Often a lot of businesses and individuals are not aware about the proper procedure of how to file for their taxes and deal with GST. Which eventually leads to making mistakes that cost them money in the form of fine, late fee or penalty. Some of these mistakes are simple, which can be resolved quite easily if paid proper attention. If it is too complex for you or you do not have adequate time to deal with it, you always have an option to consider a GST constant in Hyderabad.
Read More : Concept of Pure Agents after GST Implementation
In this article, we discuss the common mistakes that almost everyone makes, and how to avoid them with solutions. Though these might be common and basic mistakes, you should avoid getting penalized from the government in any case.
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Personal Information
When dealing with official or government business, always provide the correct personal information. Things such as full name, mobile number, and email address should not have typos or mistakes. Providing correct contact information is essential since it allows you to get alerts from the income tax department.
If you have the wrong information, someone else might be getting all your details and alerts. To check if you have the right information, visit the GST portal, and make the necessary changes if required.
Nil Return
A lot of taxpayers believe that if they do not have anything to file or disclose in the current tax period, they do not need to do anything with GST. But that is not the case. If you forget to file a nil return in such a case, you will have to deal with facing penalties for either failure or delay.
It is necessary to file for Nil return even when you do not have any taxes to declare for that tax period. This will also help you file returns for the next month as you have already declared Nil returns for the current month. And it is easier than ever to file for Nil returns now, you can use SMS service from GST portal.
Declaring GST Number
It is important for a taxpayer to display or mention their GSTIN number on the name of the business since it is a legal requirement. If someone is purchasing services or products from you, they should be aware that you are entitled to collect tax from them.
If you miss out on displaying the GSTIN number, you risk the chance of being penalized.
GST Returns
This is one of the most common mistakes several businesses tend to repeat. Since it is easy to get GST registration, a lot of businesses register themselves. But then they forget to file for GST returns and become a defaulter from the following month of their registration. Forgetting to file for a GST return can be devastating as the fine keeps growing and by the time they realize, it is too much to pay and get out of.
Late Filing
If you do not file GST returns on time, you will get a penalty for non-compliance from the government. Once you fall into the category, the government will place a penalty amount known as late fees. The bad thing about this fine is that it comes with interest on the GST amount. If you have filed for your GST returns for some time, this can end up becoming a huge amount, which can disbalance your whole budget.
Closing
GST is an important tax that should never be taken lightly. If it has become harder for you to keep tabs on everything, it is probably best that you invest in taxation services in Hyderabad.
