Top 10 Mistakes Companies Make During GST Audit – And How to Avoid Them

Every year, hundreds of companies face notices, penalties, or demand orders due to gaps in GST compliance. Here are 10 common mistakes made during a GST audit — and how to fix or avoid them:

1. Mismatch in GSTR-1 and GSTR-3B
2. Failure to reconcile ITC with GSTR-2B
3. Incorrect HSN/SAC code reporting
4. Delayed or missed return filings
5. Non-payment or short payment of tax liabilities
6. Improper maintenance of invoices and records
7. Ineligible ITC claims (blocked credit)
8. Wrong GST rates applied to supply of goods/services
9. Ignoring reverse charge mechanism liability
10. Lack of documentary proof for input/output tax transactions

How to Avoid Them:

• Conduct monthly reconciliation using GSTR-2B
• Automate filings and validations
• Take a quarterly GST health check from a Chartered Accountant
• Use expert help to defend in GST assessments or SCNs