Step by Step Process of Filing NIL GST Return

Quick and Easy Steps to File Nil GSTR 1 Return through the GST Portal

Online Legal India LogoBy Online Legal India Published On 03 Aug 2022 Updated On 06 Jan 2023 Category GST

Every taxpayer is obliged to file the comprehensive monthly return known as GSTR-1. By uploading invoices from commercial activities, this return includes data on sales or outward supply. Each supplier or customer is identified in this GST return with their Goods and Service Tax Identification Number (GSTIN), whether they are Business to Business (B2B) or Business Client (B2C) relationships. If neither a Supplier nor a Customer exists, you must submit a Nil GST return. All ordinary taxpayers with GST registration are required to submit an online GST return, even if there was no business activity for the entire month.

What is GSTR 1 NIL Return?

A company's outgoing supplies are disclosed on the GSTR 1 monthly return. If a transaction for the delivery of goods has been made, the recipient of that supply must be real. It basically functions as a return that details all of a business's sales transactions. Even if there was no economic activity during the month, all regular taxpayers with GST registration are required to submit a Nil return in GST. A NIL GST return can be submitted online in a short amount of time.

To show the Income Tax Return department that you did not pay any taxes during the year because you did not fulfill the taxable income requirement, you must file a NIL return.

The taxpayer must file a GSTR 1 NIL return if they meet the following conditions:

The taxpayer must have a valid GSTIN and be registered as a regular taxpayer, a casual taxpayer, or an SEZ developer.

On the GST Portal, the taxpayer must have selected either monthly or quarterly filing frequency.

Why filing a GSTR1 NIL Return is important?

A GSTR 1 income tax return must be filed by business owners who make more than Rs. 2,50,000 annually. Even if your income is less than Rs. 2,50,000, filing a tax return is still advised. The tax division is consequently informed of your monthly or quarterly revenue.

Taxpayers who have registered for GST are required to file nil returns under GSTR 1 even if the company has no business activity. The fine for failing to file a GST return is Rs 100 each day.

The main reason NIL returns are filed is to use the ITR as income documentation.
It is possible to receive a reimbursement for GSTR 1 NIL returns.

How to File GSTR1 NIL Return?

Any GST registered individual, even those who did not engage in any sales transactions or activities during a given month, must submit GSTR 1. The GSTR1 report also includes details on the credit notes issued, the advances received, the debit notes issued, the changed advance amount, and the documents summarised. The steps for submitting a NIL return using GSTR1 are described below.

STEP 1: Log in to GST Account

Go to the GST registration portal, log in to your account by entering the valid credentials. Click on “Return Dashboard” on the dashboard page.

STEP 2: Prepare the GSTR1 Return

When you select "Return Dashboard," a window will appear. Specify the filing window and select "Prepare Online."

STEP 3: Validate auto-populated GSTR1 Return

The taxpayer will see a summary of the GSTR1 return when they select "Prepare Online." Ensure that every field in the GSTR1 return is zero or nil.

STEP 4: Submit GSTR1 Return

After you've verified all the information, check the box next to "I confirm that the information in the filing is correct" and press "Submit."

STEP 5: Accept GSTR1 filing

Click the "Continue" button in the confirmation window to accept the GSTR1 filing. The taxpayer won't be able to change any of the entered information after they choose to continue. Thus, make sure the GSTR1 return is accurate and complete.

STEP 6: Digital Signature on GSTR1 filing

The taxpayer must digitally sign the GSTR1 return using EVC verification or a digital signature of class 2 after submitting the final GSTR1 return in order to complete the NIL GSTR1 return filing.


Every taxpayer must submit an online GST return if they have no sales or outgoing supplies. By using this return form, the taxpayer can avoid paying any penalties. We trust that after reading this post, you have a better understanding of why completing a GST Nil report is necessary and how to do so under GSTR 1.

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