How to File NIL GST Return in 5 Minutes – A Step-by-Step Guide for Small Business Owners

Oct 30, 2025

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Filing GST returns is mandatory for all registered taxpayers under the Goods and Services Tax (GST) regime in India, even if there are no transactions during a specific tax period. Many small business owners, freelancers, and inactive GST holders often need to file a NIL GST Return to stay compliant and avoid penalties. This article explains in detail how to file a NIL GST Return in just 5 minutes using the GST portal — quickly, correctly, and without any hassle.

What is a NIL GST Return?

A NIL GST Return is filed when a registered taxpayer has no outward supplies (sales), no inward supplies (purchases), and no tax liability during a particular tax period. In simple terms, if your business has not made any sale or purchase in a month or quarter, you are still required to file a NIL return to declare that no activity took place.

For example:
If your GSTIN is active but your business was inactive in the month of September 2025, you must still file a NIL GSTR-3B and NIL GSTR-1 for that month to stay compliant.

Why Filing NIL GST Return is Important

Even though there are no transactions, filing NIL returns is mandatory under GST law. Missing or delaying NIL returns can lead to penalties and suspension of your GSTIN.

Reason	Importance
Compliance	Mandatory even for inactive business periods.
Avoid Penalties	Late filing can attract fines of ₹50 per day.
Maintain Active GSTIN	Helps prevent suspension or cancellation.
Build Good Record	Keeps your business in good standing with the GST Department.
Required for Future Filings	Next month’s return cannot be filed without previous submission.

Types of NIL Returns under GST

Depending on your registration type and filing frequency, you may have to file one or more NIL returns.

Return Type	Purpose	Frequency	Eligible for NIL Return
GSTR-3B	Summary return showing outward and inward supplies	Monthly/Quarterly	Yes
GSTR-1	Details of outward supplies (sales)	Monthly/Quarterly	Yes
CMP-08	For taxpayers under composition scheme	Quarterly	Yes
GSTR-4	Annual return for composition taxpayers	Annually	Yes

Eligibility to File NIL GST Return

You can file a NIL return if all the following conditions are met during the tax period:

No outward supply (no sales invoice raised).
No inward supply (no purchase or expense under GST).
No tax liability under reverse charge.
No ITC (Input Tax Credit) to claim or utilize.
No late fee or interest pending from previous returns.

If any of these conditions are not true, you must file a regular return instead of a NIL return.

How to File NIL GST Return in 5 Minutes (Step-by-Step Process)

Step 1: Visit the GST Portal

Go to the official GST website and log in using your credentials — GSTIN, username, and password.

Step 2: Select the Return Filing Option

After logging in, navigate to:
Services → Returns → Returns Dashboard

Step 3: Choose the Tax Period

Select the appropriate Financial Year and Month/Quarter for which you want to file the return.

Step 4: Choose the Return Type

Click on Prepare Online under the return type (for example, GSTR-3B).

Step 5: Select “Yes” for NIL Return

The system will ask whether you want to file a NIL return. Choose “Yes” if you have no transactions to report.

Step 6: Preview and Submit

Check the prefilled details (it should show zeros in all fields). Click Submit and then File with DSC or EVC (based on your registration type).

Step 7: Confirmation

Once submitted, the portal will display a success message and a reference number (ARN) for your filed NIL return. You can download the acknowledgment for records.

Time-Saving Option: File NIL Return via SMS

If you meet the eligibility criteria, you can even file your NIL GSTR-3B and NIL GSTR-1 through a simple SMS without logging into the portal.
It is an efficient method for small taxpayers who have no activity during the period.

Return Type	Filing Method	Time Required
NIL GSTR-3B	Through SMS or Portal	3–5 minutes
NIL GSTR-1	Through SMS or Portal	3–5 minutes
CMP-08 NIL	Portal only	5–7 minutes

This is why NIL GST filing is often called the “5-minute return filing process.”

Common Mistakes to Avoid While Filing NIL GST Return

Mistake	Impact
Forgetting to file NIL return	Late fee and penalty charges apply.
Filing NIL when transactions exist	Non-compliance and future scrutiny.
Missing filing period	Return sequence breaks, blocking next filing.
Not downloading ARN	Lack of filing proof in case of audit.
Ignoring EVC/DSC authentication	Return submission remains incomplete.

Late Fees for Non-Filing of NIL GST Return

If you fail to file NIL returns within the due date, the following late fees apply under Section 47 of the CGST Act:

Type of Tax	Late Fee (per day)	Maximum Late Fee
Central GST (CGST)	₹25	₹500
State GST (SGST)	₹25	₹500
Total Late Fee	₹50 per day	₹1000 per return

Filing NIL returns on time ensures that these penalties never apply to your business.

Benefits of Filing NIL GST Return Regularly

Benefit	Explanation
Keeps GSTIN Active	Avoids suspension due to non-compliance.
Smooth Future Filings	Ensures next month’s return is accepted.
Builds Trust	Maintains a clean tax record.
Prevents Notices	Avoids unnecessary legal communication.
Easy for Loan or Tender	Banks and agencies prefer consistent GST compliance.

Tips for Quick NIL GST Filing

Always mark your tax period accurately before submission.
Use the SMS method for faster filing if eligible.
Keep a checklist for each filing type (GSTR-1, GSTR-3B, CMP-08).
File returns before the 20th of every month (for GSTR-3B).
Save all ARN acknowledgments for audit and compliance proof.

Example: Filing NIL Return for the Month of September 2025

Particulars	Details
Taxpayer Name	ABC Traders
GSTIN	09ABCDE1234F1Z2
Period	September 2025
Sales	Nil
Purchases	Nil
ITC Claimed	Nil
Tax Liability	Nil
Filing Date	19 October 2025
Status	Successfully Filed (NIL GSTR-3B)

This example illustrates how a taxpayer with no activity can stay fully compliant by filing a NIL return before the due date.

Conclusion

Filing a NIL GST Return is a simple yet essential compliance task that ensures your GST registration remains active and penalty-free. Whether you are an inactive business, a freelancer, or temporarily not trading, you can file NIL returns online in just 5 minutes using the GST portal or SMS method. Staying consistent with NIL filings builds your credibility, saves money on penalties, and keeps your GST compliance track clean for future growth.

Disclaimer:
The information provided in this article is for educational purposes only. GST laws and portal functionalities may change over time. Always verify the latest process and filing due dates from official government sources before filing your return.

About the author

I’m Himanshu Dhar, a dedicated MIS trainer proudly associated with I Turn Institute. My journey in the realm of data management and automation spans over 14 enriching years. My passion for this field extends to freelancing projects, where I bring real-world practicality into my teaching. My impact in education is marked by the success of over 25,000 students I’ve had the privilege of mentoring, hailing from diverse backgrounds. Beyond the classroom, I’ve had the honor of conducting corporate training sessions and seminars, catering to the unique needs of businesses. Let’s unlock your potential together in the realm of data analysis and automation.