A GSTR-3B, When a registered GST taxpayer has no outgoing supplies, inward purchases, input tax credit (ITC), or tax liabilities for any given period of time, a nil return is filed. GST Nil return submission is essential, even in the absence of economic activity, in an attempt to avoid the late cost and fines.
With the launch of online GST return filing, it is now convenient for businesses to file their Nil GSTR-3B Return via the GST portal or mobile apps.
The blog provides a step-by-step guide on how to file Nil GSTR-3B return as per GST norms.
About GSTR-3B Nil Return
Goods and Services Tax mandates that all registered taxpayers have to file their GSTR-3B returns monthly or quarterly, irrespective of whether they have made any transactions in the tax period. When no sales, purchases, or tax payments have been made, a taxpayer has to file a GSTR-3B Nil Return if they are not adhering to GST rules. Not filing may attract late fees and penalties, even if the tax is zero.
The GSTR-3B return is a self-assessed summary return covering outward and inward supplies, tax dues, and input tax credit claims. A taxpayer with nil transactions is required to file a Nil return attesting no business activity was conducted in the tax period. Failure to file a Nil return in due time could result in penalty and a disruption of GST compliance.
The procedure for submission of Nil GSTR-3B return is easy and swift through the GST portal (www.gst.gov.in).
Who is Required to File a GSTR-3B Nil Return?
A taxpayer is required to file a Nil GSTR-3B return if-
- There are no outward supplies (sales) or inward supplies (purchases) in the tax period.
- No tax liability, input tax credit (ITC) claims, or GST payments are due.
- The business is GST-registered but has not made any transactions.
- The taxpayer is under the Composition Scheme and is required to file GSTR-3B but has no taxable activity.
Filing a Nil return is required to stay in compliance and avoid fines, even if the taxpayer has no transactions. The government has already made it clear that if there is failure to file GST, it can result severe financial and legal repercussions.
Steps to File GSTR-3B Nil Return Online
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Login to the GST Portal
Go to www.gst.gov.in and provide your username, password, and GSTIN. To prevent login issues, make sure you enter the proper information. Your GST account’s registered email address or phone number can be used for reset your password if you have forgot it.
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Visit the GSTR 3B Form
On the home page, navigate to the ‘GST Returns Dashboard’ after logging in. For filing the GST Nil return, select the relevant tax period and financial year. To continue, select ‘Prepare Online’ from the GSTR 3B section.
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Select the Nil Return Option
If no any transactions (purchases, sales, ITC claims, or liabilities) are made for the selected period, a question will be prompted, “Do you want to file a Nil return?” Click on “Yes” to proceed. This feature will de-activate all other data entry fields so that the return can be filed as Nil without entering further details.
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Check and Approve the Information
Before filing the return, click on ‘Preview Draft GSTR-3B’ to confirm that all fields are zero. It is an important step to avoid errors. Ensure that the Nil return checkbox is marked correctly if any quantity appears incorrectly.
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File the Nil GSTR-3B Return
Click on ‘Proceed to File’ and choose the mode of verification. The return can be verified and filed in two different ways:-
- With Digital Signature Certificate (DSC) – Mandated for firms, LLPs, and registered entities.
- With Electronic Verification Code (EVC) – For individual taxpayers, proprietorships, and small and medium enterprises. A one-time password (OTP) will be sent to the registered mobile and email address for verification.
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Acknowledgment and Confirmation
Once successfully submitted, the system will present a success message and an acknowledgment reference number (ARN). This is proof of filing the return. The return status would also be “Filed” in the Returns Dashboard. Taxpayers are kindly requested to save and download a copy of the ARN receipt for future use.
Effects of Non-Filing Nil GSTR-3B Return
The effects of non-filing of a Nil GSTR-3B return within due time can result in-
- Late Fees – The late fee is Rs 20 per day until the GST return is filed.
- GST Compliance Rating Impact – Non-filing of Nil GSTR-3B reduces a business’s GST compliance rating, making future returns harder to file.
- Inability to File Subsequent Returns – Non-filing of GSTR-3B makes it impossible for the taxpayer to file subsequent GSTR-1 and other returns.
- Legal Actions and Penalties – Persistent non-compliance would attract penalties, notices, and suspension of GST registration.
Timely filing of Nil returns will ensure hassle-free compliance and prevent unnecessary complexities.
Common Errors to be Avoided while Filing Nil GSTR
- Failing to File on Time – Regardless of zero transactions, Nil returns need to be filed before to the due date in order to prevent penalties.
- Inaccurate Choice of Tax Period – Always check the period chosen to ensure proper filing.
- Overlooking Acknowledgment Receipt – Always save and download the acknowledgment reference number (ARN) as a proof of filing.
- Not Validating Bank Details – Make sure bank details are current to avoid future refund problems.
Conclusion
It is necessary to file a GSTR-3B Nil Return for those companies with no transactions for a tax period. Even in the absence of sales or purchases, filing the return helps maintain GST compliance and prevents late fees.
The procedure is swift and convenient since it requires very little data input and can be filed online from the GST portal. By doing timely filing, a company maintains clean compliance and pays no undue penalty. It requires just a couple of minutes but guarantees smooth, penalty free filing of tax.
For companies who wish to keep themselves in good compliance status, quarterly filing of GST returns, even if there are no transactions, is a vital task.
Reference
https://www.gst.gov.in/
