18/05/2026
🚨 Most GST notices don't come from major fraud. They come from 5 small mistakes the GSTN system flags automatically.
We see these every single week at BSD. Here's what to fix this month 👇
❌ MISTAKE 1: GSTR-1 vs GSTR-3B mismatch
The system compares your outward supplies in both returns. Even a ₹5,000 difference triggers a flag. Always reconcile before filing GSTR-3B.
❌ MISTAKE 2: ITC claimed but invoice not in GSTR-2B
If your supplier hasn't filed their GSTR-1, you can't claim that ITC. Many businesses claim anyway and pay it back with 24% interest later.
❌ MISTAKE 3: Late e-invoice generation
For businesses with turnover above ₹5 Cr, e-invoice must be generated within 30 days of invoice date. Miss this and the invoice itself becomes invalid for ITC.
❌ MISTAKE 4: Wrong place of supply
Inter-state vs intra-state classification errors. CGST+SGST charged when IGST should have been (or vice versa). Refunds get rejected, ITC gets reversed.
❌ MISTAKE 5: RCM oversight
Reverse charge on legal services, GTA, import of services — most SMEs miss these. The notice arrives 2-3 years later with interest and penalty.
The pattern: none of these are deliberate. They're recurring monthly process gaps.
We run a monthly GST health check for our clients that catches all five before the GSTN does. If you'd like the BSD GST checklist, drop "GST" in comments.
