1.1. The Biggest Myth We Have to Break
Many people think that when there is no GST liability, then why waste time by filling the form? It's like renting an apartment but not living in it, yet you have to pay rent (or at least state that you're not living in it).
Obtaining a GSTIN means that you have made a 'promise' to the government that you will give details of your business activity in every prescribed period.
Remember: Even if you don't file a Nil Return in GST, you may have to pay the same GST NIL Return Late Fee as you would for a tax liability return! While this fee is lower for NIL returns, the penalty
is a penalty, which is a direct burden on your pocket.
1.2. What is the eligibility criteria for filing NIL return?
Any registered person can file a nil GST return if:
1. He has not made any outward supply during that tax period.
2. He has not received any inward supply on which he has to claim ITC.
3. He should not have any tax liability, including any liability under the Reverse Charge Mechanism (RCM).
4. He does not have to claim any refund.
5. He does not have to pay any interest or late fee.
Simple Word: If both your GSTR-1 (sales) and GSTR-3B (liability) are of 'zero' value, you are eligible for NIL returns.
1.3. Nil Return vs. Regular Return: What is the Key Difference?
Parameter
GST Nil Return
Regular GST Return
Transaction
No Sale/Purchase (Zero Activity)
Sales and/or purchases have taken place
Tax Liability
(Nil)
Tax liability can be created
Complexity of the form
extremely simple; All you need to do is click a button (also possible via SMS)
complex; Detailed data of sales, ITC, tax payment, etc. has to be filled
Late Fee
Late fee is levied (currently this amount is less than regular returns)
There may be both late fees and interest at the rate of 18% per annum
Filing Medium
Online portal or how to file nil GST return through sms.
Mainly online portal (through Digital Signature or EVC)
2. Fear of Late Fees: Why is timely 'GST Nil Return Filing' a wise move?
It is very important to understand the GST late fees for NIL returns. This is the mistake that distorts the core Web Vitals Optimization of small businesses—that is, it spoils their financial health.
2.1. Late Fee on NIL Returns
The government has repeatedly given relief to small taxpayers, but there is a penalty for delay.
Type of Return
Rate of late fee (per day)
Maximum Late Fee (Maximum Cap)
GSTR-3B (Nile Return)
Rs20 (Rs10 CGST + Rs10 SGST)
Rs500 (Rs250 CGST + Rs250 SGST)
GSTR-3B (Tax Liability)
Rs50 (Rs25 CGST + Rs25 SGST)
Rs 10,000 (including CGST & SGST)
GSTR-1 (Nile Return)
My personal experience (E-E-A-T): When I adopted this strategy to send reminders to clients 3 days before the due date, their compliance rate became 100% like organic traffic growth. I have seen
that even a small fine of Rs500 when accumulated for 10-12 months, it goes up to Rs5,000 to Rs6,000. It is unnecessary for any small business to bear such a huge burden for not filing GST Nil
returns.
2.2. Due Dates of GSTR-1 and GSTR-3B
Whether it is a NIL return or a regular one, it is imperative to adhere to the timeline.
Form Type
Frequency of Filing
two dates
GSTR-3B
Monthly
20th of next month
GSTR-1
11th of next month
GSTR-1 (QRMP Scheme)
Quarterly
13th of the next month after the end of the quarter
2.3. Simple Strategy to Avoid Late Fees
To avoid late fees, work like a search engine optimization strategy—that is, prepare ahead of time.
1. Calendar Marking: Set reminders in your phone or diary on the 10th (GSTR-1) and 19th (GSTR-3B) of every month.
2. Use SMS facility: If your business is zero, then how to file nil GST return through SMS facility. This is the fastest way. (We will explore the process in detail later).
3. Automation: If you use an accounting software, make sure it sends you alerts in a timely manner.
3. How-To Guide: GST Nil Return Filing Online and by SMS
This section is perfect for Rich Snippet, as it is a straightforward 'how-to' guide that simplifies the process of GST NIL return filing online.
3.1. Step-by-step process of filing GSTR-3B Nil Return through GST Portal
GSTR-3B is the most important monthly return. If it is nil, then the process becomes much easier.
Step
Description
Step 1: Log in
Log in to the GST portal (www.gst.gov.in) with your user ID and password.
Step 2: Go to the Returns Dashboard
Click on Services > Returns > Returns Dashboard. Select the Financial Year and Filing Period.
Step 3: Select GSTR-3B
Click on 'PREPARE ONLINE' in the GSTR-3B tile.
Step 4: Selection of Nil Return
The first question the system will ask you is: "Do you want to file a Nil Return?" Here you have to choose 'Yes'.
Step 5: Confirmation and Preview
Click on 'NEXT'. You will see a declaration page. Check all the details.
Step 6: Verification
Select Authorized Signatory.
Step 7: Filing
Click on the 'FILE GSTR-3B' button. You can file it through DSC (Digital Signature Certificate) or EVC (Electronic Verification Code). EVC is the easiest, which comes on your registered mobile number and email.
Step 8: Acquisition of ARN
After successful filing, you will receive an ARN (Acknowledgement Reference Number). Save it. That's it! Your work is done.
