GST Nil Return Filing Charges: Due Date and Late Fees Explained

Filing GST returns is a mandatory compliance requirement for businesses registered under the Goods and Services Tax (GST) regime in India. Even if there are no transactions in a particular tax period, registered taxpayers must file a Nil Return to avoid penalties and maintain compliance.

This article provides detailed insights into GST Nil Return filing, applicable charges, late fees, and penalties to help businesses understand the importance of timely filing and compliance.

What is a GST Nil Return?

A GST Nil Return is filed when a registered business has no sales, purchases, or tax liability for a given tax period but is still required to submit the return to the government.

✔ Mandatory for all registered taxpayers – Even if there are no transactions.
✔ Avoid penalties & fines – Non-filing attracts late fees and interest.
✔ Ensures active GST registration – Prevents GSTIN suspension or cancellation.

Who Needs to File a GST Nil Return?

✔ Regular Taxpayers – Businesses registered under GST Regular Scheme with no taxable transactions.
✔ Composition Dealers – If no supplies or purchases were made, Nil GSTR-4 must be filed.
✔ Casual Taxable Persons – If no transactions occurred during the registration period.
✔ E-commerce Operators – If no sales were made during the tax period.
✔ Input Service Distributors (ISD) – If no ITC is distributed.
✔ Non-Resident Taxpayers – If registered under GST but had no business transactions.

GST Nil Return Filing Process

A GST Nil Return can be filed through the GST portal or via SMS-based Nil Return filing.

Method 1: Filing Nil Return via GST Portal

Step 1: Visit the GST Portal (www.gst.gov.in).
Step 2: Log in using GSTIN, username, and password.
Step 3: Navigate to ‘Returns Dashboard’ and select the appropriate return form (GSTR-1, GSTR-3B, etc.).
Step 4: Click on ‘File Nil Return’ (if no transactions exist).
Step 5: Verify and submit using EVC or DSC (Digital Signature Certificate).

Method 2: Filing Nil Return via SMS

For taxpayers with no transactions, Nil GSTR-1 and GSTR-3B can be filed via SMS.

✔ Format: Send NIL<space>Return Type<space>GSTIN<space>Tax Period to 14409.
✔ Example: NIL GSTR3B 07AXXXXXXXXXXQ1Z 062023.
✔ A confirmation message will be sent, and the return is filed upon verification.

Due Dates for GST Nil Return Filing

Timely filing of Nil GST returns is crucial to avoid penalties. Below are the due dates for different GST returns:

GST Return Type	Frequency	Due Date
GSTR-1 (Sales Return)	Monthly	11th of the following month
GSTR-3B (Tax Summary)	Monthly	20th of the following month
GSTR-4 (Composition Dealers)	Quarterly	18th of the month following the quarter
GSTR-9 (Annual Return)	Annually	31st December of the next financial year
GSTR-9C (Audit Report)	Annually	31st December of the next financial year

✔ Late filing beyond these dates will attract late fees and penalties.

Late Fees & Penalties for Non-Filing of Nil Returns

Even if there are no transactions, failing to file a Nil GST Return on time attracts late fees under CGST and SGST laws.

1. Late Fees for Nil GSTR-3B & GSTR-1

Return Type	Late Fee Per Day	Maximum Late Fee
Nil GSTR-3B	₹10 (₹5 CGST + ₹5 SGST)	₹500 (₹250 CGST + ₹250 SGST)
Nil GSTR-1	₹10 (₹5 CGST + ₹5 SGST)	₹500 (₹250 CGST + ₹250 SGST)
GSTR-4 (Composition Scheme)	₹10 (₹5 CGST + ₹5 SGST)	₹500 (₹250 CGST + ₹250 SGST)

2. Interest on Late Filing

If a business has tax liability but does not file returns on time, an 18% interest per annum is charged on the outstanding tax amount.

✔ Formula: Interest = (Outstanding Tax Amount × 18% × Number of Days) ÷ 365.
✔ Example: If ₹10,000 tax is due and delayed for 30 days, interest = ₹147.

Consequences of Non-Filing of GST Nil Return

❌ Penalty Accumulation – Late fees increase over time, affecting finances.
❌ Suspension of GSTIN – Continuous non-filing may lead to GST registration suspension.
❌ Ineligibility for Input Tax Credit (ITC) – Businesses failing to file GST returns on time cannot claim ITC on purchases.
❌ Government Notices & Legal Action – The GST department can issue show cause notices and initiate proceedings.

How to Avoid Late Fees & Penalties?

✔ File GST Nil Return Before Due Date – Ensure timely submission even when there are no transactions.
✔ Use SMS-Based Nil Return Filing – Quick and easy compliance method.
✔ Maintain a GST Compliance Calendar – Set reminders for deadlines.
✔ Seek Professional Help – Engage a GST consultant to avoid errors and penalties.

Conclusion

GST Nil Return Filing Charges is a mandatory requirement to ensure compliance and avoid unnecessary penalties. Even if a business has zero transactions, timely filing prevents late fees, interest, and legal complications. By following the correct filing procedure and adhering to due dates, businesses can maintain GST registration, stay compliant, and avoid unnecessary penalties.