GST Return Filing is mandatory for everyone who has GST Registration in India. It is compulsory to do GST Return Filing no matter the business turnover, profitability, or revenue in a month. Taxpayers are required to file NIL returns even if they indicate that they have not issued any invoices for their registered firm at all. In this article, you will understand the online process of Filing NIL GST Return in India.
What is NIL GST Return in India?
There are basically two types of NIL GST Returns that are mentioned below.
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NIL GSTR-1 Return Filing
GSTR-1 is a thorough return that requires you to include each invoice, along with the corresponding amount and taxes. As a result, you may refer to any supplier or client, whether B2B or B2C, using their GSTIN Number in this GST. This means that if you have no suppliers or customers, you have to do NIL GSTR-1 Return Filing.
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NIL GSTR-3B Return Filing
To summarize your GST Return Filing under GST Registration, GSTR3B includes your input tax and out-of-tax amounts. Here you simply need to provide the whole sales amount and taxes, as well as the total purchase amount with input tax credits. Thus, The Nil GSTR-3B must be submitted in the same manner as any other GSTR-3B. If a person has neither outward supply nor inward supply for a given month, he must therefore do NIL GSTR-3B Return Filing on GST Portal.
What is the Online Process of Filing NIL GST Return in India?
- Go to the Official GST Portal.
- Login using your credentials.
- In services, select the Returns Option and go to the Returns Dashboard.
- Choose the Period for which you are doing GST Return Filing and select the type of GST Return(GSTR-3B or GSTR-1).
- Click on Prepare Online Button and Select the YES Option from the question stating ‘Do you want to file NIL Return?’
- Click on Next and Preview DRAFT GSTR-3B.
- Use your Digital Signature Certificate and click on the option file GSTR-3B with DSC.
- Choose the Proceed Option and Click on Sign.
- Once all the steps are completed, you will see the image stating your return has been filed. You will also be able to download the filed NIL GST Return.
The steps mentioned above are similar for filing other nil returns forms too.
Important Note: You can also use EVC to sign your return. However, some company formation entity types and LLP Registration Companies can sign their returns using DSC only.
What are the benefits of NIL GST Return Filing?
- For tax purposes, a NIL ITR acts as your official financial statement.
- The penalty was formerly paid at a rate of Rs 200 each day. However, the Central Board of Direct Taxes issued a notification minimizing the impact. Late costs for failing to file a GST Nil return are now set at Rs 20 per day (i.e. Rs 10 SST & Rs 10 CGST). Thus, you can save your money and avoid paying penalties through NIL GST Return Filing.
- Non-filing of GST returns may lead to the termination of the business’s GST registration, which can have a negative effect on the business’s long-term viability.
- The government always prefers to work with businesses that are well-compliant with the law.
How many times can you submit a NIL GST Return?
There is no limit to the number of NIL GST registrations that may be filed. Everything depends on the taxpayer’s business activities and transactions over the course of a month. A Return must be filed at all costs.
Moreover, If you want any other guidance relating to GST Return Filing or GST Registration, please feel free to talk to our business advisors at 8881-069-069.
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