How to File a Nil GST Return? (2023)

Nil GST return can be filed when there are no outward supplies during the month or quarter, for which the return is filed for. This form serves as the main purpose to claim an input tax credit on their returns. The GST law requires every taxpayer to file a return for the period even with no transactions

Under GST, every taxpayer is bound to file a tax return for every tax period. Furthermore, GSTR-1 is a monthly return that taxpayers must pay. However, taxpayers have a common query about whether they are required to file nil GST return for a period when there have been no transactions..

Let’s explore more about nil GST returns.

What is Nil GST Return?

Businesses report their outgoing supplies via the GSTR-1 filed every month. Despite having no commercial activity in the month, regular taxpayers with GST registration must file a Nil GST return. Simply put, it’s a return that reports all sales transactions of businesses. The GSTR-1 Nil return can be filed quickly online, taking only a few minutes to complete.

Moreover, the primary purpose of nil GST return filing is to inform the Income Tax Return department that you didn’t pay your taxes because you didn’t meet the criteria for taxable income. Businesses file nil GST returns or GSTR-1 when there have been no sales transactions in the given month.

Taxpayers, if they meet the following conditions, must file GSTR-1:

  • The taxpayer is registered as a casual or normal taxpayer, a Special Economic Zone developer/unit (SEZ Unit), or an SEZ Developer and has a valid GSTIN.
  • The taxpayer must have selected the frequency of filing nil GST returns, monthly or quarterly, on the GST portal.

NIL GST Return: Two Types of Returns You can File

Under the current GST system, taxpayers must file nil GST returns for both GSTR-1 and GSTR-3B. Failing to file the return, taxpayers will have to pay the penalty.

GSTR-3B

It is a self-declaration form filed by taxpayers for providing details on outward supplies, tax paid, how much input tax credit they have received, and the amount of tax liability ascertained. Furthermore, all taxpayers registered under GST are required to file GSTR-3B. However, before taxpayers file this form, they must reconcile their input tax credit and sales details through GSTR-1 and GSTR-2B. It’s vital for eliminating errors and preventing the suspension of registration in the future.

GSTR-1

Taxpayers file GSTR-1 to provide details on outward supplies of goods and services. During a tax period, it consolidates the debit-credit notes and invoices you have raised during sales transactions. All GST-registered taxpayers must file the GSTR-1. Registered sellers and suppliers should report minor changes to sale invoices in their GSTR-1 returns.

Also Read: GST Rates in India [2022]: Understanding the Latest GST Rates

Why is it Important to File a GSTR-1 NIL Return?

Business owners with an annual income of over Rs. 2,50,000 must file a GSTR-1 income tax return. However, business owners who earn less than Rs. 2,50,000 in a year are also advised to file income tax returns. It helps the income tax department to keep up with your business’s monthly or quarterly income.

The taxpayer is required to file nil returns under GSTR 1 even if there is no business activity in the business. If GST returns are not filed on time, a penalty of Rs.100 per day will be charged.

A nil GST return is primarily filed as proof of income for the Income Tax department. Furthermore, it’s possible for taxpayers to get a refund with GSTR-1 NIL returns filing.

How to File a GSTR-1 Nil Return?

Any taxpayer registered under GST is required to complete nil GST return filing. It includes those who have not earned income through sales transactions in a month or quarter. Furthermore, the GSTR-1 report contains information on advanced received, credits and debit notes issued, modified advance amounts, and summarized documents. The process of filing a NIL return under GSTR-1 is explained below:

  • Step 1: Go to the registration portal for GST and log in to your account with valid credentials. On the dashboard page, click on ‘Return Dashboard.’
  • Step 2: Once you have clicked on ‘Return Dashboard,’ a screen will appear. You can choose ‘Prepare Online’ after mentioning the filing period.
  • Step 3: You will receive a summary of the GSTR-1 return once you have clicked on ‘Prepare Online.’ You should make sure that all fields of the GSTR-1 return are marked either nil or zero.
  • Step 4: After validating all facts and information you have entered, check the box indicating the same and click on ‘Submit.’
  • Step 5: Click on the ‘Proceed’ button to accept the GSTR-1 filing in the confirmation window. Once you have hit the continue button, you cannot make any changes to the information you have entered. Thus, you should ensure the validity of the GSTR-1.
  • Step 6: You must use EVC verification or a digital signature of class 2 for digitally signing the GSTR-1 after submitting the final return for completing the GSTR-1 nil return filing process.

Why is it Necessity to File a Nil Return under GST?

The necessity to file a nil return under GST arises when a registered person or business has not turned out taxable income via outward supplies in a given month against which the nil GST return is filed. Furthermore, taxpayers must enter numerous details in GSTR-3B and GSTR-1 returns. However, a person with no sales does not need to fill out the same number of details as a normal taxpayer on the GSTN Network.

