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How to File Nil GST Return

how to file nil gst return

What is nil GSTR?

If you have not made outward supply (normally known as selling) and have NOT secured any inward supply (usually known as purchasing) of all goods and services for a specific tax duration, ‘Nil’ return can be submitted by you for a particular tax duration, and have no tax liability for that particular fiscal period. If we don’t file nil GST return then we will have to pay GST late fees or GST penalty. Now the question arises, how to file nil GSTR return? We will explain it below.

How to file nil GSTR return

Nil returns are expected to be submitted for both GSTR 1 and GSTR 3B under the new GST scheme. The applicant shall pay the charge on a late filing if returns are not submitted. It is also necessary to know how to file GSTR1 nil return and GSTR3B nil return.

  • Procedure for filing NIL GSTR-3B return
  1. Login to GST Portal and pick from the dashboard Returns a month for which GSTR 3B will be filed.
  2. A collection of questions is given after selecting GSTR 3B – prepare online.
  3. Select Yes for Question No 1 for Zero return, i.e. do you want to file the return nil?
  4. When you pick yes, you are going to the E-sign page where you can file the return using EVC and DSC.
  5. File nil return using any of the above options.
  • Procedure for filing NIL GSTR-1 return
  1. Log in and pick from the Returns dashboard for the month for which GSTR 1 is to be placed.
  2. Choose online GSTR-1 preparation.
  3. Go to GSTR –1 Segment B2C (Others) and provide the necessary information.
  4. Choose Supply Place and upgrade zero in all other fields.
  5. Click Save to return to GSTR 1 Dashboard.
  6. Click Summary Generation.
  7. Once the description is provided, check the details and press Send.
  8. File the return with the alternative of EVC or DSC.

Each day on which a GST Registered Business fails to provide GST Returns on the stipulated due date will be assessed a stipulated delay fee. The late charge is payable in cash and the taxpayer cannot utilize an input tax credit (ITC) available for payment of the late charge in the electronic credit ledger. For the delay in submitting NIL returns, the late fee must also apply. For example, a late charge must be paid even if there are no sales or purchases to disclose in GSTR-3B and there is no GST responsibility. In cases where the late fee is assessed, interest also applies if late fees are not paid. Interest at the rate of 18% per annum is imposed for the total liability for the penalty. The taxpayer shall pay this interest at the moment that the fees are paid. Both fees and interest are computed for the period from which the return is due to the date of actual filing. Recently, there have been the following temporary reductions for late fees:

  • Intra-State: Late charges are reduced by INR 25 per day under CGST for intra-State supplies and INR 25 under SGST per day. Therefore, instead of INR 200, a late fee of INR 50 is paid every day.
  • Inter-state: As with the intra-state laws, CGST, as well as SGST, have decreased the late fines for inter-state goods to INR 25 per day. A late INR 50 fee each day is thus charged.
  • NIL return: CGST decreased the amount of NIL return late filing to 10 INR each day, and SGST decreased the value likewise to 10 INR. A total of INR 20 per day is therefore charged for failure to produce NIL returns on time. The late charges were also decreased under IGST to INR 20 per day.

For each kind of GST return, late costs were lowered.

How to file GST nil return using mobile

The Government has launched SMS Services to facilitate the process of submitting GST Returns, whereby NIL GST returns may be completed without entering into the GST portal. Steps on how to file nil returns in GST are explained below.

Steps to file NIL GSTR3B are as follows:-

  • To commence a Nil filing, send an SMS in NIL<space>3B<space>GSTIN<space>Tax period from registered Mobile Number to 14409. Eg: NIL 3B 09xxxxxxxxxxxx1C 062020 (for monthly return of June 2020).
  • Then a taxpayer receives up to 30 minutes of a six-digit validity code.
  • Now a provider must confirm the submission of his Nil statement by sending CNF<space>3B<space>CODE to 14409. Eg: CNF 3B 789123
  • The return will be completed and taxpayers will receive a receipt number through SMS if the code verification is acceptable.

Steps to file NIL GSTR1 are as follows:-

  • To commence the submission of a NilGSTR1, send SMS to 14409 as NIL<space>R1<space>GSTIN<space>Tax period from the listed mobile number.
  • For Example 09xxxxxxxxxxx 042020 NIL R1 (for quarterly return of April-June 2020).
  • A 6 digit code will be received on the phone within half an hour.
  • Now, by submitting CNF<space>1>R1<space>CODE to 14409, a user must approve the Nil submission. For example CNF R1 123456.
  • The return will be submitted after the code has been successfully validated and taxpayers shall get a Check-Number via SMS.

FAQs related to nil GSTR1, nil GSTR2, nil GSTR3, and nil GSTR3B

Q. For a certain return period, I have stored my data/summary on the GST Portal. Can I use SMS to file the Nil Form GSTR-1?

Ans. For the tax period, you stored data/summary on the GST Portal, you can’t file Nil Form GSTR-1 through SMS. You must either file GSTR-1 via online mode on your GST Portal or erase the data from the Portal and afterwards submit a Nil form GSTR-1 through SMS when you have some stored data on your GST Portal.

Q. The Tax Officer has reset my authorized signatures. Can I submit a GSTR-1 Nil form by SMS?

Ans. If the tax officer has reset your authorized signatories, you first need to renew your user id on GST Portal by user ID > Log in > Link here. You can submit Nil Form GSTR-1 through SMS after restarting your user ID.

Q. When will I file GSTR-3B for Nil Form?

Ans. At any point on or after the first day of the next month, a taxpayer may file Nil Form GSTR-3B. For instance, NIL returns may only be submitted on or after 1 May 2020 for April 2020.

Q. If I do not have an input/supplies transaction in the month, how can I file Nil Return for GSTR-2?

Ans. If there is no supply for the month, take action merely on auto-details if there are any and file GSTR-2.

Q. Who is not required to file NIL GST3 return?

Ans. Yes, distributors of input service (ISD) as well as compounding individual and tax deducted at source (TDS) deductors must not submit a nil GSTR 3 file.

Q. I submitted a GSTR-1 Nil Form through SMS. Do I need to file again for the Nil Form from the GSTR-1 GST portal? 

Ans. You do not need to go to the GST Portal to file Nil Form GSTR-1 after you have submitted Nil Form GSTR-1 by SMS. The form GSTR-1 status is converted to GST Portal file after the successful filing of Nil Form GSTR-1 by SMS.

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