Filing a Nil GST Return in India: 2026 Step-by-Step

The nil return obligation catches many small business owners off guard. When your shop is closed for a month, or your trading company has no turnover during the off-season, or you have just registered for GST but have not yet started operations, the instinct is to do nothing and file next month when activity resumes. That instinct is wrong under GST law.

GST is a return-filing regime, not merely a tax-payment regime. The obligation to file exists independently of the obligation to pay tax. A nil return is how you formally tell the GST system that you had no transactions in a given period. Missing it blocks your portal, exposes you to late fees, and breaks the Input Tax Credit chain for your buyers.

Why Zero Transactions Still Require a Return

The obligation to file returns under GST arises from Section 39 1) (GSTR ThreeB) and Section 37 1) (GSTR One) of the CGST Act 2017. Neither section contains an exemption for periods of zero transactions. Registration creates the obligation; only cancellation removes it.

There is a structural reason for this beyond bureaucratic formality. Your buyers reconcile ITC claims using GSTR TwoB, which is auto-populated from your GSTR One filings. If you do not file GSTR One for a month (even nil), the GSTR TwoB for your buyers shows nothing from you, and any invoice you issued to them during that period becomes unclaimed credit on their side until you file. This cascades into notices for your buyers when the auditor spots GSTR TwoB mismatches.

Nil returns also keep your registration active and your compliance rating (GSTN generates compliance scores internally) in good standing, which affects your buyers' willingness to transact with you once GST Council compliance ratings become more visible.

Nil GSTR ThreeB: Monthly and Quarterly Filing

GSTR ThreeB is the monthly (or quarterly for QRMP) self-declaration of tax liability and ITC.

Monthly Filers

Due date: 20th of the following month.

To file nil GSTR ThreeB on the GST portal:

1. Log in at gstin.gov.in with your GSTIN and password.
2. Go to Returns > File Returns > Select Financial Year and Tax Period.
3. In the GSTR ThreeB tile, click "Prepare Online."
4. All fields (outward supplies, ITC, tax payable) remain zero. Do not enter anything.
5. Click "File NIL GSTR ThreeB" : the portal shows a one-click nil filing option if all entries are zero.
6. Verify and submit using EVC (electronic verification code) or DSC.

QRMP Quarterly Filers

Businesses with annual turnover up to Rs 5 crore in the preceding FY can opt for the Quarterly Return Monthly Payment (QRMP) scheme. QRMP filers:

• File GSTR ThreeB quarterly (not monthly).
• Due dates: 22nd of the month after quarter end for states in Category 1 (large states), 24th for Category 2 states.

For nil quarters, the quarterly GSTR ThreeB is filed as nil with all fields zero. Monthly PMT-06 challan payments are not required if the quarter genuinely has no tax liability.

Filing Nil GSTR ThreeB via SMS

The fastest method for genuine nil periods:

Send SMS to 14409 from your GST-registered mobile number:

NIL 3B [GSTIN] [Return Period in MMYYYY]

Example: NIL 3B 27AAAAA0000A1Z5 052026 (for May 2026)

The GSTN system responds with a 6-digit OTP. Reply with:

CNF 3B [OTP]

The return is filed instantly. You receive a confirmation SMS. No portal login required.

Condition: SMS filing is only available when the return is genuinely nil. If you have even one outward supply, one ITC entry, or one reverse charge transaction to report, SMS filing is not available and you must use the portal.

Nil GSTR One: Monthly and Quarterly Filing

GSTR One reports outward supplies (sales). For nil months, you file with no invoices, no debit notes, no credit notes, and no exports.

Monthly Filers

Due date: 11th of the following month.

Portal filing process:

1. Go to Returns > File Returns > GSTR One.
2. All tables (B2B invoices, B2C invoices, exports, credit notes, debit notes) remain empty.
3. The portal shows a "File Nil GSTR One" prompt when all tables are blank.
4. File with EVC or DSC.

QRMP Quarterly Filers

Due date: 13th of the month after the quarter ends (April 13 for Q4, July 13 for Q1, etc.).