Procedure for Filing Nil GSTR-3B Return

Here’s the online method of filing nil GSTR-3B return:

Step 1: Go to the GST portal

Step 2: Select a valid month for which you are filing a GSTR-3B return from the return dashboard.

Step 3: You will get a prompt on your window with a list of questions related to GSTR-3B.

(Video) How to File GSTR1 Nill Return Monthly and Quarterly | how to file nil return in GST | Nill Filing

Step 4: Select the option ‘yes’ for the first question – Do You Want to File Nil Return?

Step 5: The GST portal will direct you to the e-Sign window, where you can file the return through EVC or DSC.

Step 6: You are good to file the nil return with the above-mentioned process.

GSTR-1 Filing For Taxpayers

Here’s the web-based method for filing GSTR-1 for taxpayers:

Step 1: Visit the GST portal

Step 2: Select the valid financial year and month and click on search on the return dashboard.

Step 3: Click on ‘Prepare Online’ from the list of options on your screen.

Step 4: Under GSTR -1, select B2C (Others) and fill out the necessary details.

Step 5: Select zero under all fields once you have opted for the place of supply.

Step 6: Revert to the GSTR-1 Dashboard once you have clicked on the save button.

Step 7: Click on the ‘Generate Summary’ option.

Step 8: Verify your GST return summary details and click on the ‘Submit’ button.

Step 9: File the nil GST return via EVC or DSC option.

Penalty for Late Filing of GSTR-1 Nil Return

Earlier, taxpayers were required to pay the penalty for the late filing of nil GST return at the rate of Rs.200 per day. However, the penalty amount was reduced by a notice released by the Central Board of Direct Taxes. Currently, taxpayers are required to pay Rs.20 per day as nil GST return late fees.

Also Read: What Is GST HSN Code And How To Find HSN Code?

Final Word

Even though filing a GSTR-1 nil return may seem irrelevant at times, it should be filed without delay in order to avoid penalties. As far as post-filing benefits are concerned, maintaining a consistent track record of filing nil GST returns is a good idea. If a taxpayer has a good track record of filing returns, including nil GST return, he or she may qualify for easy loans, lower taxes, and easier business operations. Taxpayers who file their returns seamlessly indicate their trustworthiness.

FAQs on Nil GSTR Return

Q1. Can you file a nil GST return by SMS?

(Video) How to file NIL GSTR-1 & GSTR-3B monthly Return || घर बैठे खुद से GST नंबर का NIL return file करें|

Ans: Yes, you can file nil GST return by SMS. You can send an SMS to 14409 number to file Nil Form GSTR-1. Once the message is received, the GST Portal proceeds with the process after checking for validations. Send a second SMS with the verification code to the same number. The GST Portal will send you the ARN on the registered email ID and mobile number of the taxpayer to inform you about the successful nil GST return filing.

Q2. What is EVC in GST?

Ans: An EVC is an alphanumeric ten-digit code that is used by users to authenticate themselves. The GST portal allows a user to validate their identity with a one-time password. A password will be sent to the registered phone number of the taxpayer, and the authorized signatory can proceed with the process using the password.

Q3. What is DSC on the GST portal?

Ans: Digital Signature Certificate (DSC) is a secured way of digitally signing the documents on the GST portal. DSCs are issued by specified authorities who receive recommendations from the Ministry of Corporation Affairs. DSCs of Class 2 and 3 are the only ones accepted on the GST portal. Upon logging into the GST portal, the user must first register their DSC to validate they have a DSC.

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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.

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(Video) Nil GST Return kaise bhare....How to file nil gst return

FAQs

Is it compulsory to file nil GST return? ›

Nil GSTR-1 return must be filed by all registered taxpayers compulsorily when there are no sales or supplies during the month or quarter.

How do I file an nil return for an individual? ›

Filing a nil ITR does not require a special request. The procedure is the same as filing a regular ITR. You can file a nil ITR online through e-filing. Before you begin, keep the following details ready - PAN, Aadhaar, Bank Account and Salary details, Form 16 and Investment details (if any).

What happens if I dont file nil return? ›

According to the Tax Procedures Act, failure to file returns and late filings attract KRA penalties. You pay 5% of the tax due or Kshs. 2,000 (whichever is higher) if you fail to file NIL returns for unemployed students. The same applies to individuals who are employed.

