant Invoices
  • Feature of bulk invoice view, reject or delete
  • Reconciliation feature 
  • Business/ customer/ supplier management
  • Invoice generation

Bottom Lines

In conclusion, the right GST billing software will help you to solve all your possible billing and GST problems. But if you require a more detailed idea of the best GST billing software, the SWIL team assists you the best possible way.

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Category GST
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Akanksha Bhargava 

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