GST NIL Return Filing Service
Avoid Penalties & Stay CompliantAre you a GST-registered business with no transactions this month? Don't risk penalties and GSTIN cancellation. Setindiabiz provides professional GST NIL return filing services across India, ensuring 100% compliance with GST laws. Our expert team handles your NIL returns promptly, keeping your business penalty-free and audit-ready.
What is GST NIL Return?
A GST NIL return is a mandatory filing requirement when your GST-registered business has zero sales, zero purchases, and zero tax liability during a tax period. Despite having no business transactions, Section 39 of the CGST Act 2017 makes filing returns legally mandatory for every registered taxpayer. Many small businesses and startups mistakenly believe that "no business means no filing" - this misconception can cost you dearly. The GST law treats non-filing of NIL returns as seriously as non-filing regular returns, attracting penalties and potentially leading to GSTIN suspension.
Key Legal Provisions Governing NIL Returns
| No | Section | Provision |
|---|---|---|
| 1. | Section 39, CGST Act 2017 | Every GST-registered person must file returns, even with zero transactions. There are no exceptions for inactive businesses. |
| 2. | Rule 59, CGST Rules 2017 | Outward supply details (GSTR-1) must be filed by the 11th of next month, declaring all sales or NIL status. |
| 3. | Rule 61, CGST Rules 2017 | Summary return (GSTR-3B) due by the 20th month, consolidating tax liability even if zero |
| 4. | Section 47, CGST Act 2017 | Late filing attracts ₹20/day penalty (₹10 CGST+₹10 SGST), max ₹500 for NIL returns. |
GST NIL Return Filing Cost
- Monthly NIL Return Filing
- GSTR-1 & GSTR-3B
- GST Portal Login Support
- Return Preparation & Submission
- DSC/EVC Authentication
- Filing Acknowledgment & Records
- Deadline Reminders & Alerts
- 100% Online Process
Critical Due Dates For GST Return Filing
Time is money in GST compliance – every day past the due date costs you ₹20 in automatic system-generated penalties. Unlike other taxes, these late fees are unavoidable and accumulate quickly, turning a simple oversight into a costly mistake. Missing these deadlines triggers automatic penalties. Here's your essential compliance calendar:
| No | Return Type | Frequency | Due Date | Late Fee Structure |
|---|---|---|---|---|
| 1. | GSTR-1 (Outward Supplies) | Monthly | 11th of next month | ₹20/day (Max ₹500) |
| 2. | GSTR-3B (Summary Return) | Monthly | 20th of next month | ₹20/day (Max ₹500) |
| 3. | GSTR-4 (Composition) | Quarterly | 18th after quarter-end | ₹20/day (Max ₹500) |
| 4. | GSTR-9 (Annual Return) | Yearly | 31st December | ₹200/day (Max 0.25% of turnover) |
Pro Tip: Set reminders for the 10th and 19th of each month to never miss GSTR-1 and GSTR-3B deadlines. | ||||
Monthly vs Quarterly GST Returns
Not all businesses file GST returns at the same frequency. The government offers flexible filing options based on turnover and business type, including the popular QRMP (Quarterly Return Monthly Payment) scheme introduced to ease compliance for small taxpayers. Under QRMP, eligible businesses can file returns quarterly while paying taxes monthly, getting the best of both worlds - reduced paperwork with regular tax deposits. Understanding these options can significantly reduce your compliance burden while ensuring timely tax payments.
Comparison: Monthly vs Quarterly Filing Options
| No | Criteria | Monthly Filing | Quarterly Filing (QRMP) | |
|---|---|---|---|---|
| 1. | Eligibility | Mandatory for turnover >₹5 crores | Optional for turnover ≤₹5 crores | |
| 2. | Returns Per Year | 24 returns (GSTR-1 & 3B monthly) | 8 returns (GSTR-1 quarterly) | |
| 3. | Tax Payment | Monthly with return | Monthly via challan | |
| 4. | Due Dates | 11th & 20th monthly | 13th & 22nd/24th quarterly | |
| 5. | ITC Benefits | Full & Immediate | Full with some delay | |
| 6. | Best For | Regular sales, large businesses | Small B2C businesses | |
QRMP Advantage: File 66% fewer returns while maintaining monthly tax payments | ||||
Step-by-Step Guide: How to File GST NIL Return
Filing a NIL return doesn't have to be complicated. While the GST portal may initially seem intimidating, the process takes 5-7 minutes once you know the steps. Whether you prefer the traditional online portal method or the newer SMS facility for quick filing, we've broken down each option into simple, actionable steps.