How do I file my Nill return for the first time? ›

  1. Requirements Needed To File KRA Nil Returns For The First Time.
  2. Step 1: Visit iTax Portal.
  3. Step 2: Enter KRA PIN Number.
  4. Step 3: Enter KRA Password and Solve Arithmetic Question (Security Stamp)
  5. Step 4: iTax Account Dashboard.
  6. Step 5: Click On The Returns Menu Tab Followed By File KRA Nil Return.
24 Oct 2022

How many times is the nil GST return acceptable? ›

If the taxpayer fails to file GSTR-1 return, a penalty of Rs. 100 per day shall apply. How many times is the NIL GST Return acceptable? There is no such provision for the limitation of filing a NIL GST Registration.

Is there penalty for nil return GST? ›

In case of Nil GST Return filing the maximum penalty on late filing will be INR 500 (250 CGST + 250 SGST). If the preceding financial year's annual turnover was less than INR1. 5 crore, a late fee of up to INR 2,000 per report can be levied (INR 1000 each for CGST and SGST).

Should I file GST if no sales? ›

Yes, nil GSTR-1 return must be filed by all regular taxpayers having GST registration even if there were no sales transaction in a month. If the taxpayer fails to file GSTR-1 return, a penalty of Rs. 100 per day shall apply.

Can we skip GST? ›

It is mandatory for every registered taxpayer to file GST Return. Taxpayers with no business transactions should file Nil Return within the due date. Consequences for not filing a NIL Return: Late Fee of Rs.

What are the rules for NIL? ›

NIL rules in all states allow players to sign agents who will help secure endorsements, appearances, and the like. And they'll take their cut like they do for other clients. Players can also sign with lawyers and tax experts to help with their finances and contracts.

Can I file NIL returns now? ›

Yes. You are required to file a nil return by 30th June every year if you did not earn any taxable income within the year.

Can I file nil returns using my phone? ›

Worry no more. This is because you can now file your returns by using even your mobile phone. Filing your Kenya Revenue Authority, KRA, nil returns has now been made very very easy. This is because KRA has developed a mobile phone Application that enables you file the returns in the shortest time possible.

Why should you file nil return? ›

Authentic Proof of Your Income

A NIL ITR serves as the legal document giving all the necessary details of your financial status. Besides, it is considered solid proof of income and is accepted by each and every financial institution.

Who is eligible to file nil returns? ›

Where one did not accrue any income, then the law allows the taxpayer to file a nil return. The Kenya Revenue Authority (KRA) reported that out of the over nine million formally registered taxpayers, only 3.5 million filed their 2018 returns.

How do I file a nil 2022 return? ›

How to file NIL returns on KRA's M-Service:
  1. Register if you are a first-time user.
  2. On the home menu, select tax returns.
  3. Select NIL returns.
  4. Select individual tax returns.
  5. Enter the filing period as 2022.
  6. Click proceed.
  7. The app will prompt you, click proceed.
  8. Click OK.

Is there a max for nil? ›

In terms of licensing, the annual NIL value for a student-athlete could generally range from about $1,000 to $10,000, although there are exceptions where athletes could earn substantially more.

Can I claim GST after 2 years? ›

The time limit for claiming the refund is 2 years from the date of payment.

Should I file GST if my turnover is less than 20 lakhs? ›

A business whose aggregate turnover in a financial year exceeds Rs. 20 lakhs (or Rs. 40 lakh for a supplier of goods) has to mandatorily register under Goods and Services Tax.

Is Gstr 3B compulsory for nil return? ›

A normal taxpayer is required to file Form GSTR-3B returns for every tax period.

What if GST return not filed for 1 year? ›

If you don't file any GST return then subsequent returns cannot be filed. For example, if GSTR-2 return of August is not filed then the next return GSTR-3 and subsequent returns of September cannot be filed. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty (see below).

What if GST return not filed for 3 years? ›

The concerned officer of GST may cancel the GST registration of the taxpayer, upon failing to file monthly returns continuously for six months. The GST officer can cancel the GST registration of a composition taxable person if the taxpayer fails to file the GST returns continuously for three consecutive tax periods.

Can I do small business without GST? ›

Yes, all small businesses register for GST, as it is mandatory for them to do so under the GST Act. You must definitely consider getting a GST for small business if you are a goods manufacturer with an annual turnover of over Rs. 40 Lakhs.

Can I run a shop without GST? ›

However, any business whose turnover exceeds Rs 40 lakh in a financial year is required to register under GST.

How much can a CA charge to file monthly GST returns? ›

GST Filing Fees by CA Firm / Consultants
S. No.ParticularsFees ( Monthly )
1Small Business ( B2C Sales )Rs. 500 – Rs. 1000/-
2MSME Business / E CommerceRs. 1000 – Rs. 3000/-
3Exports of ServicesRs. 1000 – Rs. 3000/-
4Manufacturing UnitsRs. 2000 – Rs. 5000/-
30 Oct 2019

Can I register GST if turnover is less than 75000? ›

You need to register within 21 days of your GST turnover exceeding the relevant threshold. You must register for GST: when your business or enterprise has a GST turnover (gross income from all businesses minus GST) of $75,000 or more – see Working out your GST turnover.

