GST has successfully been implemented in various countries in Asia helping entrepreneurs kick off their business with the right accounting spirit. If you are to choose GST registration, you must tie yourself to the rules you are given, for defaulting your payments and filing your documents can be disastrous for your business. Under GST laws, there are some common mistakes that people make without knowing that itcan lead for one to unregister for GST. Even though there are people who could unregister for GST for the right reasons, it is important to know what is expected of you after registration.Discussed here are just but a few that you can consider avoiding as you register your business under GST compliance.
Incorrect tax computation and invoice format
When auditing firms, experts pay attention to the format of invoice as you present them for assessment. Since not so many businesses were getting the right format, many of them suffered the consequences. Some of the aspects that had to be checked include omitting place of supply, not knowing the right GST number for the invoices issued to customers and preparing the wrong invoice among other blunders. Incorrect calculations will falsify the records submitted to the state for scrutiny and that can have dire repercussion for your business.
Failure to provide E-way bill
Did you know that for all your transactions that are above ₹ 50, 000an E-way bill must be prepared? This is a law that all GST members adhere to when dealing with hefty invoices. Not so many business people comply with the demand though as the days of giving invoices to customers are fastfading. That does not however make it right and one can easily be tracked down by the state from GSTR-1. You should strive to correct this on time before you are found and have to face the consequences of the same which could be dire depending on the gravity of your ignorance.
Notfiling GST returns
Businesses will admit today that filing GST returns can be complicated and ideally not their cup of tea. The registration process is never that complicated and it is easy to become a member however after registration is when the problems begin. Thereis a penalty for every month that you fail to file your GST returns which could be very high therefore inconveniencing your budget based on the number of months missed. The problem is people forget to check the debt that accrue due to ignorance and that is how GST defaulters end up paying a hefty fine.
Not filing annual returns
G.S.T. law demands that all people registered under it to file their annual returns for every financial year. You must do this just as soon as your financial year closes or 6 months within the given period. Failure to do this is a mistake that can have serious implications on your business like your GST number being revoked. This will interfere with your operations and that is the reason you must have the due dates with you to mitigate any room for error. There are also extensions that are added to the deadline, make sure you are aware of any such changes to act accordingly when you are needed to file your returns.