Under the Goods and Services Tax (GST) Act, 2017, Filing Nil GSTR-1 Return On GST Common Portal gives details of all outward supplies of goods or services or both. If a taxpayer has entered into a transaction of the supply of goods or services. Then there should also be a person who would be the recipient of the supply of such goods or services.

Essentially, it is a return displaying all the transactions of sales of a business. All regular taxpayers who are registered under GST are required to file a NIL GSTR-1 return. Even if there was no activity or sales by the business entity during that month. It can be filed online on the GST Common Portal without any difficulty and in a short span of time.

However, most of the taxpayers who are mandated to file the NIL GSTR-1 return are often not clear with the process. Hence this leads them to a point of confusion. So, here in this article, we shall take a look at the procedure for filing a NIL GSTR-1 return online on the GST Common Portal through a simple process.

What Is NIL GSTR-1 Return?

GSTR-1 is essentially a detailed return filed monthly or quarterly. Where taxpayers need to upload each invoice for sales with the amount and taxes for the same. Thus, every supplier or consumer, whether it is B2B (business-to-business) or B2C (business-to-consumer).

All details must be mentioned in this GST return along with the person’s GSTIN (Goods and Services Tax Identification Number). That is a unique number for all taxpayers. Also, in case if you have no supplier or customer. Then you are still required to file a nil GSTR-1 return.

However, if you choose the quarterly GST return filing. Then it may be well for you because you only need to file your nil GSTR-1 return on a quarterly basis.

The reason for filing a NIL GSTR-1 return is to show the Income Tax Department that you fall below the taxable income criteria. Hence, therefore, did not pay taxes in the course of the year. If the taxpayer has a zero outward supply. Then a NIL GSTR-1 return is required to be filed.

It is, therefore, mandated that a NIL GSTR-1 return ought to be filed when the taxpayer falls within the criteria which are given as follows:

(a) The primary purpose of filing a NIL return is to show the ITR your proof of income.

(b) It is possible to claim a refund by filing a NIL GSTR-1 return.

Importance of Filing NIL GSTR-1 Return

All business owners whose total income is more than Rs. 2,50,000 are mandated to file their income tax returns under GSTR-1. Also, it is recommended that taxpayers are required to file their income tax returns. Despite the fact that it is not obligatory if the total income is not over Rs. 2,50,000.

This helps in keeping the Income Tax department updated concerning your monthly or quarterly income. The taxpayers who are GST registered are mandatorily required to report Nil returns under GSTR-1 despite the fact that there is no activity taken place in the business.

In case if the nil GSTR-1 return is not filed. Then the taxpayer would be accountable for paying a penalty of Rs.100 per day until the default continues.

Is A Supplier or Dealer with Zero Income Required To File Nil GSTR-1 Return?

A shipper or a provider desires to File GSTR 1. Whether he has no business improvement in multi-month i.E. No preparations in a month. An instance of no outward supplies, a vendor wishes to File GSTR 1. As well as You want to fill GSTR-2 and GSTR- three Respectively. Right Now GSTR-2 & GSTR-three is not required to report. However, you need to must report the NIL GSTR-1 & GSTR3B for the same.

Due Date For Filing Nil GSTR-1 Return

The due date for filing a Nil GSTR-1 return, say for the quarterly period of July to September 2019 is the subsequent month, which in this example is October 2019. Similarly, if you are filing it for a different quarterly period or on a monthly basis, for that matter, then the due date will be the following month.

Guided Steps on How to File NIL GSTR-1 Return Online on the GST Common Portal

A NIL GSTR-1 return can be filed by any taxpayer who is registered under GST. Also, this nil return can be filed by persons who did not have any sales transaction or any business activity in a particular month. The GSTR-1 return usually contains information such as details of credit notes issued, debit notes issued, advances received, amount of advance adjusted and documents summarised.

Given below is a step-by-step procedure for filing a Nil GSTR-1 return online on the GST Common Portal.

Steps:

1. On your computer, laptop, tablet, or smartphone, open a web browser and visit the GST Common Portal https://gst.gov.in/.

2. Next, click the Login button in the top right corner of the page and enter your valid credentials (i.e. username and password) in order to access your GST Dashboard.

3. Now, when you have successfully signed in to your Dashboard, click the Return Dashboard button. You will be redirected to the Returns page.

4. On the File Returns page, select the appropriate month and year from the Return Filing Period drop-down list-box and click the Search button.

5. Once the period that you have selected for filing your return is verified, click the Prepare Online – Prepare Offline button under Details of outward supplies of goods or services GSTR1. The due date for filing the return will also be displayed just above the Prepare Online – Prepare Offline button.

Details of Aggregate Turnover:

Note: Provide details of aggregate turnover for the appropriate financial year. Under GSTR 1 – Other Details, select the B2C (Small) tile and click the Include Details button.

6. Choose POS beginning from the drop-down list box, then enter 0.00 in distinctive fields and click the Save button. Once saved, you will see the points of interest entered by you in a table format, Now, click the Back button and click on the Generate GSTR1 Summary button. Select the checkbox and click the Preview button.

7. You will be shown a summary of your GSTR 1 return on the screen. Here, you are required to make certain that all the appropriate sections are to be selected as NIL.

8. Once the information provided by you are verified, tick the self-declaration checkbox which mentions that you acknowledge the details provided in the filing are correct. Now, click the Submit button.

9. A message will be displayed on your screen. In the confirmation window, click the Proceed button to accept the filing of GSTR-1.C

Clicking on The Proceed Button

Note: Upon clicking on the Proceed button, the taxpayer will no longer be able to modify any details. So, make sure that the GSTR-1 return contains the correct details.

10. After the GSTR-1 return is submitted, the taxpayer will have to digitally sign the return using a category 2 DSC (Digital Signature Certificate) or EVC (Electronic Verification Code) verification in order to complete the nil GSTR1 return filing.

Note: You can file your nil return under GST either by using DSC or EVC. In view of the selection, click on File GSTR1 with DSC or File GSTR1 with EVC and record your Nil GSTR-1.

After the return has been documented, an acknowledgment will be displayed on your screen, stating that the Nil GSTR-1 return has been successfully recorded.

So, we have understood the step-by-step procedure of filing a Nil GSTR-1 return on the GST Common Portal and without any difficulty.