What happens if I forget to file GST? ›

Late filing penalties for goods and services tax (GST)

A $250 penalty is given for late filing on hybrid or invoice basis. These penalties are commonly due on the 28th day of the month after the return was due. However, where the late filing penalty would normally be due on: 28 December, it's due on 15 January.

What is the penalty for not registered under GST? ›

Penalty for not registering under GST

All the businesses required to register under GST mandatorily will have to pay a penalty of 10% of the tax amount payable up to a maximum of INR 10,000.

Who has the highest NIL deal? ›

Bryce Young

Young has a total valuation of $3.2 million in NIL deals. Bryce Young saw his value rise in 2022 after winning the coveted Heisman Trophy the previous season.

Why is NIL a good thing? ›

With NIL, players now have the option to continue their education and earn money, and many have chosen to do so. The full numbers are unclear at this stage, but the examples are many. For those that champion education, this is a major positive.

How do I file nil return via SMS? ›

Step 1: The user must send a text message or SMS to 14409 on the registered mobile number by typing 'NIL(space)R1(space)GSTIN(space)Tax period in MMYYYY' to first activate the SMS facility. Examples for sending this SMS are given below: Monthly GSTR-1 for April 2020 must type 'NIL R1 09AGBPS5577MSZC 042020'

Who can file nil GST return through SMS? ›

Any Authorized Signatory/ Representative with unique mobile number registered on the GST Portal, can file Nil Form GSTR-1 through SMS.

How will NIL be taxed? ›

They explained that all services performed for NIL work is taxable and must be reported on Form 1040. Student-athletes with NIL income less than the standard deduction won't have a federal tax liability. However, liability is affected by whether the player can be claimed as a dependent and receives financial support.

How do I file a nil GST return on 2022? ›

Procedure for Filing NIL GSTR1 Return
  1. Step 1: Login to your GST Account. Go to the GST Login page and log in to your GST account. ...
  2. Step 2: Begin preparing GSTR1 Return. ...
  3. Step 3: Verify auto-populated GSTR1 return. ...
  4. Step 4: Submit GSTR1 Return. ...
  5. Step 5: Accept the GSTR1 Filing. ...
  6. Step 6: Digitally sign the GSTR1 Filing.

How do I file nil return in GST by SMS? ›

Step 1: The user must send a text message or SMS to 14409 on the registered mobile number by typing 'NIL(space)R1(space)GSTIN(space)Tax period in MMYYYY' to first activate the SMS facility. Examples for sending this SMS are given below: Monthly GSTR-1 for April 2020 must type 'NIL R1 09AGBPS5577MSZC 042020'

How do I file nil return in Canada? ›

Report a nil remittance using TeleReply. TeleReply is an automated telephone service for reporting nil remittances. To use it, call 1-800-959-2256. If you use TeleReply, you do not need to send a paper remittance voucher, and you will receive an immediate confirmation.

Can we file nil Gstr-1 return? ›

Form GSTR-1 can be filed as a nil return if there are no outward supplies (including supplies on which tax is to be charged on reverse charge basis, zero rated supplies and deemed exports) during the month or quarter, for which the return is being filed for .

Is Gstr-3B compulsory for nil return? ›

A normal taxpayer is required to file Form GSTR-3B returns for every tax period.

Is there any late fee for nil return in GST? ›

In case of nil GSTR-1 and GSTR-3B filing, the maximum late fee charged shall be capped at Rs. 500 per return (i.e Rs. 250 each for CGST & SGST).

How do I file nil GST return by mobile? ›

Note: Taxpayers are required to compose a new text message to 14409. After successful validation of “Verification Code", GST Portal will send back ARN to same mobile number and on registered e-mail ID of the taxpayer to intimate successful Nil filing of Form GSTR-3B .

How much does it cost to file an nil return? ›

If you want to hire a professional account company, such as Taxory, preparing and filing a nil corporate tax return would cost you $300 per one return.

Can I file nil returns now? ›

Yes. You are required to file a nil return by 30th June every year if you did not earn any taxable income within the year.

What happens if you file wrong Gstr-1? ›

Any mistake made in the return can be rectified in the GSTR-1 filed for the next period (month/quarter). It means that if a mistake is made in GSTR-1 of January 2022, rectification for the same can be made in the GSTR-1 of February 2022 or subsequent months.

Is there any penalty for Gstr-1? ›

Under the GST law, the late fee towards not furnishing GSTR-1 will be Rs 200 per day for late filing (Rs 100 as per the CGST Act and Rs. 100 as per SGST Act). The late fee imposed will be from the date post to the last date.

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