How to File Nil GST Return?

You are required to know how to file a nil GST return as it is a mandatory task for all GSTIN (GST Identification Number) holders to do so thrice a month. The number of times you are required to do this may increase even more depending upon your vertical of conducting business. The return has to be filed regardless of the amount of business you do in a month. If you fail to file your return on the due date, a fine of Rs. 100 will be levied on you until you file the next return.

Here, we go into all aspects of filing a GST return and will give you a step-by-step guide to file your returns.

Due dates for GST returns

*The Composition Scheme is a simple and straightforward GST scheme for taxpayers. Small taxpayers can avoid time-consuming GST formalities by paying GST at a fixed rate of turnover. This scheme is open to any taxpayer with a turnover of less than Rs. 1.5 crore.

**It is a compilation of all monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that calendar year. Despite its complexity, this return aids in extensive data reconciliation for completely transparent disclosures.

All taxpayers have to file GSTR-1, GSTR-2, and GSTR-3 on the 10th, 15th, and 20th of each month. Even in the absence of any business transaction or activity during any given month, you have to file at least a nil GST return by logging into the GST portal, to avoid a penalty. Repeated failures to do so may also cause the cancellation of your GST registration. Filing tax returns is an integral part of any business, and it is wholly dependent on solid financial accounting. OkCredit is a financial accounting service that helps you to focus on your growth, while it handles all your monetary woes.

Filing GSTR-1 return

A nil GSTR-1 return has to be regardless of any business activity that might not have happened during the month. Failure to do so will incur a penalty of Rs. 100 every day until the next filing date. In the GSTR-1 return, the business or taxpayer provides any required information about the transactions in the previous month and uploads all the issued invoices on the GSTN portal. Even if there are nil transactions, the taxpayers are required to mention that there were nil sales. The taxpayer must file the nil returns on the GST portal after logging in, submit a statement indicating that no transactions occurred, e-sign, and then submit a GSTR-1 return.

Filing GSTR-2 return

On the GSTR-2 return, most information is auto-populated, based on the information entered in the GSTR-1 return filed earlier in the month. So, if you filed a nil return the last time, it will auto-populate the new return as a nil return too. You must verify all details, e-sign, and submit a GSTR-2 return.

Filing GSTR-3 return

Since the GSTR-3 return is auto-populated, based upon the previously filed returns, all you have to do is to verify all details, clear payable taxes, if any, and e-sign to submit the GSTR-3 return.

Detailed Procedure for Filing Nil GSTR-3B Return

A nil GSTR-3B return can be filed directly through the GST portal in a few minutes. So, to avoid the penalty, anyone with a GST registration should file a nil return on or before the due date.

• Use the GST portal to access your GST account. Return to the dashboard button.
• Only July and August require the submission of a GSTR-3B return. As a result, select July or August from the drop-down menu and press ‘continue’.
• In the section titled ‘Monthly Return – GSTR-3B’, click on ‘Prepare Online’.
• Save the GSTR-3B return summary if all fields are nil. To save your progress, you can save the GSTR-3B returns multiple times during the preparation time.
• After you have entered the required information and saved the GSTR-3B return, click on ‘Preview’ and submit GSTR-3B.
• Following the submission of the GSTR-3B return, a window will appear requesting final confirmation. Click the confirm and submit button to file the GSTR-3B return. Once the submit button is pressed, the taxpayer will be unable to change any of the information entered.
• The portal prompts the user to check the ‘Agree’ box after submitting the GSTR-3B return. The user must also digitally sign the GSTR-3B return to complete the nil GST return filing.

Filing Nil Return Through SMS

To begin the filing process, send an SMS to 14409 from your registered mobile number. The Nil Form GSTR-3B may be filed via SMS by an authorised representative for a specific GSTIN number. However, the registered mobile number of such a representative cannot be shared with other authorised representatives for the same GSTIN.

The message should be as stated below:

NIL<space>3B<space>GSTIN number<space>Tax period in MMYYYY

Example: NIL 3B 08XXXXXXXXXXXZX 082021

VD GSTIND will then send the user a 6-digit validation code with a 30-minute validity period. Confirm the NIL filing with another SMS:

CNF<space>3B<Space>Code

Example: CNF 3B 123456

An ARN code should be included in a receipt message. The ARN code can be used to track the status of the return at www.gst.gov.in by going to Services > Returns > Track Return.

Users can get assistance by texting HELP 3B to 14409.

Conclusion

It is necessary to possess knowledge on how to file a nil GST return as every registered person who has a GSTIN must file a return at the due date every month. Otherwise, the person will have to levy a penalty of Rs. 100/day until he/she files the return. So, start filing your GST return here.

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FAQs

Q. When can I file nil GST returns?

Ans. The nil GST return is to be filed on the same due date as any other well-populated return. But the number of transactions and the payable tax will be nil.

Q. What if I don't file any GST returns for over six months?

Ans. GSTIN suspension and subsequent cancellation via Section 29(2) for registration will be initiated after six months of the due date. If a regular taxpayer fails to file a return for six months in a row, the GST officer has the authority to cancel that individual's GST registration.

Q. Can the late filing penalty be listed as an expense?

Ans. As it is not a fee paid as compensation for something illegal or prohibited, but as a deterrent to ensure compliance with the GST Act, it can be listed as an income tax deduction.