Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
Recovery of Shares
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
GST return is to be filed irrespective of whether a transaction has been made or not. In a month, when there is no business activity or transaction, the taxpayer needs to file Nil GST Return.
If a taxpayer fails to file NIL GST Return, then a penalty of Rs. 100 per day will be applied until completing the filing on the taxpayer. Thus, all the taxpayers, whether a business is transacted or not, need to file NIL GST Return within a specified time prescribed.
In this article, we speak about Nil GST and how its return is filed.
All the taxpayers must file GST Return even if there is no business transaction or business activity during a month. When there is no business activity, the taxpayer needs to file Nil GST Return.
Return
Due Date
Persons required to file
GSTR – 1
10th of every month
All Registered Persons
GSTR – 2
15th of every month
GSTR – 3
20th of every month
GSTR – 4
18th of April, July, October & January
Persons registered under Composition Scheme
GSTR – 5
20th of every month & within 7 days after expiry of registration
Non-Resident Taxable Persons
GSTR – 6
13th of every month
Input Service Distributors
GSTR – 7
Authorities Deducting Tax at Source
GSTR – 8
E – commerce Operators
GSTR – 9
31st December of next FY
Registered Persons
GSTR – 10
Within 3 months of cancellation of GST registration
Registered Persons with surrendered or cancelled GST Registration
The types of Nil GST Return are:
The types of Nil GST returns are explained in detail.
Nil GSTR – 1
Nil GSTR – 1 must be filed by all the taxpayers registered under GST irrespective of whether there is a sale transaction or not in a month. If the individual fails to file GSTR – 1 return, a penalty of Rs. 100 per day will apply.
Procedure to file Nil GSTR – 1 Return
The steps to file Nil GSTR – 1 Return are:
A person can file a return using either a DSC or EVM.
Nil GSTR – 2
Nil GSTR – 2 must be filed by all the taxpayers having GST registration irrespective of whether there is a business transaction or not in a month. Failing which, a penalty of Rs. 100 per day will apply.
Most of the information while filing Nil GSTR – 2 return is automatically taken up because of the details entered in Nil GSTR – 1 Return.
Therefore, when there is no business transaction, the Form of GSTR – 2 will show it. The taxpayer then can verify Form GSTR – 2 and sign it digitally and submit a Nil GSTR – 2 Return easily.
Nil GSTR – 3B
When a taxpayer has not made or received any supply, it results in zero tax liability for a particular month. GSTR 3B is filed only for July & August by all the taxpayers in case of no business transactions.
Procedure to file Nil GSTR – 3B Return
The steps to file Nil GSTR – 3B Return are:
A person can sign the return using either a DSC or EVM.
To ease the process of filing GST Returns, the government has introduced the filing of Nil GST through SMS, without logging into the GST Portal. Since June 8 2020, GSTR 3B facility was operational, and for GSTR 1, the facility was available from the 1st week of July 2020.
Steps to file Nil GSTR 3B
The steps to file Nil GSTR 3B are:
Steps to file Nil GSTR 1
The steps to file Nil GSTR 1 are:
As per the notification issued by CBIC[1], the penalty for late filing of Nil GST return has been reduced to Rs. 20 per day for both GSTR 1 and GSTR 3B. Earlier, the penalty was Rs. 200 per day.
All taxpayers must file Nil GST Return if they have neither made any business transaction nor any outward or inward supply of goods & services. Thus, resulting in zero tax liability, then he needs to file Nil GST Return.
Read our article:Consequences of non-filing of GST returns
Experiencing the loss of a loved one is one of the deepest emotional hardships a person can fac...
On January 16, 2025, the Reserve Bank of India (RBI) released the list of Non-Banking Financial...
Over the decades, the Oil and Natural Gas Corporation (ONGC) has been a key pillar in the portf...
The Reserve Bank of India, on April 11, 2025, posted a Press Release No. 2025-2026/96 on their...
Hong Kong is widely recognized as a leading global business hub, known for its free-market econ...
Are you human?: 3 + 3 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Prior to the GST regime, the VAT system existed, which allowed revision of the returns in case any error was identi...
25 Feb, 2022
GST Return is a document that contains details of income/sales and/or expenses which has to be filed by the taxpaye...
20 Sep, 2021