Filing Nil GSTR One via SMS

Send SMS to 14409 from your registered mobile:

NIL R1 [GSTIN] [Return Period in MMYYYY]

Example: NIL R1 27AAAAA0000A1Z5 052026

Confirm the OTP received in the reply:

CNF R1 [OTP]

Done. The system handles nil GSTR One filed.

One important distinction: QRMP filers can upload invoices month-by-month using the Invoice Furnishing Facility (IFF), but they do not file GSTR One monthly. If a QRMP filer has zero invoices in a given month, they simply do not upload anything in IFF for that month. There is no nil IFF filing requirement. The nil GSTR One filing only applies at the end of the quarter if the quarter itself had no outward supplies.

Nil CMP-08 for Composition Dealers

Composition scheme taxpayers (turnover up to Rs 1.5 crore for goods traders; different limits for specific service businesses) do not file GSTR One or GSTR ThreeB. Instead, they file:

• CMP-08: A quarterly statement of tax payable on outward supplies.
• GSTR-4: An annual return (filed by April 30 of the following FY).

CMP-08 due date: 18th of the month after the quarter end.

When a composition dealer has zero taxable outward supplies in a quarter:

1. Go to Services > Returns > Quarterly Return > CMP-08.
2. Select the relevant quarter.
3. All fields show zero. Enter zero in the self-assessed tax payable field.
4. File with EVC or DSC.

There is no SMS option for nil CMP-08. Portal filing is required.

CMP-08 even with Rs 0 tax: Some composition dealers have supplies fully within the exempted category for a particular quarter. Even if no tax is payable, filing nil CMP-08 remains mandatory. Omitting it leads to late fees and eventually blocks the annual GSTR-4 filing.

Late Fees for Missing Nil Returns

Under Section 47 1) of the CGST Act, late filing of returns (including nil returns) attracts a late fee of Rs 20 per day (Rs 10 under CGST + Rs 10 under SGST).

The government has capped this fee specifically for nil returns:

Why the Rs 20/day matters before hitting the cap: The cap means a nil return filed 25 or more days late costs Rs 500. But a return filed 10 days late still costs Rs 200. For a business with 12 monthly returns per year, even occasional delays add up meaningfully.

The blocking effect: Under GSTN rules, a taxpayer who has not filed one return period's GSTR ThreeB cannot file the subsequent period's GSTR ThreeB. The portal enforces sequential filing. This means one missed nil return in April blocks May filing, which in turn blocks June filing. By the time you attempt to catch up, you face late fees for all missed periods plus the practical difficulty of filing returns in sequence.

What Happens if You Stop Filing Nil Returns for 6 Months

Under Section 29 2)(c) of the CGST Act, a GST registration can be cancelled by the proper officer if a taxpayer fails to furnish returns for six consecutive months. This is not automatic : the officer issues a Show Cause Notice (SCN) first : but it does happen, especially in cases where the registration was abandoned and the owner never formally cancelled it.

Cancelled-without-application registrations have been a persistent GST administration issue. The correct course, if a business genuinely has no intention to conduct taxable transactions, is to apply for voluntary cancellation under Section 29 1) before missing returns triggers the officer's action.

Until the cancellation application is filed and approved, nil return filing obligations continue.

Downstream Impact on Your Buyers

Every supplier's GSTR One creates ITC entitlement for their buyers via GSTR TwoB. When you miss your GSTR One (even nil), it does not affect current buyers since a nil GSTR One has no invoices. But when you miss a non-nil GSTR One in a future period while current periods are unfiled nil, the portal locks out all returns.

From a buyer's perspective: if they purchased from you in May and you do not file GSTR One for May, their GSTR TwoB for May shows no credit from you. They either defer the ITC or risk claiming it without GSTR TwoB support, both of which have downstream compliance implications under Section 16 2)(aa).

Consistent nil filing, even when tedious, keeps your registration in good standing and protects your buyers' ITC claims.

Let Tax Garden Handle Your GST Filings

Whether you have zero transactions or high-volume monthly filings, Tax Garden manages your GSTR One, GSTR ThreeB, and annual GSTR Nine, ensuring every nil period is filed on time and every active period is reconciled against GSTR TwoB before submission. See our GST compliance plans or talk to our team.