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GST Compliance Guide

What Is GST Nil Return?

Understand when and how to file a Nil GST Return to avoid late fees and penalties.

1

What Is GST Nil Return?

GST return must be filed by every registered taxpayer irrespective of turnover or profitability. A Nil return is mandatory when there are no sales or supplies during a month or quarter. Even if no invoices are issued, the taxpayer must log in to the GST portal and submit a Nil return.

2

Who Can File Nil Form GSTR-3B?

Nil Form GSTR-3B can be filed if all the following conditions are satisfied:

  • No sales made during the period
  • No reverse charge liability
  • No Input Tax Credit claimed
  • No tax liability for current/previous period
3

Is Filing GSTR-3B as Nil Mandatory?

Yes. Filing Form GSTR-3B is mandatory for all normal and casual taxpayers even if there is no business activity in a tax period. In such cases, the return must be filed as Nil.

4

Is Filing GSTR-1 as Nil Mandatory?

Yes. All regular taxpayers must file Nil GSTR-1 if there are no outward supplies during the month.

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Compliance Basics

Introduction to Nil Return

Filing a Nil Return is a mandatory compliance step for businesses, even if they have had no financial activity during a specific tax period. Whether you're registered under GST, Income Tax, TDS, or the Companies Act, not filing a Nil Return when applicable can lead to penalties, registration issues, or government notices.

Understanding Nil Returns ensures your business stays compliant and avoids legal trouble.

Introduction to Nil Return

What is a Nil Return?

A Nil Return is a statutory filing submitted when a registered entity has no transactions, sales, purchases, income, or deductions during the reporting period. Even with no activity, filing confirms the business remains active and compliant. Nil Returns apply across GST (GSTR-1, GSTR-3B), Income Tax (ITR-1 to ITR-7), TDS, and ROC filings.

Why Filing a Nil Return is Mandatory?

Nil Return filing is required by law to maintain legal continuity and confirm that a business is still operational, even if financially inactive. Skipping Nil filing is treated as non-compliance and may result in late fees, penalties, or cancellation of registration.

Consequences of Non-Filing

Non-filing attracts late fees, interest, and penalties. It may also lead to cancellation of GSTIN or ROC registration, affecting future filings and approvals.

Legal Basis for Nil Return Filing

Various laws mandate Nil Return filing to ensure regulatory systems track entity status even without revenue:

  • Under GST Law, Rule 61 of CGST Rules mandates return filing even with zero activity.
  • The Income Tax Act allows filing Nil Returns to report zero income.
  • Under TDS provisions, Rule 31A mandates Nil TDS returns if no deduction is made.
  • Companies Act, 2013 requires ROC filings (AOC-4, MGT-7) even with no operations.
Why File?

Stay Compliant
Avoid Penalties

Filing a Nil Return is a mandatory compliance requirement even if your business has zero sales, purchases, or income during a tax period. Non-filing may attract late fees, penalties, cancellation of registration, and blockage of future filings.

Avoid Late Fees

Save up to ₹50 per day in penalties for delayed or missed Nil Return filing.

Active Registration

Keep GSTIN, TAN, and ROC registration active and valid.

Legal Compliance

Mandatory under GST, Income Tax, TDS, EPF, and Companies Act.

Unblocked Future Filings

Prevents portal restrictions on refunds, amendments, or next returns.

When to File a Nil Return?

  • No Sales or Purchases in GST

    If your business has no outward or inward supplies during a GST period, you must still file Nil GSTR-1 and Nil GSTR-3B. GST law mandates filing every period to avoid late fees and GSTIN suspension.

  • No Tax Deduction under TDS

    Entities registered under TDS must file Nil TDS returns (Forms 24Q, 26Q, etc.) through the TRACES portal when no tax is deducted during a quarter, to keep TAN active and compliant.

  • No Income During Financial Year

    Individuals, firms, or companies with zero taxable income may still need to file Nil Income Tax Returns to maintain compliance, carry forward losses, and preserve future credit or financial eligibility.

  • Business Not Operational Yet

    Newly incorporated businesses or startups registered under GST, TDS, or ROC must file applicable Nil Returns even before operations begin to remain legally active and compliant.

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1 Month

Single Filing

399 /mo
  • Nil GSTR-1 & 3B Filing
  • Compliance Check
  • Filing Proof
BEST VALUE

12 Months

Annual Coverage

199 /mo

Billed Annually

  • All Monthly Benefits
  • Dedicated CA Support
  • Monthly Reminders
  • Priority Processing

6 Months

Half-Yearly Validity

249 /mo

Billed Half-Yearly

  • Nil GSTR-1 & 3B Filing
  • Automatic Reminders
  • Data Securely Stored

Types of Nil Returns

Different laws in India require the filing of Nil Returns even when no transactions or income occur during the reporting period. Each Nil Return type has its own format, timelines, and penalties for non-compliance.

