How to file GSTR 3b Nil Return

How to file GSTR 3b Nil Return?

Nil GSTR-3B returns are filed in the same manner as regular GSTR-3B returns. Regardless of having no outward or inward supplies, which results in no tax liability for a specific month, it is compulsory for taxpayers to file a nil GSTR-3B via the GST portal for that period.

This article provides a comprehensive overview of what is a Nil GSTR-3B, the associated late fee for GSTR 3b nil return, and the steps required to file a Nil GSTR-3B return effectively.

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Introduction to Nil Returns in GST

Under the Goods and Services Tax (GST) regime, every registered taxpayer must file a GST return, regardless of their business turnover or profitability, within a month. This requirement holds even if no transactions occurred and no invoices were issued during the month. In such cases, taxpayers must still access the GST Portal to file what is known as a Nil return. This ensures compliance with GST regulations and helps maintain accurate records of business activity—or the lack thereof—across all reporting periods.

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

As mentioned, Filing Form GSTR-3B is compulsory for all normal and casual taxpayers, even during tax periods with no business activity. During such periods, the return may be filed as NIL, provided all conditions for filing a Nil return are met.

What is Nil GSTR-3B return?

A Nil GSTR-3B return means that during the specified tax period, the taxpayer has no transactions to report regarding GST (Goods and Services Tax). This includes:

• No outward supplies (sales or services provided).
• No inward supplies (purchases) on which tax is due.
• There is no requirement to claim an input tax credit (ITC).
• No reverse charge liabilities (where the recipient is liable to pay GST instead of the supplier).

Nil return GSTR 3b  form can be conveniently filed as nil either online or offline. Additionally, taxpayers have the convenience of filing a nil GSTR-3B via SMS.

Eligibility Criteria for Filing Nil Form GSTR-3B

A Nil Form GSTR-3B can be filed for a tax period if the following conditions are met:

• There have been no outward supplies made.
• There is no reverse charge liability.
• There is no intention to claim any input tax credit.
• There are no liabilities for the specific tax period.

However, if any of the following situations apply, the GSTR-3B return for that tax period cannot be filed as nil:

A Nil GSTR-3B return cannot be filed for a tax period if any of the following conditions are met:

• Supply of Goods or Services: There were any goods or services supplied during the tax period, including nil-rated, exempt, and non-GST supplies. Additionally, if any supplies liable to reverse charge or other exempt, nil-rated, and non-GST inward supplies were received, a Nil return cannot be filed.
• Inter-state Supplies: Any inter-state supplies were made to unregistered persons, composition taxable persons, or UIN holders.
• Reversal of Input Tax Credit (ITC): There is no intent to reverse input tax credit.
• Outstanding Interests or Late Fees: There are any outstanding interests or late fees that need to be paid, including those carried forward from previous periods.
• Tax Liability from GST TRAN-1: There is no tax liability arising from Form GST TRAN-1.
• Other Liabilities: There are other liabilities that need to be settled while filing the return.

When to File Nil Form GSTR-3B?

A taxpayer is eligible to file a Nil Form GSTR-3B anytime from the 1st of the month following the period for which the return applies. For instance, a Nil GSTR 3B return for the month of April 2024 can be filed starting from May 1st, 2024.

Late fee for GSTR 3b Nil Return

 For GSTR-3B returns, here are the specific late fees applicable for both interstate and intrastate supplies when filing a nil return:

• Central GST (CGST):₹10 per day
• State GST (SGST):₹10 per day
• Total Late Fee:₹20 per day

The maximum late fee for GSTR 3b nil return is capped at ₹500 per return.

How to file GSTR 3b Nil Return?

Here is a step-by-step guide for filing a Nil GSTR-3B return:

Step 1: Log Into the GST Portal

• Navigate to the GST portal and log in using your credentials.Click on Return Dashboard.

