Nil Return Filing - Stay Compliant Even with No Transactions

Even if your business has zero sales, purchases, or income, filing a Nil Return is legally mandatory under GST, Income Tax, TDS, and ROC laws. Non-filing can attract penalties, compliance issues, or even registration cancellation. Whether you're a dormant company, small business, or startup, timely Nil Return filing keeps your business status active and compliant. Udyog Suvidha Kendra ensures fast, accurate Nil filings across all platforms.

Nil Return Registration

NIL Return Application

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WHAT IS GST NIL RETURN

1. What is GST NIL RETURN

GST return has to be filed by a taxpayer having GST registration irrespective of business turnover or profitability in a month. Nil return must be filed by registered taxpayers compulsorily when there are no sales or supplies during the month or quarter. Hence, even if there were no invoices issued during a month, 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 for a tax period can be filed, if you:

  1. Have not made any sales and
  2. Do not have any reverse charge input
  3. Do not intend to take any Input tax credit and
  4. Do not have any Liability for that particular or earlier Tax Period.
3. Is filing of Form GSTR-3B as Nil return mandatory?

Filing of Form GSTR-3B is mandatory for all normal and casual taxpayers, even if there is no business activity in any particular tax period. So, for such tax period, the return can be filed as NIL.

4. Is filing of Form GSTR-1 as Nil return mandatory?

Yes, NIL GSTR-1 return must be filed by all regular taxpayers having GST registration when if there were no sales transaction in a month.

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 the basics of Nil Returns ensures your business stays compliant and avoids unnecessary legal trouble.

What is a Nil Return?

A Nil Return is a type of statutory filing submitted when a registered entity has no transactions, sales, purchases, income, or deductions during the reporting period. Even if there’s nothing to report, the government expects the filing to be made to confirm that 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?

Filing Nil Returns is required by law to maintain legal continuity and to indicate that the business is still operational—even if inactive financially. Skipping Nil Return filing may be seen as non-compliance, potentially resulting in late fees, interest charges, or cancellation of registration. It also keeps the business eligible for future filings, government approvals, refunds, and updates across departments.

Legal Basis for Nil Return Filing

Various laws mandate Nil Return filing. For example:

  • Under GST law, Rule 61 of the CGST Rules requires return filing even with zero activity.
  • The Income Tax Act allows individuals or entities to file Nil Returns to report zero income.
  • Under TDS provisions, Rule 31A mandates Nil TDS returns if no deduction is made.
  • For companies, the Companies Act, 2013 requires annual ROC returns (AOC-4, MGT-7) even if there's no business operation.

These frameworks ensure the regulatory system tracks entity status, regardless of revenue.

Legal Basis for Nil Return

When Should You File a Nil Return?

Filing a Nil Return becomes necessary when your registered business entity remains inactive in terms of taxable transactions but is still legally active. Whether under GST, TDS, Income Tax, or ROC, failure to file despite having no business activity can result in penalties, notices, or cancellation of registration. Below are the key scenarios where Nil Return filing is mandatory:

1

No Sales or Purchases in GST

If your business has no outward supplies (sales) or inward supplies (purchases) during a GST return period, you must still file GSTR-1 and GSTR-3B as Nil Returns. The GST law requires filing every period, regardless of activity, to avoid late fees and suspension.

2

No Tax Deduction under TDS

Registered entities under the TDS regime (like companies or government offices) must file Nil TDS returns when no tax has been deducted during a quarter. Forms such as 24Q or 26Q must be submitted through the TRACES portal, even if the deducted amount is zero.

3

No Income During the Financial Year

If an individual, partnership, or company has no taxable income, it may still be required to file a Nil Income Tax Return, especially if registered or intending to carry forward losses, claim deductions, or maintain legal status for future creditworthiness and compliance.

4

Business Not Operational Yet

Newly incorporated businesses or startups that haven’t commenced operations but are already registered under GST, TDS, or ROC are still required to submit applicable Nil Returns. This ensures that the business is treated as active and compliant by the government authorities.

Types of Nil Returns

Different laws in India require the filing of Nil Returns, even when no transactions or income have occurred during the reporting period. The following are the key types of Nil Returns applicable under GST, Income Tax, TDS, EPF/ESI, and Company Law, each having its own prescribed 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 maintain an active GSTIN.

GST Nil Return (GSTR-1, GSTR-3B)
Income Tax Nil Return (ITR-1 to ITR-7)

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

Individuals, firms, LLPs, or companies with no taxable income or earnings during the financial year should file a Nil Income Tax Return using the appropriate ITR form. This helps retain compliance status, carry forward losses, and maintain credit or investment readiness.

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

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

Entities registered under the TDS framework must file Nil TDS Returns when no tax was deducted at source during a quarter. This includes forms like 24Q for salaries and 26Q for non-salaried payments, and it ensures that the TAN remains active and compliant.

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

EPF and ESI Nil Return

Employers registered under EPFO or ESIC must file Nil Returns if there were no employees or no salary disbursement during the period. Filing through the Unified Portal helps prevent unnecessary compliance issues, fines, or cancellation of employer codes.

EPF and ESI Nil Return

Company Annual Nil Return (ROC)

Companies that have no revenue, operations, or transactions during a financial year must still file annual ROC forms such as AOC-4 (financials) and MGT-7 (annual return). This filing is compulsory under the Companies Act, 2013, and skipping it may lead to penalties or disqualification of directors.

