December 17, 2025 · 10 mins read
Santosh Kumar
Not every month has sales, invoices or external supply activity. A lot of small businesses, freelancers, retailers and service providers have a slow month. Sometimes you may have only just registered for GST but not yet commenced trading. In those cases, the law still requires you to file your GST returns on time—no matter if there’s nothing to report. This is referred to as filing a Nil GST return.
A Nil GST return is precisely as it sounds. You’re basically just informing the government that you had no sales, no purchases, no taxable inward supplies and no output tax liability for the period. The filing is a lot easier than a normal return, but it still has to be done correctly and on time, or you get slammed with a penalty. A lot of business owners think that returns aren’t necessary if there is no business. Alas, this presumption results in late fees and notices. A Nil return is required whenever a GST-registered taxpayer has no transactions.
Nil GST return when you have absolutely no business for the tax period. This means:
1: There were no outward supplies.
2: There was no inward supply liable to tax.
3: There weren’t any buys, expenses, or input tax credits.
4: No reverse charge liabilities.
5: There was no tax due of any sort.
If even one rupee of business has taken place, you can’t do a Nil return. You have to file a regular return instead. Nil returns are for other return formats of GST. The most frequent of these are Nil GSTR-3B and Nil GSTR-1. Taxpayers under the QRMP can also file Nil returns every quarter. New businesses which have recently obtained GST registration also fit into this if they haven’t commenced trading yet.
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A lot of business owners miss this, but filing a Nil GST return on time is just as important as normal GST returns. The GST system auto-detects missing returns and rushes to accrue late fees. Even if your tax is zero, the penalty isn’t. Late fees accrue per day until the return is filed.
A Nil return also helps you keep a clean compliance record. A good compliance rating becomes helpful when you seek loans, credit or e-commerce registrations. Vendors, marketplaces and B2B partners are likely to ask about your compliance status prior to onboarding you. Filing Nil returns on time also allows you to keep a clean record during lean/no-business months.
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You can submit a Nil GST return when:
1: Your business had no sales for tax.
2: No purchases were made.
3: No taxable supplies were received.
4: No reverse-charge transactions occurred.
5: Nothing was to be claimed as input tax credit.
6: Your e-cash ledger and credit ledger remain intact.
Put another way, you only qualify when there has been no activity at all. Something as minor as a cancelled invoice or credit note could disqualify you from a Nil return.
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Because filers are different, there are multiple variants of Nil GST returns. Knowing these helps you make sure you file the right one.
GSTR-3B is the monthly return that taxpayers usually file. No sales, no inward supplies, no reverse charge and no liabilities, you can take a Nil GSTR-3B. This is the most frequent Nil return lodged by SME’s.
GSTR-1 reports outward supplies. Even if you had inward supplies/expenses but no outward supplies, you can’t file Nil GSTR-1. Nil GSTR-1 means there are no outward supplies at all – not even B2B, B2C, exports or exempt supplies.
QRMP taxpayers generally file GSTR-1 quarterly and GSTR-3B either monthly or quarterly, depending on the system. Nil returns hold true here as well. If you have no activity for the quarter, you can lodge a Nil quarterly return. The system further permits Nil filing via SMS for taxpayers who qualify.
Also Read: GST for E-Commerce Sellers: Rules & Compliance Checklist
If you just got GST registration and have not begun trading, the portal still wants you to file returns. Until your business is operational, you will generally lodge Nil returns for GSTR-1 and GSTR-3B. Once you’re up and running, normal returns must be filed.
Now, let’s demystify how to file a GST Nil return online via the GST portal. It’s almost the same for any Nil return, differing just slightly by form.
Step 1: Access the GST Portal: Open the official GST portal on any laptop or mobile browser. Enter your username and password.
STEP 2: Select the Return Type
1: If you are filing GSTR-3B, choose Services, Returns and then GSTR-3B.
2: If you are filing GSTR-1, click Services, Returns, then GSTR-1.
3: Just pick the right year and month.
