GST Return Filing: Common Mistakes to Avoid (2025 Guide)

Introduction

Filing your GST return is one of the most important compliance tasks for businesses in India. Whether you're running a large business or a small start-up, getting your GST filings right ensures you avoid penalties, legal issues, and unnecessary stress.

But here’s the thing—many businesses and individuals still make costly mistakes when filing their GST returns. This guide helps you understand what to watch out for, whether you're filing monthly, quarterly, or even submitting a nil return through SMS.

Let’s go step-by-step and uncover the most common GST return filing mistakes, how to avoid them, and answer key questions like:

• How to file GST return?
• How to file nil GST return through SMS?
• Who should file GST return and how often?

What is GST Return Filing?

A GST return is a document that contains details of your sales, purchases, tax collected on sales (output tax), and tax paid on purchases (input tax). Every registered taxpayer must file these returns based on their business type and turnover.

There are monthly, quarterly, and annual GST returns, and failure to file them on time can result in late fees and penalties.

Types of GST Returns in India

Who Should File GST Return?

• Any business registered under GST
• Businesses with annual turnover above ₹40 lakhs (₹10 lakhs in special states)
• E-commerce sellers
• Freelancers or consultants offering taxable services
• Composition scheme holders
• Even if there is no sale or purchase in a month, a nil return must be filed

How to File GST Return?

You can file GST returns through:

• The official GST portal – www.gst.gov.in
• Using a Chartered Accountant (CA) or tax consultant
• Through GST return filing software
• Or, if eligible, file nil return via SMS

How to File Nil GST Return through SMS?

To make things easier, the government allows eligible taxpayers to file Nil GSTR-3B and GSTR-1 returns via SMS.

Steps to File:

1. Send SMS in the format:

NIL Return Type GSTIN Tax Period to 14409 Example: NIL 3B 09XXXXXXXXXXXXZC 052024

2. You will receive a 6-digit verification code (OTP).

3. Send OTP in the format:

CNF Return Type Code to 14409

4. You will get a confirmation message once your return is filed successfully.

Note: Only eligible for users with zero transactions during the return period.

Common GST Return Filing Mistakes (And How to Avoid Them)

1. Missing the GST Return Filing Deadline

Mistake: Many taxpayers forget to file returns on time.

• GSTR-1 & 3B are usually due monthly or quarterly.
• Missing deadlines leads to late fees of ₹50/day (₹20 for nil returns).

Tip: Set reminders or use GST software to auto-notify you.

2. Incorrect GSTIN Entry

Mistake: Typing wrong GSTINs in invoices or returns.

Tip: Always copy-paste from a verified source or maintain a database of correct GSTINs.

. Not Reconciling with GSTR-2A/2B

__Mistake: __Failing to match purchase data with GSTR-2A or 2B.

• This can lead to denial of Input Tax Credit (ITC).

Tip: Use reconciliation tools monthly and raise mismatches with vendors promptly.

4. Claiming Ineligible Input Tax Credit

Mistake: Claiming ITC on blocked credits like food, beverages, travel.

Tip: Refer to Section 17(5) of CGST Act to check what is disallowed.

5. Wrong Tax Calculation

Mistake: Applying the wrong GST rate (5%, 12%, 18%, or 28%).

Tip: Check HSN codes and official GST rate lists for accuracy.

6. Skipping Nil Return Filing

Mistake: Businesses with no sales think they don't have to file.

Truth: Even if there’s no transaction, you must file a Nil GST return.

7. Filing Wrong Return Type

Mistake: Confusion between GSTR-1, GSTR-3B, GSTR-4, etc.

Tip: Know your business type and select the correct form. Use a CA if unsure.

8. Not Updating Contact Info on GST Portal

Mistake: OTPs for filings are missed due to outdated mobile or email.

Tip: Regularly verify your contact info in the GST portal.

9. Ignoring Notices from GST Department

Mistake: Not responding to GSTN queries, leading to penalties.

Tip: Check your registered email and GST portal dashboard weekly.

10. Incorrect Turnover Declaration

Mistake: Underreporting turnover or claiming wrong exemptions.

Tip: Match your GST returns with ITR and financial statements.

GST Return Filing Fees in India (2025)

Charges may vary depending on the complexity of returns and number of entries.

Who Can File Quarterly GST Returns?

Businesses with aggregate turnover up to ₹5 crore can opt for the QRMP scheme (Quarterly Return Monthly Payment).

• File GSTR-1 and GSTR-3B quarterly
• Pay tax monthly via PMT-06

FAQs – People Also Ask

Q1: How to file GST return online?

Visit gst.gov.in → Login → Select return type → Fill data → Upload invoices → Submit → File with DSC or OTP.

Q2: How to file nil GST return through SMS?

Send: NIL 3B 09XXXXXXXXXXXXZC 052024 to 14409

Then confirm with OTP.

Q3: Who should file GST return?

Every registered GST taxpayer must file returns—even if there’s no business in a month.

Q4: What happens if I don’t file GST return?

• Penalties up to ₹10,000
• Blocked ITC
• Suspension of GSTIN
• Legal notice from department

Q5: Can I revise a GST return after filing?

You cannot revise directly. You can amend details in subsequent returns.

Conclusion

Filing GST returns on time and accurately is crucial for your business's financial and legal health. Most errors—like wrong GSTINs, missed deadlines, or claiming the wrong ITC—can be avoided with proper care, regular reconciliation, and use of automation tools.

At PSR Compliance, we assist businesses with GST registration, filing, and error-free compliance—whether you're a small startup or a growing enterprise. If you're struggling with GST return filing or want expert help, we’re here to support you.