GST known as Goods and Services Tax is important for all registered businesses to file in India. Whether you have just started your business or whether there are any sales or not, filing GST returns on time is compulsory. This includes filing a NIL GST return if there are no sales or transactions during the period.
A common question that occurs in every business owner is whether there is any penalty for not filing a NIL GST return. Therefore, to clear this doubt, in this blog, we will provide all the necessary information about the NIL GST return. Whether you own a business in Jaipur or anywhere else, it’s important to understand the implications of not filing a NIL GST return. This knowledge is crucial for managing GST returns in Jaipur effectively.
What is NIL GST Return?
NIL GST return is a return that registered taxpayers file for a specific time (monthly or quarterly). The taxpayers file this return when they have no sales (outward supplies) or purchases (inward supplies) to report. In simple words, when there are no transactions during the return period.
What is the importance of filing an NIL GST Return?
Filing a NIL GST Return is equally important as a regular GST return. It guarantees that your business stays in compliance with GST laws and keeps you out of trouble or avoids any penalties. It is mandatory that even if there are no transactions, then also you need to file your returns.
Penalties for Not Filing NIL GST Return
Yes, if you have not filed an NIL GST return for your business then it can lead to penalties, including:
- Late Fees for NIL Returns: For both GSTR-1 and GSTR-3B NIL returns, the late fee is ₹20 per day of delay. This is calculated as ₹10 for Central GST (CGST) and ₹10 for State GST (SGST) per day.
The maximum late fee is capped at ₹500 per return (i.e., ₹250 each for CGST and SGST) regardless of the number of days delayed. - Interest on Late Payments: If there is any tax liability associated with the return, an interest rate of 18% per annum is applied to the outstanding amount from the due date until the payment is made.
- Consequences of Non-Filing: Beyond financial penalties, failing to file NIL returns can lead to restrictions on filing future returns. Taxpayers may be barred from submitting any returns until the pending ones are filed and the associated late fees are paid.
- Importance of Compliance: Filing NIL returns is crucial for maintaining compliance with GST regulations. Non-compliance can lead to cumulative penalties and operational hindrances for businesses.
Taxpayers should ensure timely filing of NIL returns to avoid these penalties and maintain good standing under the GST framework.
How to File a NIL GST Return?
Filing a NIL GST return is an easy and quick process. To file a NIL GST return, specifically GSTR-3B or GSTR-1, follow these steps:
Filing NIL GSTR-3B
- Login to the GST Portal:
- Visit www.gst.gov.in and log in with your credentials.
- Navigate to Returns Dashboard:
- Click on Services > Returns > Returns Dashboard.
- Select the Financial Year and Month:
- Choose the financial year and the month for which you want to file the return from the drop-down list and click SEARCH.
- Prepare GSTR-3B:
- In the GSTR-3B tile, click on PREPARE ONLINE.
- Indicate NIL Return:
- Answer the questions presented, selecting “Yes” for “Do you want to file NIL return?” This will disable all other options.
- Preview Draft GSTR-3B:
- Click on PREVIEW DRAFT GSTR-3B to review the summary, which will show zeroes for all fields.
- File the Return:
- Select the checkbox for declaration. Choose the authorized signatory from the drop-down list.
- Click on FILE GSTR-3B WITH DSC or FILE GSTR-3B WITH EVC to proceed.
- If using EVC, enter the OTP sent to the registered email and mobile number.
- Confirmation:
- A success message will appear confirming that your GSTR-3B has been filed. You can download the filed return for your records.
Filing NIL GSTR-1
- Login to the GST Portal:
- Access www.gst.gov.in and log in.
- Navigate to Returns Dashboard:
- Go to Services > Returns > Returns Dashboard.
- Select the Financial Year and Quarter:
- Choose the relevant financial year and quarter for which you want to file the return and click SEARCH.
- Prepare GSTR-1:
- Click on PREPARE ONLINE in the GSTR-1 tile.
- Select NIL GSTR-1:
- Check the box for File Nil GSTR-1. Ensure there are no saved or auto-populated records in the form, as this will prevent filing an NIL return.
- File the Return:
- Click on FILE STATEMENT. Select the declaration checkbox and choose the authorized signatory.
- Click FILE WITH DSC or FILE WITH EVC to complete the filing.
- Confirmation:
- After successful filing, an acknowledgement reference number will be displayed. You can download the filed GSTR-1 for your records.
Hence, filing a NIL GST return is easy, but not everyone has time to file on their own or some may even feel a complex process. But there is no need to worry!
Apkireturn can help you in this process. With over 20 years of experience, our team of qualified Chartered Accountants, Company Secretaries, and Lawyers provides prompt and efficient services to meet the needs of each client.
We have earned a prestigious DPIIT Certificate of Recognition and our proven track record has made us a trusted partner for employees from more than 200 companies.
Apkireturn provides comprehensive guidance and handles the registration and filing of GST returns in Jaipur, ensuring that even NIL returns are filed accurately and on time.
Conclusion
Filing NIL GST return seems less important, but is equally important under the GST law. Free yourself from remembering when to file the return, consult, or hire a CA to ensure filing on time and avoid legal consequences.
Get consulted with one of the best CAs in Jaipur for all your tax-related issues for your business or company. Give us a call at 766 515 6000 for expert assistance.
We are a team of highly qualified Chartered Accountants and Company Secretaries with over 20 years of experience, providing prompt and efficient services tailored to meet the unique needs of our clients.
Our expertise ensures a seamless process for all your business and tax compliance needs.
