How to File NIL GST Return Online: Step-by-Step Guide (2025)

Table of contents:

• What Are NIL Returns in GST?
• Who Needs to File NIL GST Returns?
• When Should NIL Returns Be Filed Under GST?
• Why Is Filing NIL GST Returns Important?
• What Happens If NIL GST Returns Are Not Filed?
• Due Dates for Filing NIL GST Returns
• Difference Between GSTR-1, GSTR-3B, and NIL Returns
• How to file NIL GST Return on GST Portal
• How to File NIL GST Returns via SMS
• Conclusion

What are NIL Returns in GST?

NIL GST returns are mandatory filings for registered taxpayers who have no business activity during a tax period. This means no sales, purchases, or Input Tax Credit (ITC) claims were recorded for that period. Filing these returns is crucial to ensure compliance with GST regulations and maintain an active GST Identification Number (GSTIN). Even if a business is inactive, timely NIL return filing helps avoid penalties and ensures that the GSTIN remains valid for future operations.

In 2025, It is expected to have increase in the NIL GST return as GST council has tighten the compliance for startup and MSMEs for delayed returns

Who Needs to File NIL GST Returns?

NIL GST returns must be filed by registered taxpayers who meet the following criteria:

• No sales, purchases, or ITC claims during a tax period.
• Businesses under the GST regime but temporarily inactive.
• Taxpayers opting for the Composition Scheme without any transactions.

Even if there are no business activities, filing NIL returns shows compliance and keeps the taxpayer’s record clean.

When should NIL Returns be filed under GST?

Timeliness is critical for NIL GST returns. These should be filed for the specific tax period during which no transactions occurred. The due dates depend on the type of GST return:

• GSTR-1: Filed monthly or quarterly (for QRMP scheme taxpayers).
• GSTR-3B: Filed monthly or quarterly for summarised tax declarations.

Missing these deadlines could lead to late fees and penalties, even for NIL returns. Businesses should ensure they file within the stipulated timelines to maintain compliance.

Why Is Filing NIL GST Returns Important?

Filing NIL GST returns has several benefits:

• Avoiding Penalties: Late fees apply even for NIL returns, which can accumulate over time.
• Maintaining GSTIN Validity: Ensures the GSTIN remains active for future business activities.
• Compliance Record: Protects the taxpayer’s compliance rating and minimises the risk of scrutiny from GST authorities.

Consistent filing showcases a commitment to following government regulations and builds business credibility.

What happens if NIL GST Returns are not filed?

Failing to file NIL GST returns can have serious consequences:

• Late Fees: A penalty of ₵20 per day for NIL returns (capped at ₵500 per return).
• Loss of GSTIN: Prolonged non-compliance could result in GSTIN suspension or cancellation.
• Legal Issues: Non-filing may attract notices from the GST department, increasing legal burdens.

Regular and timely filing protects businesses from these risks.

Due Dates for Filing NIL GST Returns

Understanding GST return deadlines helps ensure timely compliance. Below is a summary:

Return Type	Filing Frequency	Due Date
GSTR-1	Monthly or Quarterly	11th of next month
GSTR-3B	Monthly or Quarterly	20th of next month

Businesses under the QRMP scheme should follow the quarterly due dates.

Difference Between GSTR-1, GSTR-3B, and NIL Returns

Understanding the distinction between these GST return types ensures accurate filing:

• GSTR-1: Details outward supplies, filed monthly or quarterly.
• GSTR-3B: Summarised tax payment details, filed monthly or quarterly.
• NIL Returns: Filed when there are no transactions for a tax period.

Each return serves a unique purpose within the GST framework, and taxpayers must adhere to the relevant requirements.

Filing NIL GST Returns via GST Portal

Filing NIL GST returns is a straightforward process, and taxpayers can choose between two methods: using the GST portal or filing via SMS. Both methods are explained in detail below to ensure accurate and timely compliance.

The GST portal provides a user-friendly interface to file NIL GST returns. Here’s a step-by-step guide:

1. Log In to the GST Portal
   • Visit the GST Portal and login using your credentials.
2. Navigate to Returns Dashboard
   • Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’.
3. Select the Tax Period
   • Choose the relevant financial year and the month or quarter for which the return is being filed.
4. Prepare the Return (GSTR-1 or GSTR-3B)
   • Under the respective tile (GSTR-1 for outward supplies or GSTR-3B for summarised returns), click on ‘Prepare Online’.
5. Indicate NIL Return
   • Answer ‘Yes’ to the question, “Do you want to file a Nil return?” This action will disable other fields for simplicity.
6. Generate Summary
   • Click on ‘Save’ and then ‘Generate Summary’ to compile the return data.
7. Preview and Submit
   • Review the details by clicking ‘Preview’. If everything is correct, click ‘Submit’.
8. File the Return
   • File the return using either ‘File with DSC’ (Digital Signature Certificate) or ‘File with EVC’ (Electronic Verification Code).
9. Acknowledgement
   • Upon successful filing, an Acknowledgement Reference Number (ARN) will be generated. Save it for your records.

Filing NIL GST Returns via SMS

Taxpayers can also file NIL returns through SMS, making it a convenient option for those without internet access. Follow these steps:

1. Initiate Filing
   • Send an SMS to 14409 in this format:
     NIL [Return Type] [GSTIN] [Tax Period]
     Example: For GSTR-1 in April 2024:
     NIL R1 09XXXXXXXXXXXXX 042024
     For GSTR-3B in April 2024:
     NIL 3B 09XXXXXXXXXXXXX 042024
2. Receive Verification Code
   • A six-digit verification code (OTP) will be sent to your registered mobile number. This code is valid for 30 minutes.
3. Confirm Filing
   • Send another SMS in this format:
     CNF [Return Type] [OTP]
     Example:
     CNF R1 123456 for GSTR-1
     CNF 3B 123456 for GSTR-3B
4. Acknowledgement
   • After successful verification, you will receive an ARN via SMS, confirming the NIL GST return filing.

Conclusion

Filing NIL GST returns is a critical compliance activity for businesses, even during periods of inactivity. It ensures adherence to GST laws, avoids penalties, and maintains GSTIN validity. Whether filing via SMS or the GST portal, the process is simple and efficient. Timely compliance safeguards business credibility and fosters smooth operations under the GST framework. By following this guide, businesses can ensure they meet their obligations seamlessly and stay ahead in compliance.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Taxpayers are advised to consult with a certified tax professional or the GST department for specific guidance related to their circumstances.