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How to File Nil GST Return?

Navdisha Sehgal

| Updated: Apr 15, 2021 | Category: GST Returns

Nil GST Return

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.

Why is Nil GST needed to be 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.

GST Returns due date in India

Return

Due Date

Persons required to file

GSTR – 1

10th of every month

All Registered Persons

GSTR – 2

15th of every month

All Registered Persons

GSTR – 3

20th of every month

All Registered Persons

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

10th of every month

Authorities Deducting Tax at Source

GSTR – 8

10th of every month

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

What are the types of Nil GST Return?

The types of Nil GST Return are:

  • Nil GSTR – 1
  • Nil GSTR – 2
  • Nil GSTR – 3B

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:

  • Go to the GST portal and log in using the credentials.
  • Select returns dashboard from the drop down menu in services.
  • Select the month and year of filing.
  • Select prepare online tab for GSTR -1 & then click on generate a summary for GSTR -1.
  • Select the checkbox and click on preview.
  • Then submit it.

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:

  • Go to the GST portal and log in using the credentials.
  • Select returns dashboard from the drop down menu in services.
  • Select the month and year of filing.
  • Select prepare online tab for GSTR -3B & then click on generate a summary for GSTR -3B.
  • Select the checkbox and click on preview.
  • Then submit it.

A person can sign the return using either a DSC or EVM.

How to file Nil GST Return via SMS?

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:

  • From the registered mobile number of the taxpayer, send an SMS to 14409 as, NIL <space>3B<space>GSTIN<SPACE>Tax period.
  • A six-digit code will come to the registered mobile number and will be valid for 30 minutes.
  • The taxpayer needs to confirm the NIL statement by sending an SMS as CNF<space>3B<space>CODE to 14409.
  • The return will be filed after successful validation of the code, and the taxpayer will receive an acknowledgment number via SMS.

Steps to file Nil GSTR 1

The steps to file Nil GSTR 1 are:

  • From the registered mobile number of the taxpayer, send an SMS to 14409 as, NIL <space>1<space>GSTIN<SPACE>Tax period.
  • A six-digit code will come to the registered mobile number and will be valid for 30 minutes.
  • The taxpayer needs to confirm the NIL statement by sending an SMS as CNF<space>1<space>CODE to 14409.
  • The return will be filed after successful validation of the code and the taxpayer will receive an acknowledgment number via SMS.

What is the penalty of late filing of Nil GST Return?

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.

Conclusion

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

Navdisha Sehgal

Completed BA LLB from JEMTEC, School of Law, Greater Noida (Affiliated to GGSIP University, New Delhi). I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.

Business Plan Consultant


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