1
Step-1: Login to GST Portal
Access www.gst.gov.in and enter your username (GSTIN) and password. Complete the captcha verification and click 'Login'. Ensure you use a compatible browser (Chrome/Firefox recommended) for a smooth filing experience.
2
Step-2: Navigate to the Returns Dashboard
From the main menu, select 'Services' → 'Returns' → 'Returns Dashboard'. This displays all pending and filed returns. Check for any pending returns from previous periods before proceeding with current filing.
3
Step-3: Select Return Period
Choose the correct Financial Year and Return Period (month/quarter) from the dropdown menus. Verify the period carefully, as returns cannot be revised once they are filed. Wrong period selection leads to compliance gaps.
4
Step-4: Choose the NIL Return Option
Click on the relevant return (GSTR-1 or GSTR-3B) and select 'Prepare Online'. The system will detect zero transactions and show a popup: "No records found. File NIL return?" Click 'Yes' to proceed with the NIL filing.
5
Step-5: Review and Confirm
The system auto-populates all fields with zeros. Review the summary page, which shows nil values across all sections. Check taxpayer name, period, and ARN details. Any error here requires starting over.
6
Step-6: Submit with DSC/EVC
Click 'Submit' and choose an authentication method: DSC (Digital Signature) or EVC (Electronic Verification Code). For EVC, enter the OTP sent to your registered mobile. Your submission generates a unique ARN immediately.
7
Step-7: Download Acknowledgment
After a successful filing, download the acknowledgement receipt showing the ARN, filing date, and time. Save this PDF for records as proof of compliance. Email yourself a copy for backup documentation.
SMS-Based NIL GST Return Filing Process
Step - 1
Compose NIL Return SMS
Type message in exact format: NIL<space>Return-Type<space>GSTIN<space>Period. Example: 'NIL GSTR3B 29ABCDE1234F1Z5 082024'. Even minor format errors will result in filing failure.Step - 2
Send to 14409
Send the formatted message to 14409 from your registered mobile number only. Messages from unregistered numbers are automatically rejected. Standard SMS charges apply as per your mobile plan.
Step - 3
Receive Confirmation
Within 10-15 minutes, receive a confirmation SMS with the transaction ID. If there is no response in 30 minutes, check the format and resend. Save this SMS as filing proof, along with regular acknowledgements.
Penalties & Consequences of Not Filing NIL Returns
GST penalties aren't just financial burdens – they're automatic system-generated consequences that compound daily and can escalate to business-threatening levels. What starts as a mere ₹20 daily late fee can snowball into GSTIN suspension, blocked refunds, and even registration cancellation. Understanding the penalty structure isn't about fear-mongering; it's about recognising that the cost of non-compliance far exceeds the minimal effort required for timely NIL filing. Here's what you risk by ignoring those zero-transaction periods: GST Penalty Structure for Non-Filing
| No | Violation Type | Penalty Amount | Legal Provision | Consequences |
|---|---|---|---|---|
| 1. | Late Filing - NIL Returns | ₹20/day (₹10 CGST + ₹10 SGST) Max: ₹500 per return | Section 47 + Notification 19/2021 | Daily accumulation until filled |
| 2. | Late Filing - With Tax Liability | ₹50/day (₹25 CGST + ₹25 SGST) Max: 0.25% of turnover | Section 47, CGST Act | Higher penalty for tax dues |
| 3. | Non-Filing Beyond 3 Months | Late fee + Show cause notice | Section 46, CGST Act | Compliance rating downgrade |
| 4. | Continuous Non-Filing (6+ Months) | GSTIN suspension proceedings | Rule 21A, CGST Rules | Business operations affected |
| 5. | Post-Suspension Non-Compliance | GSTIN cancellation | Section 29(2), CGST Act | Complete deregistration |
| 6. | Annual Return Default | ₹200/day Max: 0.25% of turnover | Section 47, CGST Act | Blocks future registrations |
Note: IGST has no late fee component for NIL returns. Penalties are non-negotiable and system-enforced without manual intervention. | ||||