Filing of GSTR-1 and GSTR-3B is compulsory for all regular and casual taxpayers, even though there is nil business activity in any specific tax period. For such a tax duration, a nil return needs to be filed. A nil GSTR does not possess any entries. It implies that a nil return can be filed when a taxpayer has not made any outward supply (including exempt, nil-ranked or non-GST supplies) or received supplies on which tax is payable.
How to File a Nil GST Return by SMS?
To simplify the process further, the government has inaugurated a new facility for filing a nil GST return through SMS. A nil return can be filed via SMS utilizing the subscribed mobile number of the taxpayer. A return filed via SMS is authenticated using the OTP facility.
Who is Eligible to Submit a Nil Return?
Any person who satisfies specific conditions is qualified to submit a NIL return:
- The Authorised signatory and their phone number must be registered on the GST portal.
- The taxpayer must be a registered person, whether regular/casual.
- All earlier returns must be filed.
- No pending liability of earlier period.
- There must be no saved data in the online form.
- It is to be noted that all the authorised representatives are permitted to submit a nil return via SMS.
Time Restriction to Submit Nil Return
A taxpayer can submit a Nil return at any time from the 1st day of the month after the tax period. For instance, GSTR-1 for April can be submitted from 1st May onwards. And if the return is being submitted quarterly, then for the quarter from April to June, it can be submitted from 1st July onwards.
What is NIL GSTR-1?
GSTR-1needs to be filed compulsorily by GST-registered Taxpayers. Even if there is no business activity during the tax period (month/quarter), GSTR-1 needs to be submitted as a no-return in GST via SMS. A GSTR-1 will be regarded as a GST Nil return by SMS if there is NO:
- Taxable external supplies or sales supplies
Steps to File Nil GSTR-3B
Taxpayers need to pursue the under-mentioned steps for filing nil GSTR-3B through SMS-
- Taxpayers need to dispatch an SMS to 14409.
- SMS is to be dispatched from the registered mobile number.
- SMS is to be dispatched in a specific format – NIL <space> 3B <space> 15-digit GSTIN <space> tax duration in MMYYYY format. Such as NIL 3B 09AQDPP827776 022024
- Following that, a validation code of 6-digit validation code from VD-GSTIND will be obtained, which would be usable for 30 minutes. If the verification code expires, then dispatch SMS once more and wait for 5 minutes for new code to be sent from the department.
- Now dispatch an SMS in specific manner-CNF <space> 3B <space> 6-digit code, such as CNF 3B 107543.
- Finally, the taxpayer will get an acceptance number confirming the filing of a nil return.
Steps to File Nil GSTR-1
- Taxpayers need to observe the same guidelines as cited above regarding GSTR-1 as well.
- But word 3B will be substituted by R1. So, the steps will be as specified-
- Taxpayers need to dispatch an SMS to 14409.
- SMS is to be dispatched in specific format – NIL <space> R1 <space> 15-digit GSTIN <space> tax period in MMYYYY format. Like – NIL R1 09AQDPP827776 022024
- Following that, a validation code of 6-digits from VD-GSTIND will be obtained, which would be valid for 30 minutes. If the verification code expires, dispatch an SMS again and wait for 5 minutes for a new code the department.
- Now dispatch an SMS in a specific manner-CNF <space> R1 <space> 6-digitcode. Such as – CNF R1 107543.
- Finally, taxpayer will receive an acknowledgement number on the same mobile number and on the registered E-mail ID, confirming filing of a nil return.
Who Can File Nil GST Returns via SMS?
You can file Nil GSTR-1 or GSTR-3B through SMS if:
- You are a regular taxpayer (not within the composition scheme).
- You don’t have any outward supplies (sales), purchases, tax liability, or ITC claims.
- You have filed earlier GST returns and are not in default.
- You do not need to pay any tax for the specified period.
- If any transactions occur during the tax period, you must submit the return through the GST website instead of via SMS.
Time Limit to File Nil Return
A taxpayer can file a Nil return anytime from the 1st day of the month after the tax period. For instance, GSTR-1 for April can be filed from 1st May onwards. And if the return is being submitted quarterly, then for the quarter from April to June, it can be submitted from 1st July onwards.
Late Fees & Penalties for Non-Filing of Nil GST Returns
Even though a business has no dealings, failing to file a Nil GST Return on time incurs late fees under the CGST and SGST laws.
1. Late Fees for Nil GSTR-1 & GSTR-3B
| Return Type | Late Fee Daily | Maximum Late Fee |
| Nil GSTR-3B | Rs 10(Rs 5 CGST + Rs 5 SGST) | Rs 500 (Rs 250 CGST + Rs 20 SGST) |
| Nil GSTR-1 | Rs 10 (Rs 5 CGST + Rs 5 SGST) | Rs 500 (Rs 250 CGST + Rs. 250 SGST) |
2. Interest on Late Payment of Tax (If Any)
- 18% per annum on the due tax liability.
- Interest is computed from the due date until the tax is paid.
Popular Mistakes to Avoid While Filing Nil GST Returns through SMS
- Employing an improper format – Ensure the correct format for SMS submission.
- Sending SMS from an unsubscribed mobile number – Only the mobile number connected to the GST portal can be utilised.
- Not corroborating with OTP – Without OTP corroboration, the return is not regarded as filed.
- Filing Nil Return when transactions are present – If there are sales or purchases, file via the GST portal instead.
How was the Nil return filing done previously?
Both Nil GSTR-3B and Nil GSTR-1 were filed online by means of the Returns dashboard after signing in to the GST portal. An assortment of questions is asked before GSTR-3B that determine what tables are to be made present for disclosing details. Filing the return is done by choosing ‘Yes’ for the question ‘Do you wish to file a Nil return?’ This process is time-consuming and comprises multiple steps.
Benefits of Filing Nil GST Returns through SMS
- Fast and trouble-free process – No requirement to log in to the GST portal.
- Avoids penalties and compliance problems – Prevents late fees and notices.
- Convenient for small businesses and startups – Perfect for companies with the fewest transactions.
- Keeps active GST registration – Avoids GSTIN suspension due to non-filing.
Wrapping Up
Businesses that have no transactions during a tax period can use the method of filing Nil GST Returns through SMS in order to save time, and it is also a very convenient method. It is a good practice for businesses to keep up with GST compliance, to be free from penalties, and to keep their registration valid. Taxpayers must also be careful with the proper SMS format, registered mobile numbers, and OTP verification for them to be able to finish the process successfully.
Related Services
