How to File GSTR 1 Nil Return?

All registered taxpayers must file a GST nil return regardless of their business's lack of monthly or quarterly sales. Now registered persons can submit GSTR-1 nil returns through SMS via their mobile phones from July 1st 2020. The total number of login requirements to access the GST portal is now minimised through this process resulting in swift and convenient compliance.

In this guide, you will learn what a GST nil return is and provide a step-by-step process on how to file GSTR-1 nil return effortlessly.

What Is GSTR-1 Nil Return?

A GSTR-1 return is classified as a bil return for a specific tax period (monthly or quarterly) if all the following conditions are met:

• No sales or outward supplies are recorded
• No taxable supplies are subject to reverse charge
• Reports show no zero-rated supplies together with no deemed exports
• A taxpayer need not amend any past tax return periods
• Nobody needs to alter or declare credit or debit notes
• Advances from service agreements do not require any reporting or adjustment

A taxpayer can submit a Nil GSTR-1 return through the GST portal or by SMS if all defined conditions match the situation.

Prerequisites for Filing Nil GST Return

To file a Nil GST Return or GSTR-1 through SMS, ensure the following conditions are met:

• You must be registered as a normal taxpayer, SEZ developer or SEZ unit with a valid GSTIN.
• Your filing frequency on the GST Portal should be set to either a monthly return or a quarterly return.
• An authorised signatory must be registered on the GST Portal and their mobile number should be linked to the account.
• The online Form GSTR-1 on the GST Portal must not contain any saved or submitted data.

How to File Nil GSTR-1 Return?

Previously, filing a Nil GSTR-1 required logging into the GST portal, navigating to the return dashboard, and answering a set of questions to determine the applicable sections.

Taxpayers had to select ‘Yes’ for the question, "Do you want to file a Nil return?" While this option is still available, the process is lengthy and involves multiple steps.

Now, if you are a GST-registered taxpayer with no sales or outward supplies for a specific tax period, you can use the SMS facility to file a nil Form GSTR-1. Follow these simple steps to file a GSTR-1 nil return via SMS:

Step 1: Send an SMS to 14409 from your registered mobile number in this SMS format: NIL R1 GSTIN Tax period

Example: If your GSTIN is 33ABCP1234Z1Z1 and you need to file a quarterly return  for April-June 2020, type:

NIL R1 33ABCP1234Z1Z1 062020

Step 2: Receive a verification code (six-digit OTP) on your mobile. This code remains valid for 30 minutes.

Step 3: Confirm your filing by sending another SMS to 14409 in this format: CNF R1 Code

Example: If the code is 654321, type: CNF R1 654321

Step 4: Get confirmation with an Acknowledgement Reference Number (ARN). You can also check your return status on the GST portal.

This SMS-based filing makes nil GSTR-1 submission quicker and more convenient for taxable persons.

Steps to File a Nil GSTR-1 Return

If you want to file a GSTR-1 nil return online, you need to follow the steps given below: 

Step 1: Access the GST Portal

You should open the GST portal using your internet browser as your first step. Enter the GST portal then use the ‘Services’ tab to access the ‘Returns’ selection.

Step 2: Choose ‘File Nil GSTR-1’

The ‘Returns Dashboard’ displays all GST returns which pertain to you. Navigate to the Nil GSTR-1 filing option because you are submitting a zero-value return.

Step 3: Select the Relevant Return Period

The GSTR-1 ‘File Nil‘ selection will lead you to another page for return period selection after completion. Hit ‘Search’ to advance after choosing the appropriate month or quarter from the drop-down selection.

Step 4: Confirm Nil Return Status

A summary of your past GSTR-1 filings will appear. Since no sales were recorded for the selected period, confirm that you are filing a Nil return by clicking on ‘File Nil GSTR-1’.

Step 5: Authenticate Using Aadhaar

In this step, verify your Aadhaar details by entering your Aadhaar number and clicking ‘Proceed’. If Aadhaar verification is unavailable, you can use an Electronic Verification Code (EVC) or Digital Signature Certificate (DSC) instead.

Step 6: Submit Your Nil Return

After completing the verification, finalise the process by clicking on ‘File GSTR-1’. Once the return is successfully filed, a confirmation message will be displayed on the screen.

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Why Is It Necessary to File a Nil GST Return?

A GST-registered dealer must file a nil return if no taxable outward supplies were made during the tax period for which the return is being submitted.

Generally, registered taxpayers are required to provide details of their tax liabilities and outward supplies in returns like GSTR-3B and GSTR-1. However, if a taxpayer has not made any sales, they are not required to furnish the extensive details that a regular taxpayer would submit on the GSTN portal.

Who Needs to Submit a Nil GSTR-1?

A taxpayer can opt for NIL GSTR-1 filing through SMS if no outward supplies were made during the specific month or quarter. This includes transactions where tax is applied on a reverse charge basis, as well as zero-rated supplies and deemed exports.

Additionally, the taxpayer must ensure:

• No modifications or updates are required for supplies reported in previous returns
• No credit or debit notes need to be declared or revised
• No advance payments for services need to be reported or adjusted

Benefits of Filing GSTR-1 Nil Return 

The following are the advantages of GSTR-1 nil return filing:

• Hassle-Free Filing: Filing regular returns without using any additional software. The process is simplified for better accessibility and ease of use.
• Reduced Errors: By skipping detailed tables and entries, businesses reduce the number of mistakes and omissions.
• Saves Time and Effort: Submit a nil return with just a single SMS from the registered mobile number in a predefined format, eliminating the need to fill out lengthy online forms.
• Ensures Compliance: Filing GSTR-1 nil return helps businesses fulfil their compliance obligations for GST regulations because it enables straightforward submission which prevents them from facing fees or penalties for late or delayed submissions.

GST Return Due Dates in India

The due date to file Form GSTR-1 depends on the taxpayer’s filing frequency.

For those who file monthly, the due date is the 11th of the following month. For quarterly filers, it is the 13th of the month following the quarter.

For instance, the GSTR-1 for January 2025 had to be filed by 11th February 2025, while the GSTR-1 for the January–March 2025 quarter was due by 13th April 2025.

The government may also extend these deadlines through official notifications.

GST returns must be submitted regularly to report sales, purchases and tax liabilities. Below are the key deadlines for GST return filings in India:

• GSTR-3B:
  • A monthly summary return for tax payments.
  • Due Date: 20th of the next month (varies based on state).
  • QRMP taxpayers file quarterly, with deadlines on the 22nd or 24th of the month following the quarter.
• GSTR-9:
  • An annual return consolidating yearly transactions.
  • Due Date: 31st December of the following financial year.
• GSTR-4:
  • Annual return for businesses under the composition scheme.
  • Due Date: 30th April of the next financial year.

A timely filing of returns enables tax compliance while minimising penalties to receive input tax credits without delays. Businesses allow automated tools together with accounting software to monitor deadlines and maintain correct submissions.

Conclusion

The filing of GSTR-1 nil return remains essential for compliance purposes although there are no outward taxable supplies during a tax period. Taxpayers can now file their paperwork either using SMS communication or directly on the GST portal due to governmental process simplification.

Knowing the process to file GSTR-1 nil return allows businesses to prevent penalties and carry out tax submissions on time as well as optimise their tax documentation procedures.

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