Step 3: Confirm Nil Option: If the system finds no activity, it will display a Nil Return prompt. Click the tick box confirming that you had no outward supplies, inward supplies, reverse charge transactions or liabilities.
Step 4: Preview the Return: The preview also assists in making sure no information is pre-populated by mistake. This can occasionally occur if invoices were uploaded automatically. Ensure each section reads 0.
Step 5: Submit the Return: Click Submit. Once you submit them, the values freeze.
Step 6 – File with DSC~EVC: If you are a company or LLP, submit DSC. Other taxpayers can utilise OTP-based EVC dispatched to the registered mobile and email. Upon confirmation, the Nil return is filed immediately.
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Small businesses love this. You can submit a Nil GSTR-3B even without signing in. SMS in the specified format from your registered mobile number. The system then prompts for confirmation and files the return.
This only works if you qualify for full Nil eligibility.
Similar to GSTR-3B, Nil GSTR-1 can also be filed via SMS. That’s good for QRMP or unlaunched startups.
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There are a few typical mistakes that lead to rejection or a non-Nil return conversion. For instance, Nil GSTR-1 when there were cancelled invoices, or trying Nil GSTR-3B despite claiming ITC previously. Updating the wrong period is another common problem.
Another regular error is failing to check the auto-drafted data. Now and then, sellers upload invoices with your GSTIN. If these come in GSTR-2A / 2B, you may file a Nil return as well if you are not claiming ITC. But the system might not display it as Nil if transactions come up.
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Failing a Nil GST return still incurs late fees. The fee accumulates daily. Month after month, this deepens the hole for small businesses. Non-filing also prevents filing future returns. GST registration gets cancelled if not filed continuously
So submitting Nil returns on time is crucial to keeping your business compliant and avoiding excessive penalties.
And, as a bonus, when you file everything on time, you have a nice, clean compliance record. This assists when bidding for tenders, government projects or bank loans. Regular filing also avoids any late fees and keeps your GSTIN alive. It broadcasts that you run a tight ship. During audits, a disciplined return history offers you peace of mind.
Also Read: Types of GST Registration in India
Voluntary registered businesses often lodge Nil returns initially. Even if there’s no turnover, GST returns can’t be skipped. A lot of voluntary registrants fall into this trap and get fined afterwards. If you’re voluntarily registered and have no invoices yet, Nil returns is all you've got until you start selling.
Filing a Nil GST return is easy, fast and completely online. Once you know what you’re doing, it takes nearly five minutes. Are you a freelancer, small shop owner, consultant or e-commerce seller? If you had zero business activity for the period, you’ll need to submit a Nil return. It keeps your GST number live, avoids penalties and preserves your good compliance score.
And knowing how to file GST Nil return online, how to file GST return Nil online, means you never lag in compliance, even when income is low. GST portal, mobile app and SMS system make it user-friendly. With on-time compliance, you can spend more time running your business and less time worrying about the paperwork.
A NIL GST return is filed when a registered taxpayer has no sales, no purchases, no inward supplies, no reverse charge payments and no tax liability for the filing period. It instead just tells the government that your business had no action.
No. Even minor or inward supplies exclude you from a Nil return. So, you’ve gotta file a regular return and report it.
You can file it by logging in to the GST portal, choosing the return type, verifying NIL and filing using DSC or EVC. You can even file Nil GSTR-1 and Nil GSTR-3B via SMS if everything is nil.
Yes. Many voluntarily registered businesses file Nil returns in the first few months until operations start. Nil returns are compulsory for each enrolled taxpayer, even the optional ones.
Nil GSTR-1 pertains only to outward supplies. Nil GSTR-3B includes outward supplies, inward supplies, reverse charge liability and tax payments. You can qualify for one and not the other based on activity.
Yes. As far as your GSTIN is live, you need to file returns on a regular basis even if you have no business activity. Non-filing also attracts penalties and may result in suspension.
Late fees begin from the due date. Your prospective returns get stuck, your GSTIN is at risk of cancellation, and you will receive notices. Ought to be better to file Nil returns on time to avoid such a mess.
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