How to File NIL GST Returns and When They Are Applicable?

Posted In | Finance | Accounting Software | India Accounting Tax

Goods and Services Tax (GST) is a comprehensive, multi-level, destination-based tax that is applied on every value addition. It is an indirect tax that has replaced many indirect taxes in India such as excise duty, VAT, services tax, etc. The tax is applicable to you if you are involved in buying or selling goods and services. However, there are situations where a taxpayer may need to file a NIL GST return, even if they have not made any sales or purchases during the tax period.
 

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When is a NIL GST Return Applicable?

A NIL GST return is applicable when a taxpayer has not conducted any business during the tax period. This means no sales or purchases have been made, and no input tax credit has been claimed. Even in such scenarios, the taxpayer is obliged to file a NIL return to stay compliant with the GST laws.
 

How to File a NIL GST Return?

Filing a NIL GST return is a simple process that can be completed online. Here is a step-by-step guide on how to proceed:
 

  1. Visit the GST portal at www.gst.gov.in.
     
  2. Login using your credentials.
     
  3. Under the 'Services' tab, select 'Returns' and then 'Returns Dashboard'.
     
  4. Select the financial year and tax period for which you want to file the return.
     
  5. If you have not made any sales or purchases, and have not claimed any input tax credit, click on 'Prepare Online' under the 'Monthly Return GSTR3B' tab.
     
  6. Select 'Yes' for the question 'Do you want to file Nil return?'.
     
  7. Click on 'Next' and then 'Submit' to file your NIL GST return.
     

Remember that even if you have not conducted any business during the tax period, it is mandatory to file a NIL GST return. Failure to do so can result in penalties.

 

The process of filing a NIL GST return is quite straightforward. It is a legal obligation for every registered taxpayer, even if no business activity has been conducted during the tax period. This helps in maintaining transparency in tax administration and ensures compliance with the tax laws.