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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?

 

 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 led to GST late fees or GST penalty.

 

Two types of return you can file

 

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

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.

 

What is the GSTR-3B?

 

GSTR-3B refers to a self-declaration form to be filed by taxpayers for providing detail of outward supplies, tax paid, input tax credit claimed, and tax liability ascertained.

All registered taxpayer under GST has to file GSTR-3B form. Prior to the submission of this form, the taxpayers must reconcile sales and input tax credit details via GSTR-1 and GSTR-2B. GST reconciliation is vital to pinpoint errors in data that may lead to GST notifications in future and even suspension of the registration. 

 

Who can file Nil Form GSTR-3B?

 

Nil Form GSTR-3B for a tax period can be filed, if you:

  • Have NOT made any Outward Supply and

  • Do NOT have any reverse charge liability

  • Do NOT intend to take any Input tax credit and

  • Do NOT have any Liability for that particular Tax Period.

 

For example, if your answer to any of below questions is in affirmative, your GSTR-3B return for a particular tax period will not be a nil return:

1. Have you made any supply of goods/services (including nil rated, exempt and non-GST supplies) or received any supplies liable to reverse charge or exempt, nil rated and non-GST inward supplies during this tax period?

2. Have you made any inter-state supplies to unregistered persons, composition taxable persons or UIN holders?

3. Do you intend to reverse Input Tax Credit (ITC)?

4. Do you have any interest or late fee (including carry forward late-fee) liability to be paid?

5. Do you have any tax liability, due to Form GST TRAN-1?

6. Any other liability which is liable to be paid by you, while filing your return?

 

Is filing of Form GSTR-3B as Nil return mandatory?

 

Filing of Form GSTR-3B is mandatory for all normal and casual taxpayers, even if there is no business activity in any particular tax period. So, for such tax period(s), the return can be filed as NIL (if all conditions for filing Nil return is satisfied).

 

 

By when can I file Nil Form GSTR-3B?

 

A taxpayer may file Nil Form GSTR-3B, anytime on or after the 1st of the subsequent month for which the return is being filed for.

For example, for the month of April 2020, nil return can be filed only on or after 1st May 2020.

 

 

Procedure for filing Nil GSTR-3B Return 

  1. Login into GST Portal and select the month for which GSTR 3B is to be filed from Returns dashboard.

  2. After selecting GSTR 3B – prepare online, a list of questionnaire will appear.

  3. For Nil return, select Yes for question no 1 i.e., do you want to file nil return?

  4. Once you select yes, you will be directed to E-sign page where return can be filed through EVC or DSC

  5. File nil return using any of the options mentioned above.

 

 

Another method to file NIL form GSTR 3B by sending an SMS

How do I file Nil GSTR-3B returns through SMS?

GSTR 3B is a monthly return to be filed by all GST registered tax payers irrespective of whether there is a liability or not. In order to ensure the tax payers are GST compliant, and to ease the process for those with nil liability, the government now allows them to file return through SMS.

This would mean, tax payers (Normal/Casual tax payers, SEZ units and SEZ developers) no longer have to log into their GST portal but just file their nil returns through SMS.

 

Prerequisites for filing returns through SMS:

  • A valid GSTIN that is registered as a Normal/Casual tax payer, SEZ unit or SEZ developer.

  • An authorised signatory and mobile number registered on the GST portal.

  • There should be no pending returns, liabilities, late fees or interest.

  • Should not have made any supply of goods/services (including nil rated, exempt and non-GST supplies) or received any supply that attracts reverse-charge.

 

To file nil returns through SMS:

  • Send an SMS from your GST registered mobile number to 14409 in the following pattern:
    NIL (space) 3B (space) GSTIN (space) TAX PERIOD in the mmyyyy format

Example: NIL 3B 33XXTNXXXXXZD 052020

  • You will receive a 6-digit verification code from GSTN to your registered mobile number.

  • Confirm your action by sending the verification code to 14409 as follows:
    CNF (space) 3B (space) 6-DIGIT CODE

Example: CNF 3B 123456

You will then receive a success message via SMS and an email with the Application Reference Number (ARN) indicating that your return is filed. You can also view your filing status in the portal by going to the GST Portal > Services > Returns > Track Return.

 

What is the GSTR-1?

 

GSTR-1 is a return to be provided for sharing details related to outward supplies of goods &services made. It consolidates the debit-credit notes & invoices raised on during sales transactions for a tax period. All taxpayers registered under GST must file GSTR-1. Even the minor changes made to sale invoices should be reported in the GSTR-1 return by registered sellers and suppliers. 

 

NIL Return in GSTR 1

GSTR 1 is a monthly return of outward supplies if a person has entered into a transaction of supply of goods, then there must be someone who would be the recipient of the supply of goods. Essentially, it is a return showing all the sales transactions of a business. All regular taxpayers having GST registration are required to file NIL GSTR1 return even if there was no business activity during a month. A NIL GSTR1 return can be easily filed online within a short span of time. But most of the taxpayers who have to file NIL return are confused with its process.

