A Nil GST Return is required to be filed when a registered taxpayer has no sales, no purchases, no tax liability and no ITC activity for the tax period. Even in months where there is no business activity, GST returns cannot be skipped. Failure to file leads to late fees, suspension of GST registration or cancellation.
When is a Nil GST Return Required?
A Nil return must be filed if, for the given tax period:
Firstly, when there is no outward supply (no sales and no invoices issued).
Secondly, when there is no inward supply (no purchases)
Thirdly, when there is no GST liability under normal or reverse charge
Fourthly, when no ITC is claimed, reversed or carried forward
Lastly, when there is no TDS or TCS liability
Types of Nil GST Returns
There are 6 types of GST returns:
| Return Type | Purpose | Applicability | Frequency |
| GSTR-1 Nil | Reporting outward supplies | When there are no sales | Monthly or Quarterly |
| GSTR-3B Nil | Summary return with payment | No sales, purchases, or tax liability | Monthly |
| CMP-08 Nil | For composition dealers | No turnover in quarter | Quarterly |
| GSTR-4 Nil | Annual return for composition | When no business and no tax | Annually |
| GSTR-9 Nil | Annual return | When the entire year has no business activity | Annually |
Methods of Filing Nil Returns
Nil returns may be filed through:
GST portal online
- SMS filing (available only for Nil GSTR-3B and Nil GSTR-1)
- GST offline utility
- Authorised mobile applications
Filing Nil GSTR-3B Online
- Login to the GST portal at www.gst.gov.in
- Click on Returns Dashboard
- Select the month and financial year
- Click on Prepare Online under GSTR-3B
- Select Yes when asked if you want to file a Nil return
- No data entry fields will be displayed
- Click on Preview Draft GSTR-3B
- Submit and proceed to File with DSC or EVC
- Enter the OTP if filing through EVC
- Download the acknowledgment after successful filing
Filing Nil GSTR-3B through SMS
This facility is available only if there is absolutely no data to be reported.
Prerequisites:
- Mobile number must be registered and verified on GST portal
- No liability, ITC, RCM or supplies in the tax period
Step 1: Send SMS to 14409 in the following format:
NIL 3B <GSTIN> <Tax period>
Example for April 2025:
NIL 3B 27ABCDE1234F1Z5 042025
Step 2: An OTP will be received. Reply in the following format:
3B OTP <OTP Number>
A confirmation SMS will be sent after successful filing.
Filing Nil GSTR-1 through SMS
NIL 1 <GSTIN> <Tax period>
Example:
NIL 1 27ABCDE1234F1Z5 042025
Reply with:
1 OTP <OTP Number>
Filing Nil CMP-08 (Composition Scheme)
- Login to the GST portal
- Go to Returns and select CMP-08
- Select the relevant quarter
- Click on Nil Return
- File using DSC or EVC
Eligibility to File Nil GSTR-9 (Annual Return)
Nil GSTR-9 can be filed only when:
- There are no outward supplies during the year
- There are no inward supplies during the year
- No ITC is claimed, reversed or utilised
- No tax liability exists
- No refund was claimed
- No demand or late fee is pending
Consequences of Not Filing Nil Returns
Return filing is compulsory even without business transactions. Non-filing can lead to:
- Late fees
- System-based suspension of GST registration
- Cancellation in case of continued default
Late fee for Nil returns, if applicable:
- CGST: Rs 10 per day
- SGST: Rs 10 per day
- Total: Rs 20 per day (often waived for Nil return filers by notification, subject to period)
Conclusion
Filing Nil GST returns is a mandatory compliance requirement. The process has been simplified with options such as SMS filing, especially for GSTR-1 and GSTR-3B. Taxpayers should ensure that Nil returns are filed on time to avoid penalties and maintain active registration status.