GST Nil Return (GSTR-1, GSTR-3B)

If a business registered under GST has no sales, purchases, or input/output tax liability, it must file Nil GSTR-1 (outward supplies) and Nil GSTR-3B (summary return) for that period. Filing is mandatory even with zero turnover to avoid late fees and to keep the GSTIN active.

Income Tax Nil Return (ITR-1 to ITR-7)

Individuals, firms, LLPs, or companies with no taxable income during the financial year must file a Nil Income Tax Return using the appropriate ITR form. This maintains compliance status, supports future credit or investment readiness, and allows carry-forward of losses where applicable.

TDS Nil Return (Form 24Q, 26Q, etc.)

Entities registered under the TDS framework must file Nil TDS Returns when no tax is deducted at source during a quarter. Filing Forms 24Q or 26Q ensures the TAN remains active and compliant with tax regulations.

EPF and ESI Nil Return

Employers registered under EPFO or ESIC must file Nil Returns if there are no employees or no salary disbursements during the period. Filing through the Unified Portal prevents compliance issues, fines, or cancellation of employer codes.

Company Annual Nil Return (ROC)

Companies with no revenue, operations, or transactions during a financial year must still file annual ROC forms such as AOC-4 and MGT-7. This is mandatory under the Companies Act, 2013, and failure leads to penalties or director disqualification.

Documents Required for Filing Nil Returns

While Nil Returns signify no financial transactions during the reporting period, accurate documentation is still essential for verification and legal compliance. The type of return being filed — GST, Income Tax, TDS, EPF, or ROC — determines the supporting documents required.

Basic Business Documents

  • PAN Card of the business or individual
  • Aadhaar Card (for proprietors or individuals)
  • Certificate of Incorporation / Business Registration
  • GSTIN, TAN, or other relevant registration numbers

For GST Nil Return (GSTR-1, GSTR-3B)

  • GST login credentials
  • Previous return filing status (if applicable)
  • Declaration of no sales, purchases, or tax liability

For Income Tax Nil Return (ITR Forms 1–7)

  • Bank account details
  • Form 16 (if applicable, even with zero income)
  • Previous ITR acknowledgement (optional but helpful)
  • Declaration of zero income and no deductions

For TDS Nil Return (Forms 24Q, 26Q, etc.)

  • TAN details and TRACES login credentials
  • Declaration of no tax deduction during the quarter
  • Last TDS return filed (if any, for continuity)

For EPF and ESI Nil Return

  • Establishment ID and login credentials
  • Declaration that no employees were on payroll
  • Salary register showing zero payments

For ROC Nil Return (AOC-4, MGT-7)

  • MCA login credentials (Director DSC)
  • Board Resolution (if applicable)
  • Financial statements with no transactions
  • Auditor’s certificate stating zero activity (where required)

Common Steps for Filing Nil Returns

Even though platforms and forms differ (GST, Income Tax, TDS, ROC), the process of filing a Nil Return generally follows these common steps.

1

Log in to the Official Portal

Access the respective government portal using valid credentials: GST Portal for GSTRs, Income Tax Portal for ITRs, TRACES for TDS Returns, and MCA21 for ROC Filings.

2

Select the Relevant Return / Form Type

Choose the appropriate return form (e.g., GSTR-3B, ITR-1, Form 24Q, AOC-4) for the applicable period and return type.

3

Declare Zero Transaction Status

In applicable fields (sales, purchases, tax payable, income, deduction, etc.), enter zero or NIL values to indicate no financial activity during the period.

4

Verify and Validate the Return

Validate all entries using platform tools. Most portals provide pre-validation or summary preview before submission.

5

Submit Return Using DSC or OTP

Authenticate submission using Digital Signature Certificate (DSC), Aadhaar OTP, or Electronic Verification Code (EVC), depending on platform and entity type.

6

Save Acknowledgment for Record

Download and save the Acknowledgment Receipt, SRN, or Filing Confirmation as proof of timely compliance and for audit reference.

Compliance Deadlines

Due Dates for Filing Nil Returns

Filing Nil Returns within prescribed timelines is as important as filing regular returns. Even with zero transactions, delayed filing leads to penalties, notices, and compliance issues.

