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Top 5 GST Mistakes New Entrepreneurs Make and How Online Digital India Fixes Them

shakti kumar

Introduction

Starting a new business is exciting, but it also comes with many legal and tax responsibilities. One of the most common tasks every new entrepreneur in India must handle is GST (Goods and Services Tax) registration and filing. It sounds simple at first, but many new business owners end up making costly mistakes. Don’t worry—we’ve got your back. In this article, we’ll  explain the top 5 GST mistakes most new entrepreneurs make, and how Online Digital India, powered by eDigital, helps you avoid or fix them—without stress, without delays, and without penalties.

What Is GST?

Let’s first review the basics of GST before getting into the errors. A single tax known as GST took the place of several others, including excise duty, service tax, and VAT. If you’re selling goods or providing services in India and your annual turnover crosses a certain limit (₹10 lakh to ₹40 lakh depending on state and type of business), you must register for GST.

Once registered, you need to:

  • Charge GST on invoices

  • File monthly or quarterly returns

  • Pay the collected tax to the government

Sounds easy? Not really. And that’s where the mistakes begin.

Mistake 1: Delaying GST Registration

The Problem:

  • Many new entrepreneurs wait too long before registering for GST. They think it’s only needed after the business becomes “big”. But if your turnover crosses the mandatory limit or if you sell online (like on Amazon or Flipkart), you are legally required to register immediately.
  • Late registration = Heavy fines + missed business opportunities.

How Online Digital India Fixes It:

At Online Digital India, we offer fast-track GST registration. Whether you’re a freelancer, trader, service provider, or startup, we:

  • Check your eligibility

  • Prepare and upload your documents

  • Get your GSTIN issued in 3–5 working days

Make sure you Stay out of trouble You won’t ever again miss the deadline thanks to our knowledgeable assistance.

Mistake 2: Choosing the Wrong GST Type

The Problem:

There are different GST schemes—Regular and Composition. Many entrepreneurs register under the wrong scheme.

Example:

  • Service providers choosing the composition scheme (which they aren’t eligible for)

  • Small traders opting for the regular scheme and filing complex returns unnecessarily

  • This can lead to notice from GST department, wrong filings, or overpayment of tax.

How Online Digital India Fixes It:

We analyze your business model—products, services, location, customer base—and guide you to the right GST scheme.

  • For small shops or restaurants, we may suggest the Composition Scheme
  • For service-based startups or inter-state sales, we guide you toward the Regular Scheme
  • Our goal? Help you save tax, stay compliant, and avoid future legal trouble.

Mistake 3: Improper Invoice Format and Missing GST Details

The Problem:

New businesses often use simple or handwritten invoices. But a valid GST invoice must contain:

  • GSTIN of seller and buyer
  • Invoice number & date
  • HSN/SAC code
  • GST rate and tax breakup
  • Total taxable amount

Without this, your buyer may refuse to pay GST, and you may lose Input Tax Credit (ITC).

How Online Digital India Fixes It:

We provide ready-to-use invoice formats for your type of business (retail, e-commerce, services, etc.). We help you:

  • Generate GST-compliant invoices in Excel or software
  • Add HSN/SAC codes correctly
  • Automatically calculate CGST, SGST, or IGST
  • Customize invoices with your logo and branding

Result? Legal compliance plus a polished appearance and no mistakes.

Mistake 4: Missing GST Return Deadlines

The Problem:

GST requires monthly or quarterly filing depending on your scheme. Many startups miss the deadlines due to workload or forgetfulness. This leads to:

  • Late fees of ₹50–₹200 per day
  • Interest on unpaid GST
  • Blocking of e-way bills
  • Even cancellation of GSTIN!

How Online Digital India Fixes It:

We offer reminder-based GST return filing services powered by eDigital. Our services include:

  • Timely WhatsApp/email reminders
  • Monthly/quarterly GST return filing (GSTR-1, GSTR-3B, CMP-08 etc.)
  • Filing Nil returns if no business was done
  • Error correction before final submission
  • We also help you revise past returns if mistakes were made earlier.

With us, you focus on business—we handle compliance.

Mistake 5: Absence of Input Tax Credit (ITC) Claims or Abuse

The Problem:

You can lower your tax obligation by claiming the Input Tax Credit (ITC), which is a reimbursement for GST paid on your purchases. But new entrepreneurs often:

  • Don’t claim ITC at all
  • Claim it on ineligible items (like food or personal expenses)
  • Don’t match ITC with GSTR-2A/2B
  • This leads to loss of money or even penalties during audit.

How Online Digital India Fixes It:

We help you maximize your GST savings the legal way:

  • Track all purchases and identify eligible ITC
  • Match purchase records with supplier data in GSTR-2A/2B
  • Guide you on how to claim it properly
  • Avoid ITC mismatches that trigger notices
  • We ensure your business pays only the right amount of GST—not a rupee more.

Why Choose Online Digital India for GST Services?

Here’s what sets us apart from the rest:

  • Speedy Registration: Get your GST registration done in just 3–5 days, completely hassle-free.

  • Affordable Pricing: We offer budget-friendly packages suitable for all types of businesses.

  • Expert Consultation: Get guidance from our GST experts via phone or WhatsApp anytime.

  • GST Invoicing Help: Access free GST invoice formats and invoicing tools for easy billing.

  • Timely Filing & Reminders: We ensure you never miss a GST return deadline.

  • Compliance & Audit Support: Stay worry-free with our 100% legal and audit-ready services.

Real Stories: How We Helped Entrepreneurs Fix Their GST Issues

Case 1: Bakery Owner in Jamshedpur

Rohit, a home baker, didn’t know he had to register for GST once his online orders crossed ₹20 lakhs/year. He received a notice from GST department.

We registered his business, filed the pending returns, and handled the response to the notice—all within a week.

Case 2: Freelancer Paid Extra GST

Neha, a freelance designer, was paying full GST but not claiming input tax credit on her laptop and software expenses.

Our team helped her revise old returns and get back ₹12,000 in ITC refund.

Case 3: Missed Filing Returns for 3 Months

A small garment shop in Jharkhand missed 3 return filings and got their e-way bill access blocked.

We cleared the backlog, filed all pending returns, and restored their GST access within 2 days.

Documents You Need for GST Registration

For your convenience, here are the basic documents we’ll need to register your business under GST:

  • PAN Card of business owner

  • Aadhaar Card

  • Proof of business address (electricity bill or rent agreement)

  • Bank account details

  • Passport size photo

We help you collect, scan, upload, and submit everything—digitally.

Note: You can also get your GST registration through the Online Digital India

Conclusion

Starting a business is challenging enough—don’t let GST mistakes bring you down.

With Online Digital India, powered by eDigital, you get:

Trusted GST experts

Zero penalty guarantee

Affordable and fast services

100% online process

Support in Hindi or English

So, whether you’re a small shop owner, online seller, service provider, or startup—we’re here to simplify GST for you.