Filing Nil Form GSTR-1 and GSTR-3B Returns via SMS
GST compliance is mandatory for all registered businesses, even if they have no transactions during a particular tax period. In such cases, businesses must file Nil GST Returns to avoid penalties and maintain active GST registration.
To simplify the compliance process, the Goods and Services Tax Network (GSTN) allows taxpayers to file Nil GSTR-1 and GSTR-3B returns via SMS. This eliminates the need for logging into the GST portal and makes the process quicker and more convenient.
In this guide, we will explain how to file Nil GST Return through SMS, eligibility criteria, due dates, late fees, and common mistakes to avoid.
What is a Nil GST Return?
A Nil GST Return is filed when a registered taxpayer has no sales, purchases, or tax liability during a particular tax period but still needs to file a return for compliance.
✔ Mandatory for active GSTIN holders – Even if there are no transactions.
✔ Prevents penalties and notices from the GST department.
✔ Ensures GSTIN remains active – Non-filing may lead to GST registration suspension.
Who Can File Nil GST Returns via SMS?
You can file Nil GSTR-1 or GSTR-3B via SMS if:
- You are a regular taxpayer (not under the composition scheme).
- You have no outward supplies (sales), purchases, tax liability, or ITC claims.
- You have filed previous GST returns and are not in default.
- You do not need to pay any tax for the given period.
If any transactions exist during the tax period, you must file the return via the GST portal instead of SMS.
Step-by-Step Guide to File Nil GSTR-1 via SMS
Nil GSTR-1 is filed when there are no outward supplies (sales) for the tax period.
Step 1: Format the SMS
✔ Send the following SMS from your registered mobile number to 14409:
NIL GSTR1 GSTIN TaxPeriod✔ Example for April 2023 GSTR-1 filing:
NIL GSTR1 07AACJ1234B1Z5 042023✔ 07AACJ1234B1Z5 is the GSTIN, and 042023 represents April 2023.
Step 2: Receive Confirmation Code
✔ You will receive a 6-digit verification code (OTP) via SMS.
Step 3: Confirm Filing
✔ Send another SMS to 14409 with the verification code:
CNF GSTR1 VerificationCode✔ Example:
CNF GSTR1 123456✔ Once submitted, you will receive a confirmation message, and the return is considered filed.
✔ Due Date for GSTR-1: 11th of the following month (monthly) / 13th of the following quarter (QRMP scheme).
Step-by-Step Guide how to File Nil GST Return Through SMS
Nil GSTR-3B is filed when there are no outward supplies, purchases, ITC claims, or tax liabilities for the period.
Step 1: Format the SMS
✔ Send the following SMS to 14409:
NIL GSTR3B GSTIN TaxPeriod✔ Example for April 2023 GSTR-3B filing:
NIL GSTR3B 07AACJ1234B1Z5 042023✔ 07AACJ1234B1Z5 is the GSTIN, and 042023 represents April 2023.
Step 2: Receive Confirmation Code
✔ A 6-digit OTP will be sent to your registered mobile number.
Step 3: Confirm Filing
✔ Send another SMS to 14409 with the verification code:
CNF GSTR3B VerificationCode✔ Example:
CNF GSTR3B 123456✔ Upon confirmation, you will receive a success message, and your Nil GSTR-3B return is filed.
✔ Due Date for GSTR-3B: 20th of the following month (monthly) / 22nd or 24th of the following quarter (QRMP scheme).
Late Fees & Penalties for Non-Filing of Nil GST Returns
Even if a business has 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-1 & GSTR-3B
| 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) |
2. Interest on Late Payment of Tax (If Any)
✔ 18% per annum on outstanding tax liability.
✔ Interest is calculated from the due date until the tax is paid.
Common Mistakes to Avoid While Filing Nil GST Returns via SMS
❌ Using an incorrect format – Ensure the correct format for SMS submission.
❌ Sending SMS from an unregistered mobile number – Only the mobile number linked to the GST portal can be used.
❌ Not confirming with OTP – Without OTP confirmation, the return is not considered filed.
❌ Filing Nil Return when transactions exist – If there are sales or purchases, file through the GST portal instead.
Advantages of Filing Nil GST Returns via SMS
✔ Quick and hassle-free process – No need to log in to the GST portal.
✔ Prevents penalties and compliance issues – Avoids late fees and notices.
✔ Convenient for small businesses and startups – Ideal for businesses with minimal transactions.
✔ Maintains active GST registration – Prevents GSTIN suspension due to non-filing.
