5 Common Mistakes to Avoid When Making GST Payment

Goods and Services Tax (GST) has been a game-changer for the Indian economy since its implementation in 2017. It has simplified the indirect tax system and made it more transparent. One of the critical aspects of GST is the payment of taxes, which needs to be done on a timely basis. GST payment filing is essential because it is the basis for claiming input tax credits. It is also essential for proper compliance and avoiding any legal issues. However, there are common mistakes that individuals and businesses often make while making GST payments, which can lead to financial penalties and legal complications. Let’s look at the five common mistakes to avoid when making GST payments:

Failure to Match the Payment with the Correct GST Challan

The first and most crucial aspect of GST payment is┬áto ensure that the payment is made using the correct GST challan. The GST challan is a document that contains details such as the taxpayer’s GSTIN, the amount of tax liability, and tax payment details. A mismatch in the GST challan details can lead to non-payment or delayed payment of taxes, which can attract a penalty.

To avoid this mistake, you must verify the correct GST challan to be used and ensure that the payment details are accurate. This includes maintaining proper records of the tax invoices, verifying the GSTIN and legal name of the recipient, and checking the HSN code and tax rate applicable to the invoice.

Delay in Making GST Payments

GST payment is subject to a deadline, and any delay can attract interest and late fees. Under the law, interest is charged at a rate of 18% per annum on the outstanding tax liability from the due date of payment until the date of actual payment. Additionally, a late fee of Rs. 100 per day of delay for CGST and SGST/UTGST and Rs. 200 per day of delay for IGST is levied.

To avoid this mistake, taxpayers must ensure that they make their GST payments on time and avoid any delays. This can be achieved by setting reminders and maintaining clear records of the due dates for GST payments.

Incorrect Calculation of GST Liability

Another common mistake that taxpayers make is the incorrect calculation of GST liability. This can happen due to a lack of understanding of the GST rules and regulations, which can result in either underpayment or overpayment of taxes.

To prevent this from happening, taxpayers must take the help of tax professionals or use GST software to calculate their tax liabilities accurately. Additionally, they must maintain proper records of their invoices, returns, and payments to ensure that they are within compliance.

Ignoring GST Input Tax Credit

Input Tax Credit (ITC) is a critical aspect of GST, which allows taxpayers to claim the tax paid on inputs against their tax liability. Failure to claim the ITC can result in an increased tax liability and avoidable expenses.

To avoid this mistake, it is essential to maintain proper records of the tax invoices and returns filed. This will help taxpayers claim their ITC accurately and avoid any missed claims.\

Incorrect Details in GST Payment Filing

Finally, the incorrect details entered in the GST payment filing can lead to an incorrect allocation of the tax liability or even non-payment of taxes. This can create legal complications and even attract fines and penalties.

To avoid this mistake, taxpayers must be diligent in entering the details while making the GST payment. It is essential to verify the details of the tax invoice, the GSTIN and legal name of the recipient, and the HSN code and tax rate applicable to the invoice.


GST payment filing is a crucial aspect of GST compliance, and taxpayers must avoid making the common mistakes listed above. By ensuring that they match the payment with the correct GST challan, avoid delays in making GST payments calculate their GST liability correctly, claim their Input Tax Credit, and enter accurate details in GST payment filing, taxpayers can avoid legal issues and financial penalties.

Additionally, taxpayers must use GST software or take the help of tax professionals to help them manage their GST compliance effectively and efficiently.

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