How to File Nil GST Return: A Complete Guide for 2026

Filing GST returns is a mandatory requirement for all registered businesses in India, even with no transactions. This guide explains how to file nil GST return for 2026, ensuring you remain compliant and avoid penalties. At Bharat Comply, we simplify complex regulations, helping you manage your filings effortlessly so you can focus on growing your business.

What is a Nil GST Return?

Understanding the basics is the first step in compliance. A Nil GST return is a declaration filed by a registered taxpayer who has had no business activity during a specific tax period. It signifies to the government that there were no transactions to report.

Defining a Nil Return in GST

A return is considered ‘Nil’ only if all the following conditions are met for the entire tax period:

• There have been no outward supplies (no sales, including zero-rated or exempt supplies).
• There have been no inward supplies (no purchases) on which tax is payable under reverse charge.
• No other tax liability for the period exists.
• No credit has been claimed or is to be claimed.

Even with zero transactions, filing is mandatory. Failure to do so is a non-compliance that attracts penalties. The process of how to file nil return in gst is straightforward but crucial for maintaining a clean compliance record.

Who is Required to File?

Every entity registered under the Goods and Services Tax (GST) regime must file returns, regardless of business activity. This includes:

• Businesses that have obtained GST registration but have not yet started operations.
• Companies that have temporarily halted their business activities for any reason.
• Startups and MSMEs in their initial phase before revenue generation begins.

Essentially, if you have a GSTIN, you are obligated to file a return for every tax period, just as you would seek Complete Intellectual Property Protection for your brand.

Return Type	Description	Applicability
Nil Return	Filed when there are absolutely no transactions (no sales, no purchases, no tax liability).	Mandatory for all registered taxpayers with no activity.
Zero-Rated Supply Return	Filed when there are outward supplies of zero-rated goods or services (e.g., exports, supplies to SEZ).	This is not a Nil return as it involves transactions.
Exempt Supply Return	Filed when there are outward supplies of goods or services that are exempt from GST.	This is also not a Nil return because a transaction has occurred.

Prerequisites for Filing a Nil Return

Before you begin the process of how to file nil gst return, ensure you have the following details and confirmations ready. This will make the filing process smooth and error-free.

Essential GST Portal Credentials

To access the government’s portal, you must have:

• A valid Goods and Services Taxpayer Identification Number (GSTIN).
• Your User ID and Password for the official GST portal (gst.gov.in).
• Access to the mobile number and email ID registered with the GST portal, as you will need to verify the filing using an OTP sent for E-Verification (EVC).

Confirming No Business Transactions

It is critical to be certain that your return qualifies as ‘Nil’. Before filing, meticulously review your records for the tax period to confirm there were absolutely:

• No sales invoices issued.
• No purchase bills received.
• No debit or credit notes raised.
• No advance payments received or made.

If even a single transaction is recorded, which should be supported by proper Legal Drafting, you must file a regular GST return with the relevant details, not a Nil return.

Filing Nil GSTR-1 on the GST Portal

GSTR-1 is the statement of outward supplies. Filing a Nil GSTR-1 is the first step. The procedure for how to file gst nil return online is designed to be quick and simple.

A Step-by-Step Guide for how to file gst nil return online

Follow these steps to file your Nil GSTR-1:

1. Log in to the official GST Portal using your credentials.
2. Navigate to the dashboard and click on ‘Services’ > ‘Returns’ > ‘Returns Dashboard’.
3. Select the appropriate ‘Financial Year’ and ‘Return Filing Period’ from the dropdown menus and click ‘Search’.
4. On the GSTR-1 tile, click on the ‘PREPARE ONLINE’ button.
5. A message will appear on the next page: ‘You can file a Nil return by just clicking the checkbox for Nil GSTR-1 available on the GSTR-1 dashboard page’. Alternatively, a pop-up might ask if you wish to file a Nil return.
6. Confirm your choice to file a Nil return. You will be taken to a summary page.
7. Click ‘File Statement’, accept the declaration, and verify your return using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).
8. Once submitted, a success message will be displayed, and an Application Reference Number (ARN) will be generated.

