GST Compliance: Common Pitfalls to Avoid

GST compliance is critical for any registered business in India. Errors can lead to notices, penalties, and blocked input tax credits.

1. Incorrect HSN Codes

Using the wrong HSN code means charging the wrong tax rate. This can lead to heavy fines. NammaBill comes with a built-in search for correct HSN codes.

2. Mismatched Invoices

The details in your GSTR-1 (sales) must match what your supplier files in their GSTR-1 (your purchases). Regular reconciliation is key to claiming full Input Tax Credit (ITC).

3. Late Filing

Filing returns after the due date attracts late fees and interest. Set reminders or better yet, automate the report generation so filing takes just a few minutes.

4. Ignoring E-Invoicing

For businesses above a certain turnover, E-Invoicing is mandatory. Ensure your billing software is capable of generating IRNs (Invoice Reference Numbers) if this applies to you.

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