How to File Nil GST Return Online: Rules, Eligibility, and Process

GST return filing remains mandatory even when a business records no transactions in a tax period. Zero activity does not remove the obligation to file returns under GST law. As long as a GST registration is active, the applicable returns must be filed for each reporting period.

This is where a Nil GST return becomes relevant. It allows businesses to report zero activity while staying compliant. Filing Nil returns on time helps avoid late fees, return blockage, and unnecessary notices, especially for new registrations, inactive businesses, or temporary operational pauses.

What is a Nil GST Return?

A Nil GST return is filed when a registered business has no reportable activity during a tax period. It tells the GST department that the registration is active, but there were no transactions to declare for that month or quarter. Filing a Nil return keeps the compliance record clean and avoids late fees, even when the business is temporarily inactive.

Who is Eligible to File a Nil GST Return?

A GST-registered business can file a Nil return when there is nothing to report for a specific tax period. This applies to regular taxpayers, composition dealers (for their relevant returns), and even newly registered businesses with no activity.

In simple terms, a return can be filed as Nil when, for that period:

• No outward supply of goods or services
• No inward supplies liable to reverse charge
• No GST payable for the period
• No input tax credit claimed

If all these conditions apply and the GST registration is still active, filing a Nil GST return is mandatory to stay compliant.

Which GST Returns Can Be Filed as Nil?

Some GST returns still need to be filed even when there is no business activity. In such cases, they are filed as Nil to confirm that there were no transactions for the period.

The following returns can be filed as Nil when applicable:

• GSTR-1 – when there are no outward supplies during the month or quarter
• GSTR-3B – when there is no tax liability and no input tax credit to report

Each return works independently. Even if monthly returns are Nil, the annual return must still be reviewed and filed if it is applicable for that year.

GSTR-1 covers outward supplies, but GSTR-3B is where the overall GST position is reported. It is the return used to declare tax liability and input tax credit, even when there is no activity. Being clear about its filing rules, due dates, and late fees helps avoid compliance gaps. You can read more in our guide on what is GSTR-3B.

How to File Nil GST Return Online: Step-by-Step Process

Below are the practical GST nil return filing steps followed on the GST portal.

Step-by-Step Process to File Nil GSTR-1

1. Log in to the GST Portal

• Visit www.gst.gov.in
• Log in using your GSTIN and password
• Navigate to Services → Returns → Returns Dashboard

2. Select the Return Period

• On the File Returns page, select the Financial Year
• Choose the relevant Month or Quarter
• Click SEARCH

3. Open the GSTR-1 Form

• In the GSTR-1 section, click PREPARE ONLINE
• The Details of outward supplies of goods or services page will open

4. Select “File Nil GSTR-1”

• Tick the checkbox File Nil GSTR-1
• If any draft or saved data exists, delete it or click RESET to clear all entries before proceeding

5. Proceed to File

• After selecting File Nil GSTR-1, click FILE STATEMENT
• If required, download E-Invoice details in Excel for record-keeping

6. Accept Declaration

• On the Returns Filing for GSTR-1 page, tick the Declaration checkbox
• Select the Authorized Signatory from the drop-down list

7. Authenticate and Submit

Choose one of the following methods:

A) File with DSC

• Click FILE WITH DSC
• Click PROCEED
• Select the Digital Signature Certificate and click SIGN

B) File with EVC (Electronic Verification Code)

• Click FILE WITH EVC
• Enter the OTP received on the registered mobile number/email
• Click VERIFY

8. Confirmation and Download

• A success message along with an ARN number will be displayed
• The File Nil GSTR-1 option will be disabled, confirming submission
• Click DOWNLOAD FILED (PDF) to save a copy for your records

These steps explain the usual process for filing a Nil GSTR-1 when there are no outward supplies. In some situations, the return period or filing option may need closer attention. For a more detailed, step-by-step explanation, you can refer to our guide on how to file GSTR 1 nil return.

Step-by-Step Process to File Nil GSTR-3B

1. Log in and Access the Return

• Visit the GST portal and log in using your GSTIN and password
• Navigate to Services → Returns → Returns Dashboard
• Select the relevant Financial Year and Month, then click SEARCH
• Under the GSTR-3B section, click PREPARE ONLINE

2. Select Nil Return Option

• On the initial screen, locate the option asking whether you want to file a Nil return
• Select Yes and click NEXT
• Once this option is selected, all other sections of the return will be automatically disabled, as no data needs to be entered
• The Nil option is available only if there are no transactions, no auto-populated details, and no tax liability for the selected period

3. Preview the Draft Return

• Click PREVIEW DRAFT GSTR-3B to view the summary
• The preview will display all values as zero
• Review the draft to ensure accuracy before submission

4. Submit the Return

• Tick the Declaration checkbox
• Select the Authorized Signatory from the drop-down list

Choose one of the following filing methods:

A) File with DSC

• Click FILE GSTR-3B WITH DSC → PROCEED → Select the Digital Signature Certificate → Click SIGN.

B) File with EVC

• Click FILE GSTR-3B WITH EVC → Enter the OTP received on the registered mobile number or email → Click VERIFY.

After successful authentication, the return will be filed.

5. Download Filed Return

• A confirmation message will appear once the return is successfully submitted
• Click DOWNLOAD FILED GSTR-3B to save the PDF copy for your records
• The return status will be updated to Filed on the dashboard

Due Dates for Nil GST Return Filing

Nil GST returns follow the same timelines as regular GST returns. Having no business activity does not extend or change the due date. Filing on time is important to avoid late fees and return blockage.

Below is a clear view of the applicable due dates:

GST Return	Who Should File	Filing Frequency	Due Date
GSTR-1 (Monthly)	Regular taxpayers with monthly filing	Monthly	11th of the following month
GSTR-1 (Quarterly – QRMP)	Taxpayers under QRMP scheme	Quarterly	13th of the month after the quarter
GSTR-3B	Regular taxpayers	Monthly	20th of the following month

Late Fees for Not Filing Nil Returns

Nil GST returns are treated the same as regular returns when it comes to late fees. If a Nil return is not filed within the due date, late fees start adding up automatically until the return is filed.

GST Return	Late Fee per Day	Maximum Late Fee
GSTR-1 (Nil)	₹20 per day (₹10 CGST + ₹10 SGST)	₹500
GSTR-3B (Nil)	₹20 per day (₹10 CGST + ₹10 SGST)	₹500

Common Mistakes to Avoid While Filing Nil GST Returns

• Assuming Nil return is optional
• Missing one return while filing another
• Forgetting to file during inactive months
• Waiting until returns get blocked

Understanding how to file GST return nil online helps avoid these errors.

Final Thoughts

Nil GST return filing may seem unnecessary when there is no business activity, but it is still a mandatory compliance requirement. Filing returns on time helps maintain an active GST registration and prevents late fees, filing restrictions, and compliance issues. If you want to file GST return without handling portal steps or tracking deadlines each period, structured support can help. LegalWiz assists businesses with timely and accurate GST return filing, ensuring compliance remains in place even during inactive periods.