How to File GST Nil Return (GSTR-3B)

After filing GSTR-1, you must file GSTR-3B, which is a summary return. The process for how to file nil gst return for GSTR-3B is equally straightforward and can be done online or via SMS, or with professional GST Return Filing Services.

Step-by-Step Portal Filing Guide

Here is the online process for GSTR-3B:

1. Log in to the GST Portal and navigate to the ‘Returns Dashboard’.
2. Select the correct ‘Financial Year’ and ‘Period’ for which you are filing.
3. On the ‘Monthly Return GSTR-3B’ tile, click on ‘PREPARE ONLINE’.
4. A pop-up box will appear asking, ‘Do you want to file Nil return?’. Select ‘Yes’ and click ‘Next’.
5. The system will take you directly to the verification page, as no data needs to be entered.
6. Tick the declaration checkbox to confirm the accuracy of the information.
7. Proceed to file the return using either EVC (OTP sent to your registered mobile number) or DSC (for companies).
8. A success message will confirm your Nil GSTR-3B has been filed successfully.

Filing a Nil Return via SMS

For added convenience, the government allows filing of Nil GSTR-3B via a simple SMS. This is a quick method for those who know how to file nil return in gst without logging into the portal.

1. Compose a new SMS from your GST-registered mobile number.
2. Type the message in the following format: NIL <space> 3B <space> GSTIN <space> Tax Period (MMYYYY). For example: NIL 3B 07ABCDE1234F1Z5 042026
3. Send this SMS to 14409.
4. You will receive a six-digit validation code via SMS.
5. To confirm your filing, send another SMS to 14409 in this format: CNF <space> 3B <space> Code. For example: CNF 3B 123456
6. You will receive a final confirmation message with the ARN.

Consequences of Not Filing Your Return

Ignoring the requirement to file a Nil return can lead to significant financial and operational challenges that can even affect your Business Valuation. The government treats non-filing seriously, irrespective of whether tax was due. Understanding how to file gst nil return on time is essential to avoid these issues.

Late Fees and Penalties Explained

Failure to file any GST return, including a Nil return, by the due date attracts a late fee. As of 2026, the penalty for a Nil return is ₹20 per day (₹10 for CGST and ₹10 for SGST), subject to a maximum cap. Continuous non-filing for six consecutive tax periods can lead to the cancellation of your GST registration, and you will be blocked from filing any subsequent returns until the pending ones are cleared.

Key Due Dates to Remember

Staying on top of deadlines is crucial for compliance. While these dates are standard, always check the official GST portal for any notifications or extensions.

Return Form	Standard Due Date	Filing Frequency
GSTR-1	11th of the following month	Monthly (for taxpayers with turnover > ₹5 crore)
GSTR-3B	20th of the following month	Monthly

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Frequently Asked Questions

Q1. Can I revise a Nil GST return once it has been filed?

No, a GST return, once filed, cannot be revised. Any corrections must be made in the return for the subsequent tax period.

Q2. Is a Digital Signature Certificate (DSC) mandatory for filing a Nil return?

A DSC is mandatory for all public and private limited companies, LLPs, and foreign companies. Other taxpayers can file using an EVC (OTP-based verification).

Q3. What is the difference between a Nil, Zero-rated, and Exempted return?

A Nil return has zero transactions. A return with zero-rated (e.g., exports) or exempted supplies is not a Nil return because it involves reporting transactions, even if no tax is due.

Q4. How many months can we file a Nil GST return?

There is no limit. You can file a Nil return for as long as your business has no transactions during the respective tax periods.

Q5. How do I file a nil tax return?

You can file a nil tax return online through the GST portal by selecting the ‘file nil return’ option for GSTR-1 and GSTR-3B, or via SMS for GSTR-3B.

Q6. What is the fee for filing GST nil return?

There is no government fee for filing a GST nil return on time. However, late filing attracts a penalty of ₹20 per day.