GST Return Filing Mistakes in 2025: Avoid These 7 Common Errors
New GST Rules and Common Filing Mistakes to Watch in 2025
GST Return Filing Mistakes in 2025: Starting July 2025, the Goods and Services Tax Network (GSTN) in India will enforce strict rules, blocking GST return filings older than three years and making GSTR-3B forms non-editable. These changes aim to streamline compliance but increase the risk of errors for businesses.
Many small businesses and taxpayers make mistakes while filing GST returns, leading to penalties, rejected Input Tax Credit (ITC) claims, or even legal issues.
Below we provide New GST Rules and Common Filing Mistakes and avoiding these errors is crucial for seamless GST compliance in 2025. These seven common GST return filing mistakes and how to avoid them, based on recent updates and trusted sources.
Missing the Three-Year Filing Deadline
From July 2025, GST returns like GSTR-1, GSTR-3B, GSTR-4, GSTR-5, GSTR-6, GSTR-7, GSTR-8, and GSTR-9 cannot be filed after three years from their due date. For instance, if you failed to submit your GSTR-3B for July 2022, which was due on August 20, 2022, you are required to file it by August 20, 2025, or you will forfeit the opportunity permanently.
This rule, introduced under the Finance Act 2023, affects all taxpayers and aims to reduce compliance backlogs. Failing to file pending returns before the deadline can lead to lost ITC and hefty penalties. Businesses must reconcile old data now to avoid issues.
Errors in GSTR-3B Due to Non-Editable Forms
From August 2025, GSTR-3B forms will be auto-populated based on GSTR-1, GSTR-1A, and IFF data, and these values will be non-editable. Mistakes in invoice details, GSTINs, tax amounts, or ITC claims in GSTR-1 must be corrected using GSTR-1A before filing GSTR-3B. If errors go unnoticed, they can disrupt ITC claims and cause compliance issues.
Companies need to verify all entries in GSTR-1 for correctness prior to submission. This update, applicable for the July 2025 tax period, requires additional caution to prevent expensive errors.
Incorrect Invoice Details and GSTINs
One of the most common GST filing errors is entering wrong invoice numbers or GSTINs. Incorrect details can lead to mismatched data, rejected ITC claims, or penalties. For instance, a single typo in a GSTIN can cause the entire transaction to be flagged by the GST portal.
Before submitting returns, businesses must verify all invoice details, including numbers, dates, and GSTINs, to ensure they match supplier records. This step is critical to maintaining a clean GST compliance record.
Failing to File NIL Returns
Many small businesses assume they don’t need to file GST returns if they have no transactions. However, even businesses with zero sales or purchases must file NIL returns to stay compliant.
Missing NIL returns can lower your GST compliance rating and attract penalties. Setting up a tax calendar or digital reminders can help businesses file NIL returns on time, ensuring uninterrupted operations and a strong compliance profile.
Errors in HSN Summary Reporting
Technical issues in HSN (Harmonized System of Nomenclature) summary reporting, especially in GSTR-1’s Table 12 and Table 13, have caused problems for taxpayers in 2025. For nil-rated supplies, some businesses face errors when the GST portal rejects submissions due to missing quantities or values.
A temporary fix suggested by experts is to enter a nominal quantity and taxable value of ₹1 with a zero GST rate. This issue, reported in May 2025, highlights the need to stay updated on portal glitches and follow GSTN advisories.
Mismatching GST and ITR Data
For GST-registered businesses filing Income Tax Returns (ITR) like ITR-4, income details must align with GST returns. Mismatches between GST filings and ITR can trigger notices from the Income Tax Department.
For example, if your GST returns show higher sales than your ITR, it raises red flags. Taxpayers must ensure their GST records match their ITR disclosures to avoid scrutiny. This is especially important for 2025, with the ITR filing deadline extended to September 15.
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Ignoring GST Portal Advisories
The GSTN regularly issues advisories to guide taxpayers, such as Advisory 612 in June 2025, which clarified the three-year filing ban. Ignoring these updates can lead to missed deadlines or incorrect filings.
For instance, taxpayers unaware of the July 2025 deadline for pending returns risk losing ITC. Businesses must regularly check the GST portal for advisories and track return statuses using tools like the Application Reference Number (ARN) to stay compliant.
By avoiding these seven common GST return filing mistakes in 2025, businesses can ensure smooth compliance, avoid penalties, and maintain a strong GST profile.
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