GST return filing
Gaurav Yadav

Updated on February 2nd, 2024

What is GST Return?

Hello taxpayer, we know you are looking for process of GST Nil Return, but before we start any explanation lets begin with basic detail and understand what is GST Return.

Every registered taxpayer under GST has to file return for every tax period. It may happen that during a certain period, he had no transactions i.e. no sale, no purchases or any other transaction.

In such scenario, a question arises whether he has to file GST returns for that period or not.

As per GST filing process law, every registered person is liable to file returns even if no transactions (sale, purchase, etc.) has taken place during that particular period for which the return is to be filed.

What is GST NIL Return?

From above, we can understand that NIL return is a return that is required to be filed by a registered person when he does not have any transaction for a particular month. otherwise  it lead to GST late fees or GST penalty.

In this article we will understand how to file NIL GST return.

Watch our video on NIL Return Filing

Two types of return you can file

In GST act mention in detail about GST return filing procedure.

Under the current GST system, Nil return is required to be filed for both GSTR 1 return and GSTR 3B filing


In case returns are not filed, penalty for delayed filing shall be paid by the taxpayer. So, it is important to understand the process of how to file GST nil return and its types.

GSTR-3B filing

Procedure for filing Nil GSTR-3B Return 

  1. 1
    Login into GST Portal and select the month for which GSTR-3B return filing is to be filed from Returns dashboard.
  2. 2
    After selecting GSTR 3B – prepare online, a list of questionnaire will appear.
  3. 3
    For Nil return, select Yes for question no 1 i.e. do you want to file nil return?
  4. 4
    Once you select yes, you will be directed to E-sign page where return can be filed through EVC or Digital Signing Online 
  5. 5
    File nil return using any of the options mentioned above.
NIL GSTR-1 Filing

How to file GSTR-1 Nil return

  1. 1
    Login into GST portal and select the month for which GSTR 1 is to be filed  from Returns dashboard
  2. 2
    Select prepare online for GSTR1 filing
  3. 3
    Go to section B2C (Others) under GSTR -1 Other Details and provide the required details
  4. 4
    Select Place of Supply and update zero under all other fields
  5. 5
    Click on Save and then go back to GSTR 1 Dashboard
  6. 6
    Click on Generate Summary
  7. 7
    Once the summary is generated, verify the details and click on Submit button
  8. 8
    File the return using EVC or Digital Signature Certificate option

Penalty for Late Filing of Nil Return:

Lets understand the GSTR-1 late fees and GSTR-3B late fees for GST nil return.

Earlier, penalty was payable @ INR 200 per day. However, the same was reduced through Notification issued by CBIC. Currently, in case of delayed of filing for Nil return of both GSTR 1 and late fee for GSTR 3B, late fees shall be payable @ INR 20 per day (i.e. INR 10 CGST and INR 10 SGST).

If taxpayer having tax liability for the particular tax period, then there is penalty for late filing of GSTR-1 & GSTR-3B

Conclusion:

It is mandatory for every registered taxpayer to file nil GST return even when he has no transaction for that particular period. Further, non-filing of returns will attract penalty for the taxpayer.
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Gaurav Yadav

About the author

Gaurav is an Engineer by training with a deep interest in Economics & Finance. He has been associated with the Fin-Tech industry for quite some time now. He writes for GSTHero for topics including GST Compliance, GST Structure, etc & aims to break down complicated technical jargon into simple terms for the taxpayers.

His expertise includes GST Laws, Corporate Finance & Macro-Economics.

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