Common GST Errors – Part 2 जीएसटी की आम गलतियां – भाग 2

(Errors relating to Taxability)

In case of an item of supply that was exempt before GST Act  but taxable under GST regime, the assesse might continue to treat the same as exempt resulting in erroneous exemption.

If goods/ service are absolutely exempt, but assesse opts to pay GST on the same for the purpose of claiming ITC, such ITC availment could be denied as there was absolute exemption from payment of

GST.

Example could be charging GST on electricity in order to avoid reversal of common ITC under rule 42 and rule 43.

If assesse claims

• any exemption or
• opts to pay GST at concessional rate (without fulfilling the necessary conditions attached),

 it might result in short-payment of GST.

For example, claiming ITC when opting to pay 5% GST on renting of motor vehicle.

Non-availment of eligible ITC on exports of exempted goods / Non GST Goods on the assumption that ITC is not eligible on the same.

For example, not claiming ITC when assesse is involved in 100% export of liquor.

Claiming benefit of exports without payment of tax without executing letter of undertaking or bond.

Considering all foreign currency receipts as exports/zero-rated supplies as per GST without paying attention to other conditions to be specified.

For example, treating a foreign currency receipt from a branch as export of service.

Wrong payment of GST under RCM (Reverse Charge) for services, which does not fall under notified services, provided under u/s 9(3).

For example, paying GST on courier services equating them with GTA services

Non discharge of GST on items specified in Schedule I of CGST Act.

For instance, non-payment of GST in case of principal-agent transactions.

GST not discharged on advance received towards taxable supply of service.

Mis-classification of advances as deposits, thereby resulting in non-payment of GST on advances

GST liability on goods not received from job worker within the prescribed time, as specified in section 143.

GST liability not remitted on waste or scrap generated during job work