How to file Nil Return under GST using GSTR3B & GSTR1

Tally Solutions |Updated on: July 27, 2022

Introduction to nil return in GST
Why the necessity to file nil return under GST arises?
GSTR3B filing: for taxpayers filing nil return GST
GSTR1 filing: for taxpayers filing nil return in GST

Introduction to Nil Return in GST

GST return has to be filed by every registered person under GST irrespective of business turnover or profitability in a month. Hence, even if there were no invoices issued during a month, the taxpayer must log in to the GST Portal and submit a NIL return.

If NIL return is not filed, a penalty of Rs.200 per day is applicable until the filing is complete. Hence, all taxpayer having GST registration must submit NIL GST return before the deadline.

However, the late fee for taxpayers having nil returns is amended to 20 Rs per day (10 Rs CGST + 10 RS SGST ) from October 2017 onwards.

Why the Necessity to File Nil Return under GST Arises?

The necessity to file nil return GST arise when a registered dealer in GST has not turned out any outward taxable supplies during the month for which the return is to be prepared.

In returns like GSTR-3B & GSTR-1, there are numerous details to be filled by a registered taxpayer with regards to his tax liability and Outward supplies. But a person with zero sales need not have to fill those many details on the GSTN Network which a normal taxpayer would file with respect to his returns.

GSTR3B Filing: For Taxpayers Filing Nil Return GST

Step No. 1

Step No. 2

Go to services tab and click on Returns Dashboard

Step No. 3

Select the month for which the return is to be filed

Step No. 4

Select the tile “Monthly Return GSTR3B” and click on Prepare Online

Step No.5

Please answer the following questions to enable us to show relevant sections:

A. Do you want to file Nil return? [Note: Nil return can be filed by you if you have not made any outward supply (commonly known as sale) AND have NOT received (commonly known as purchase) any goods/services and do not have any tax liability.]

B. Have you made any supply of goods/services (including nil rated supply under GST, exempt and Non- GST supplies) or received any supplies liable to reverse charge during this tax period? (Table 3.1)

C. Have you made any inter-state supplies to unregistered persons, composition taxable persons or UIN holders? (Table 3.2)

D. Do you have any claim/reversal of Input tax credit (ITC) on purchase of goods or receipt of services? (Table 4)

E. Have you received any nil rated, exempt or non-GST supplies during this tax period? (Table 5)

F. Do you have any interest or late fee (including carry forward late-fee) liability? (Table 5.1)

G. Do you have any tax liability due to GST TRAN-1? (System-populated) (Table 6)

Step No.6

A Dialogue box will appear as follows:

I/We hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.

Tick the box and verify the return with EVC Option or DSC Option

Step No.7

Your GSTR-3B Nil return is filed after verification of the same.

GSTR1 Filing: For Taxpayers Filing Nil Return in GST

Step No. 1

Step No. 2

Go to services tab and click on Returns Dashboard

Step No. 3

Select the month for which the return is to be filed

Step No. 4

Click on prepare online under GSTR1 Tile

Step No. 5

Enter details of Aggregate Turnover for Financial Year 2016-17 (i.e. for the period 1st April 2016 to 31st March 2017). Also Aggregate Turnover for the period 1st April 2017 to 30th June 2017 has to be provided.

Step No. 6

Since we are filing the Nil return the other tiles of GSTR1 Return have to be left alone with no figures to be fed in. And Now Click on Generate GSTR1 Summary tile placed at the end of the return.

Step No. 7

After a while preview, the return to be filed by you and then click on the SUBMIT button on the right end corner of the return A Dialogue box will appear as follows

I/We hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.

Tick the box and verify the return with EVC Option or DSC Option

Step No.8

Your GSTR1 Nil return is filed after verification of the same.