• Once logged in, select ‘GSTR-3B’ under the returns section and click on ‘PREPARE ONLINE’.
• GSTR-3B return must be filed only for the months of July and August. Hence, select July or August from the drop down and click on continue.

Step 2: Select prepare GSTR-3B return

Click on prepare online in the section titled Monthly Return – GSTR3B.

Step 3: Opt for Nil Return Filing

• A series of questions from A to G will appear. Begin with the first question: ‘Do you want to file a Nil return?’ Selecting ‘YES’ will disable the remaining questions.
• Click ‘NEXT’ to proceed.

Step 4: Preview and Declare

• Preview the GSTR-3B form, which will display all figures as zero.

• Download the draft summary in PDF format to review.
• Confirm the accuracy of the form by ticking the declaration box that states: ‘I/We hereby solemnly affirm and declare that the information given herein is true and correct to the best of my knowledge and belief, and nothing has been concealed therefrom.’

Step 5: Authenticate

• Choose the method of filing, either DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).
• Select the Authorized Signatory from the dropdown list, which contains names entered during GST registration.
• Note: For entities such as companies or LLPs, DSC is mandatory, and the EVC option will not be available.

Step 6: Submit the Nil GSTR-3B Return

• Click ‘PROCEED’ to confirm your intent to file. A prompt will verify this decision.
• If filing with DSC, select the digital certificate from the list and click ‘Sign’.
• If filing with EVC, enter the OTP sent to the registered email or phone number and click ‘VERIFY’.

Upon successful filing, a confirmation message will be displayed, and you can download the filed return for your records.

Click here to learn more about How to File GSTR 3b?

Filing Nil GSTR-3B Returns via SMS

Filing Nil GSTR-3B returns via SMS is a convenient option for taxpayers who meet certain criteria. Here’s a detailed guide on how to file these returns through SMS, including prerequisites and step-by-step instructions.

Prerequisites for Filing Returns via SMS:

• GST Registration: You must have a valid GSTIN registered as a Normal/Casual taxpayer, SEZ unit, or SEZ developer.
• Authorized Signatory: An authorized signatory’s mobile number must be registered on the GST portal.
• Compliance Status: There should be no pending returns, outstanding liabilities, late fees, or accrued interest.
• No Recent Transactions: You should not have made any supply of goods/services (including nil-rated, exempt, and non-GST supplies) nor received any supplies that attract reverse-charge.

Steps to File Nil GSTR3b Returns Through SMS:

The procedure to file Nil GSTR3b Return via SMS is explained in detail below:

Send Initial SMS:

• From your registered mobile number, send an SMS to 14409 using the following format:
• NIL (space) 3B (space) GSTIN (space) TAX PERIOD in the mmyyyy format

 Receive Verification Code:

• After sending the initial SMS, you will receive a 6-digit verification code on your registered mobile number from the GST Network (GSTN).

Confirm Filing:

• To confirm the filing, send a follow-up SMS with the verification code 14409 using the following pattern:
• CNF (space) 3B (space) 6-DIGIT CODE

Receive Confirmation:

• Upon successful submission, you will receive a confirmation SMS and an email with the Application Reference Number (ARN). This confirms that your return has been filed successfully.

Check Filing Status:

• You can verify the status of your filing by logging into the GST Portal and navigating to Services > Returns > Track Return Status.

For more details on this alternative method, refer to our article, “Filing of NIL FORM GSTR-3B returns via SMS. 

This SMS-based filing method offers a streamlined approach for taxpayers who have had no taxable transactions in the reporting period and ensures compliance without needing to log into the GST portal.

Conclusion

Filing Nil GSTR-3B returns is an essential requirement under the GST framework, ensuring compliance even during periods of no taxable activity. Whether through the GST portal or via SMS, taxpayers must file these returns to avoid penalties and maintain accurate records. This guide has outlined the significance of Nil returns, the conditions under which they must be filed, and the simplified steps for doing so. By adhering to these guidelines, taxpayers can effortlessly fulfil their obligations and contribute to a transparent tax system.

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