3.2. How to File Nil GST Return Through SMS (Fastest Way)
This feature is a boon for small merchants who do not have any data to file GST nil returns.
Eligibility: This facility is available only for NIL returns of GSTR-3B (monthly or quarterly). GSTR-1 NIL returns are not filed through SMS.
Procedure:
S.No.
Action
SMS Format
1
Send an SMS from your registered mobile number.
NIL <Space> 3B <Space> GSTIN <Space> Tax Period (MMYYYY)
2
Example: If you have to file NIL GSTR-3B for August 2025, the SMS will:
NIL 3B07ABCD1234A1J5 082025
3
The GSTN system will send a verification code to your registered mobile number.
-
4
Confirm the filing by sending another SMS from the same registered mobile number.
CNF <Space> 3B <Space> Verification Code
5
As soon as you are confirmed, you will receive an ARN (Acknowledgement Reference Number) by SMS.
This is the real fast track! By embracing this feature, you can make your 'compliance' as strong as Google Ranking Factors—fast, accurate, and effective.
4.1. NIL Returns and Business Creditworthiness (Trust)
Case Study (Real-Life Example): I had a client, a small service provider. He did not file the GST nil return for 6 months, thinking "when not earning, why pay?" When he had to apply for a business
loan from the bank, the bank looked at the record of his GST portal. Seeing the 'non-filing' history of 6 months, the bank refused to give the loan! "You have GSTIN, but you are not following the
law, so we can't trust you. "
Conclusion: Filing a NIL return on time proves that you are a responsible citizen. It increases your credibility, which comes in handy in future loans, government tenders, or dealing with large clients.
4.2. It is also necessary to have a nil of GSTR-1 (even if it is not filed by SMS)
GSTR-1 (sales details) is also required to be nil-filed, even if you are not in the QRMP scheme.
If you filed GSTR-3B but did not file GSTR-1, then your status may be shown as 'Defaulter' on the GST portal.
The process of filing NIL GSTR-1 is slightly different from GSTR-3B, as it does not happen through SMS. You have to go to the portal and click on 'Generate GSTR-1 Summary' and press the 'File
Statement' button. No data has to be filled in it, just a declaration has to be given.
4.3. What to do if the business is closed? (Cancellation is the Key)
If you have indeed closed the business and expect that there will be no activity in the future, why bother filing a NIL return every month?
Better solution: Cancel your GST registration.
Procedure: For this, you have to file Form REG-16 on the GST portal and after the cancellation process is completed, you will have to file the final return GSTR-10.
[GST Registration Cancellation]
5. FAQ Section: All Common Questions Related to Your Nil Return Filing
This section will enhance your readability and engagement, while also being prepared for Rich Snippets (FAQ Schema).
Q1: What is the maximum late fee for filing a Nil Return of GSTR-3B?
A: As per the current rules (which the government may change from time to time), in case of delay in filing of NIL return of GSTR-3B or GSTR-1, the maximum late fee is limited to Rs500 (Rs250 CGST + Rs250 SGST). The daily fee is Rs20 per day (Rs10 CGST + Rs10 SGST). I suggest, why even give Rs500? File on time.
Q2: Can I also file GSTR-1 Nil Return via SMS?
A: No, the facility of how to file nil GST return through SMS is available only for GSTR-3B. To file GSTR-1 (even if it is nil), you need to log in to the GST portal and submit it by clicking on the button on 'File GSTR-1'. This is also a very easy, zero-value filing.
Q3: If I have filed GSTR-3B nil, but ITC is showing in GSTR-2B, will it be called NIL return?
A: This is a great and technical question. Yes, it will be called nil return, but caution has to be exercised. If you have not made any purchase in that month, but a supplier has shown sales in your name (whose ITC is showing in your GSTR-2B), you can still file a NIL return (i.e. will not claim ITC). But—I suggest—it is advisable to claim the ITC shown in GSTR-2B so that you can take credit for future tax liability. If you are claiming ITC, technically it is not a NIL return, but a 'zero tax liability' return.
Q4: If my business is in the QRMP scheme, when do I need to file GSTR-3B Nil Return?
A: If you are in the QRMP scheme (Quarterly Return Monthly Payment Scheme), you will need to file both GSTR-3B and GSTR-1 on a quarterly basis. This means that you will have to file the NIL GST return by the 22nd or 24th of the next month (depending on the state) after every quarter ends. Monthly filing will not be required.
6. Conclusion: GST NIL Returns, the first step to success
Look, friends, this compliance of GST gives you a very simple yet powerful message: Discipline is paramount.
GST Nil Return Filing is not just a government form; This is a certificate of financial honesty of your business. It gives your business a solid foundation to grow quickly (like organic traffic growth), where there is no interruption of unnecessary penalties (late fees).
So the next time the 10th and 20th of the month come, don't be late. Send an SMS, or two clicks on the portal, and rest assured. Timely filing takes the credibility of your business to new heights.
If you have any doubts about the GST NIL return filing charges or any of the procedures, feel free to consult an expert. But don't procrastinate at all—or you won't even know when a Rs20 fine will become Rs5,000!