GST Compliance

GST Nil Returns

  • Monthly Filers: GSTR-1 by 11th and GSTR-3B by 20th of the following month.
  • Quarterly Filers (QRMP Scheme): GSTR-1 by 13th and GSTR-3B by 22nd or 24th of the month following the quarter (state-wise).
  • Late filing of Nil GST returns may auto-generate late fees even with zero tax liability.
Quarterly Filing

TDS Nil Returns

  • Nil TDS returns must be filed quarterly using Forms 24Q, 26Q, 27Q, etc.
  • Q1 (Apr–Jun): 31st July
  • Q2 (Jul–Sep): 31st October
  • Q3 (Oct–Dec): 31st January
  • Q4 (Jan–Mar): 31st May
  • Even with no deduction, filing Nil TDS returns helps avoid future scrutiny.
Annual Filing

Income Tax Nil Returns

  • Individuals and businesses with zero income must still file Nil ITR.
  • Due Date: 31st July (non-audit cases).
  • Due Date: 31st October (audit cases).
  • Timely filing ensures smooth future ITR filing and loan documentation.
Annual Filing

MCA / ROC Nil Filing

  • Form AOC-4 (Financials): Within 30 days of AGM.
  • Form MGT-7 (Annual Return): Within 60 days of AGM.
  • Nil ROC filing is mandatory even with no operations to keep company status active and avoid heavy penalties.
Non-Compliance Consequences

Penalties for Non-Filing or Delay

Even when there are no transactions, failing to file Nil Returns within prescribed timelines can attract statutory penalties.

GST Nil Return Penalties

  • A late fee of ₹20 per day (₹10 CGST + ₹10 SGST) is charged, even when there is no tax liability.
  • Maximum late fee: ₹500 per return (₹250 CGST + ₹250 SGST).
  • Delay in Nil filing may also block access to the e-way bill system and ITC claims.

TDS / TCS Nil Return Late Fee

  • Under Section 234E, a late fee of ₹200 per day is levied until the return is filed.
  • The maximum penalty cannot exceed the total TDS amount deducted (₹0 in Nil return, but fee still applies)
  • Delays may also result in notices from the Income Tax Department or blacklisting of TAN.

Income Tax Late Filing Charges

  • As per Section 234F, late filing of a Nil ITR attracts a penalty of up to ₹5,000 (₹1,000 if income is below ₹5 lakh).
  • Filing late may restrict access to refund claims, carry-forward of losses, and government verifications.
  • It may also impact future compliance scores and loan approvals.

ROC (Company) Non-Filing Penalty

  • Delay in filing AOC-4 or MGT-7, even if Nil, incurs ₹100 per day per form.
  • Non-compliance may lead to the company being marked as “defaulting” or “inactive” on the MCA portal.
  • Repeated failure may trigger strike-off proceedings or director disqualification under the Companies Act, 2013.
Compliance Awareness

Common Mistakes to Avoid

Many businesses wrongly assume that having no transactions means no compliance responsibility.

Assuming Nil Filing Is Optional

Many businesses believe they don’t need to file returns if there are no transactions. However, Nil return filing is mandatory under GST, Income Tax, TDS, and ROC regulations.

Skipping Filing Due to Dormancy

Companies and LLPs that are temporarily inactive must still file Nil returns to maintain their legal status and avoid disqualification or strike-off actions.

Expired DSC or Login Issues

Errors due to expired Digital Signature Certificates (DSC) or incorrect login credentials can delay the process and lead to last-minute penalties.

Filing the Wrong Return Type

Filing a regular return instead of a Nil return (or vice versa) may result in rejection, rework, or compliance issues. Always ensure you’re using the correct form based on transaction status.

Forgetting to Download Acknowledgment

After filing, it’s crucial to download and save the acknowledgment receipt or SRN for future reference and proof of compliance during audits or assessments.

COMPLIANCE SUPPORT

How Udyog Suvidha Kendra Helps You

Reliable Nil return filing and compliance monitoring to keep your business penalty-free.

1

Hassle-Free Nil Return Filing

We handle end-to-end filing for GST, Income Tax, TDS, ROC, and more. Our experts ensure timely and error-free Nil returns, helping your business stay fully compliant without penalties or legal delays.

2

Compliance Tracking & Alerts

Never miss a due date again. We provide automated reminders, filing alerts, and compliance tracking to ensure your Nil returns are filed accurately and on time—every time, across multiple departments.

3

Expert Support & Documentation

From document preparation to digital signature verification, our team assists you at every step. We guide you through regulatory updates and help resolve technical or legal issues during the Nil return process.

Zero filings. Zero penalties. Total peace of mind.

Let our experts manage your Nil returns while you focus on running your business.

Frequently Asked Questions

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