Company Annual Nil Return (ROC)

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 set of supporting documents required. Below is a general checklist for each category:

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 (Form 24Q, 26Q, etc.)

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

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 (for some cases)

Common Steps for Filing Nil Return

Even though the platforms and forms may differ (GST, Income Tax, TDS, ROC), the process of filing a Nil Return usually 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
● 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 each applicable field (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 offer pre-validation or summary previews before submission.

5

Submit the Return Using DSC or OTP

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

6

Save Acknowledgment for Record

Download and save the Acknowledgment Receipt, SRN, or Filing Confirmation, which acts as proof of timely compliance and may be required in audits.

Due Dates for Filing Nil Returns

Filing Nil Returns on time is just as important as regular returns. Even if there are no transactions, failing to file on time can lead to penalties and compliance issues. Below is a breakdown of due dates across various departments:

GST Monthly/Quarterly Due Dates

  • Monthly GST Returns (GSTR-1 & GSTR-3B): Due by 11th and 20th of the following month, respectively.
  • Quarterly Filers under QRMP Scheme: GSTR-1 by 13th, GSTR-3B by 22nd or 24th of the month following the quarter (based on the state).
  • Filing Nil GST returns late may result in auto-generated late fees, even for zero liability.
GST Due Dates

TDS Quarterly Filing Dates

  • TDS Nil Returns must be filed quarterly using Form 24Q, 26Q, 27Q, etc.
  • Due Dates:
      • 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 a Nil TDS return helps avoid future scrutiny.
TDS Due Dates

Income Tax Nil Return Last Date

  • Individuals and businesses with no income or zero taxable income must still file a Nil ITR.
  • Due Date:
      • 31st July (for individuals not requiring audit)
      31st October (for businesses requiring audit)
  • Filing on time ensures smooth future ITR filing and loan documentation.
ITR Due Dates

MCA Annual Filing Dates

  • Form AOC-4 (Financials): Due within 30 days of AGM
  • Form MGT-7 (Annual Return): Due within 60 days of AGM
  • For companies with no operations or transactions, Nil ROC filing is mandatory to keep the company status active and avoid hefty penalties.
MCA Due Dates

Penalties for Non-Filing or Delay

Even if your business has no transactions, failing to file Nil Returns on time can result in statutory penalties and legal issues. Each regulatory body imposes its own late fees and consequences, as outlined below:

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.

Common Mistakes to Avoid

Businesses often make avoidable errors while filing Nil Returns, assuming that the absence of transactions means no legal responsibility. Below are common mistakes you should steer clear of to maintain compliance and avoid penalties:

  • 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.
  • Missing DSC or Credential Issues: Errors due to expired Digital Signature Certificates (DSC) or incorrect login credentials can delay the process and lead to last-minute penalties.
  • Filing Wrong Form 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.
Common Mistakes in Nil Return Filing

How Udyog Suvidha Kendra Helps You

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.

NIL Return Registration FAQs

What is a Nil Return?
A Nil Return is a statutory filing submitted when a business has no financial transactions during a specific period. It confirms compliance even with zero activity, ensuring you avoid penalties from GST, Income Tax, TDS, or MCA authorities.
Yes, Nil Return filing is mandatory for registered businesses even if there are no transactions. Failing to file on time can lead to penalties, compliance flags, and restrictions from GST, TDS, Income Tax, and ROC authorities.
Any registered taxpayer under GST, TDS, Income Tax, or MCA with zero transactions during the filing period must file Nil Returns. This includes startups, dormant companies, or inactive firms to maintain active legal status.
Non-filing may attract penalties such as ₹20 per day for GST, ₹200 per day for TDS, or ₹100/day under ROC. It can also result in loss of registration, blocked ITC, or director disqualification.
Yes, depending on the compliance type. GST may be monthly or quarterly, TDS is quarterly, and ROC Nil Returns are annual. Each department has separate due dates and requirements for Nil Return filing.
There is no government fee for Nil Return filing itself. However, professional service charges may apply. Late filing may attract penalties under different laws, making timely filing crucial.
Yes, Nil GST Returns (GSTR-1 and 3B) can be filed via the GST portal using your credentials. However, businesses often prefer expert help to avoid errors or missed filings across tax departments.
Basic documents like GST login credentials, DSC for ROC, PAN, Aadhaar, and business registration details are needed. No invoices or financials are required as there are no transactions involved.
Yes, a valid Digital Signature Certificate (DSC) of the director is mandatory for filing Nil Annual Returns like AOC-4 and MGT-7 with the Ministry of Corporate Affairs (MCA).
No. Inactivity does not exempt you from compliance. Companies and LLPs must still file Nil Returns to maintain their active status and avoid penalties or strike-off by regulatory authorities.
Yes. If your newly registered business has no transactions during the initial months or year, you are required to file Nil Returns across GST, ROC, and TDS if you are registered.
Yes, late filing is penalized irrespective of tax dues. For example, GST and TDS late filing penalties apply per day, and ROC filings can attract ₹100 per day even with zero income.
You can file a belated return, but penalties may apply. For ROC, it may include additional fees and warnings. For Income Tax, late filing beyond due date may restrict refund or loss carryforward.
Yes, employers with no employee activity in a month must file Nil EPF or ESI returns. Non-filing may attract notices or deactivate the employer code in government records.
Udyog Suvidha Kendra offers end-to-end support for timely Nil Return filing across GST, ROC, TDS, and Income Tax. We ensure zero errors, timely alerts, and expert handling to keep your compliance stress-free.