Conclusion
Filing Nil GST Returns via SMS is a convenient and time-saving method for businesses with zero transactions during a tax period. It ensures GST compliance, prevents penalties, and maintains active registration. Taxpayers should follow the correct SMS format, use registered mobile numbers, and confirm submissions via OTP to complete the process successfully.
Need Help with GST Return Filing?
Contact CharteredHelp today! 📞 Call: 9870525656
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GST on Gym Services and Equipment: A Comprehensive Guide for Gym Owners
Starting a gym is an exciting business venture, but it also comes with regulatory and financial responsibilities. One of the critical aspects to consider is the Goods and Services Tax (GST) and its impact on gym services and equipment. Understanding GST implications can help gym owners manage their tax liabilities effectively and ensure compliance with Indian tax laws.
In this article, we will provide a detailed overview of GST on gym services, membership fees, personal training, and gym equipment. If you are planning to set up a gym, this guide will help you understand how GST applies to your business.
GST on Gym Services
Gym services are considered a part of the fitness and wellness industry, and they attract GST. Below is a breakdown of how GST applies to various gym-related services:
1. GST on Gym Membership Fees
- Gym membership fees are subject to 18% GST under the category of “fitness services”.
- Whether you offer monthly, quarterly, or yearly membership plans, GST must be charged on the total invoice amount.
2. GST on Personal Training Sessions
- If your gym provides personal training or coaching, it is also taxable at 18% GST.
- This applies whether the training is one-on-one, group-based, or virtual sessions.
- If a freelance trainer is providing services directly to customers, they must also charge GST if their turnover exceeds ₹20 lakh (₹10 lakh for special category states).
3. GST on Online Fitness Programs and Virtual Classes
- Many gyms now offer online fitness programs or virtual training.
- These digital fitness services also attract 18% GST, regardless of whether they are pre-recorded or live sessions.
4. GST on Spa, Wellness, and Other Add-on Services
- If your gym offers spa, massage, or wellness services, these too will be taxed at 18% GST.
- Ayurveda or naturopathy wellness services may be exempt from GST if registered under a recognized medical system.
GST on Gym Equipment and Setup Costs
A significant part of opening a gym is investing in equipment. Gym owners must be aware of GST rates applicable to gym-related products:
1. GST on Gym Equipment
Gym equipment falls under different tax categories based on their use:
- Treadmills, Dumbbells, and Exercise Machines – 18% GST
- Weightlifting Equipment and Benches – 18% GST
- Yoga Mats, Resistance Bands, and Small Accessories – 12% GST
2. GST on Infrastructure and Construction Costs
- If you are leasing or renting a commercial space for your gym, 18% GST applies to rental payments.
- Interior design, flooring, and renovation work also attract 18% GST.
- If purchasing land or property, GST is not applicable on land, but 18% GST applies to under-construction properties.
3. GST on Supplements and Nutrition Products
- Protein supplements, energy drinks, and dietary supplements attract 12% or 18% GST, depending on their classification.
- Ayurvedic or herbal supplements may fall under 5% or 12% GST, depending on their registration and certification under food and drug regulations.
GST Registration for Gym Business
If you are starting a gym, GST registration is mandatory if your turnover exceeds ₹20 lakh per annum (₹10 lakh for special category states). Even if your earnings are below the threshold, registering for GST can be beneficial for input tax credit claims.
Documents Required for GST Registration:
- PAN Card of the Business/Owner
- Aadhaar Card of the Proprietor
- Proof of Business Address
- Bank Account Details
- Rental Agreement (if applicable)
How to File GST Returns for a Gym?
Gym businesses must file monthly or quarterly GST returns (GSTR-1, GSTR-3B, and GSTR-9) based on their turnover.
Benefits of GST Compliance for Gym Owners
- Input Tax Credit (ITC) – You can claim GST paid on gym equipment, rental, and maintenance costs.
- Legal Compliance – Avoid penalties, fines, and unnecessary legal troubles by timely GST filing.
- Business Growth – GST registration improves credibility and allows seamless B2B transactions.
- Transparency – Proper GST invoicing enhances customer trust and business transparency.
Conclusion
Understanding GST on gym services and equipment is crucial for financial planning and compliance. As a gym owner, you must ensure that your memberships, training fees, and purchases comply with GST regulations to avoid penalties.
Need Help with GST Registration and Compliance?
Contact CharteredHelp today! 📞 Call: 9870525656
Ensure a smooth start to your gym business with expert GST guidance. Get in touch now!