 

The Necessity of Filing NIL Return Under GSTR1

 

Filing income tax returns under GSTR 1 is mandatory for those business owners whose total income is more than Rs.2,50,000. It is also recommended that you have to file your income tax return, even though it is not mandatory if total income isn’t over Rs.2,50,000. This helps to make the Tax department updated regarding your monthly or quarterly Income. The taxpayers having GST registration are mandatorily required to file nil returns under GSTR 1 even though there is no activity made in the business. If nil GST return is not filed, then the taxpayer would liable for paying a penalty of Rs.100 per day until the default continues.

 

How to file GSTR-1 Nil return

 

  1. Login into GST portal and select the month for which GSTR 1 is to be filed  from Returns dashboard

  2. Select prepare online for GSTR-1

  3. Go to section B2C (Others) under GSTR -1 Other Details and provide the required details

  4. Select Place of Supply and update zero under all other fields

  5. Click on Save and then go back to GSTR 1 Dashboard

  6. Click on Generate Summary

  7. Once the summary is generated, verify the details and click on Submit button

  8. File the return using EVC or DSC option

 

Pre-Requisites to File Nil GSTR-1 Via SMS

 

  • The Taxpayer needs to be registered under GST as a Normal Taxpayer/ Casual Taxpayer/ SEZ Unit / SEZ Developer.

  • The Taxpayer should have a valid GSTIN.

  • The Taxpayer should have opted for the filing frequency as either ‘monthly’ or ‘quarterly’.

  • Authorised signatory/s and his/her mobile number needs to be registered on the GST portal for the relevant GSTIN.

  • GSTR-1 should not be saved/filed on the GST portal for the relevant period.

Note: NIL form GSTR-1 can be filed anytime on or after the 1st of the subsequent month for which the return is to be filed. For example, GSTR-1 for June 2020, can be filed anytime from 1 July 2020.

 

 

How To File Nil GSTR-1 Via SMS?

 

Step 1: Send SMS.

The Taxpayer needs to send an SMS from the registered mobile number to ‘14409’. He/she will receive a 6-digit verification code (on the same number) which will be valid only for 30 minutes.

The department has specified the content which needs to be sent in the SMS.

Message text:  NIL <space> Return Type <space> GSTIN <space> Return Period

Here, the return type will be ‘R1’ and the return period should be in MMYYYY format. In case the Taxpayer has opted for quarterly filing, the last month of the relevant quarter will be mentioned in the SMS text.

Example:

For monthly filers (July): NIL R1 XXXXXXXXXXXZX 072020

For quarterly filers(April-June): NIL R1 XXXXXXXXXXXZX 062020

Step 2: Confirm code.

The Taxpayer will have to confirm the code received by sending another SMS to ‘14409’.

Message text: CNF <space> Return Type <space> Verification Code

Example:

If the verification code received is 123456, then the SMS text will be: CNF R1 123456.

Step 3: Receive ARN.

The GST Portal will confirm the verification code in the back end and if validated, issue an Application Reference Number (ARN) for the Nil GSTR-1 filed. This ARN will be shared with the Taxpayer on the same registered mobile number and the registered email address to intimate the successful filing of Nil Form GSTR-1.

When can Form GSTR-1 be filed as Nil?

 

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.

 

Who can file Nil Form GSTR-1?

 

Nil Form GSTR-1 for a tax period can be filed, 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

  • No Amendments is to be made to any of the supplies declared in an earlier return

  • No Credit or Debit Notes is to be declared / amended

  • No details of advances received for services is to be declared or adjusted

 

Is filing of Form GSTR-1 as Nil return mandatory?

 

Filings of Form GSTR-1 is mandatory for all normal (including SEZ Unit & SEZ developer) and casual taxpayers, even if there is no business activity in any particular tax period. So, for such tax period(s), the return can be filed as NIL (if all conditions for filing Nil return are satisfied).

 

From when can I file Nil Form GSTR-1 for a tax period?

 

A taxpayer can file Nil Form GSTR-1, anytime from 1st of the month subsequent of the tax period onwards. For example, Form GSTR-1 for the calendar month of April, can be filed from 1st May onwards. Form GSTR-1 for the quarter of April to June can be filed from 1st July onwards.

 

Penalty Regarding Late Filing of GST Nil Return

Previously, the penalty was payable at the rate of Rs 200/day. But the same was minimized via notice released by the Central Board of Direct Taxes. At present, in case of late filing of GST Nil return, the late fees will be payable at the rate of Rs 20/day (i.e., Rs 10 SST & Rs 10 CGST).

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DISCLAIMER- These materials are public information and have been prepared solely for educational purposes. These materials reflect only the personal views of the author and are not individual legal advice.

It is understood that each case is fact specific and that the appropriate solution in any case will vary. Finally, the owner will not be accountable for any loses injuries or damages from the exposures or usage of this

information.

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