Nil GSTR-3B returns are filed in the same manner as regular GSTR-3B returns. Regardless of having no outward or inward supplies, which results in no tax liability for a specific month, it is compulsory for taxpayers to file a nil GSTR-3B via the GST portal for that period. This article provides a comprehensive overview of what is a Nil GSTR-3B, the associated late fee for GSTR 3b nil return, and the steps required to file a Nil GSTR-3B return effectively.
Eligibility Criteria for Filing Nil Form GSTR-3B
A Nil Form GSTR-3B can be filed for a tax period if the following conditions are met:
- There have been no outward supplies made.
- There is no reverse charge liability.
- There is no intention to claim any input tax credit.
- There are no liabilities for the specific tax period.
However, if any of the following situations apply, the GSTR-3B return for that tax period cannot be filed as nil: A Nil GSTR-3B return cannot be filed for a tax period if any of the following conditions are met:
- Supply of Goods or Services: There were any goods or services supplied during the tax period, including nil-rated, exempt, and non-GST supplies. Additionally, if any supplies liable to reverse charge or other exempt, nil-rated, and non-GST inward supplies were received, a Nil return cannot be filed.
- Inter-state Supplies: Any inter-state supplies were made to unregistered persons, composition taxable persons, or UIN holders.
- Reversal of Input Tax Credit (ITC): There is no intent to reverse input tax credit.
- Outstanding Interests or Late Fees: There are any outstanding interests or late fees that need to be paid, including those carried forward from previous periods.
- Tax Liability from GST TRAN-1: There is no tax liability arising from Form GST TRAN-1.
- Other Liabilities: There are other liabilities that need to be settled while filing the return.
Here is a step-by-step guide to filing GSTR-3B on GST Portal
Step 1 – Login to GST Portal and on the homepage, you can find the return filing status for the last five tax periods.
Step 2 – Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’.
Step 3 – This displays the ‘File Returns’ page. Select the ‘Financial Year’, ‘Quarter’ & ‘Return Filing Period -Month or Quarter’ for which you want to file the return from the drop-down list. Click the ‘SEARCH’ button.
Step 4 – On ‘Monthly Return GSTR-3B’ tile, click the ‘PREPARE ONLINE’ button..
Step 5 – Answer a list of questions and click on ‘NEXT’.
If details in GSTR-3B return are auto-populated from Forms GSTR-1 or GSTR-2B, then the questionnaire page displays the first question alone. This page gives the details of tables 3 and 4 as auto-populated from form GSTR-1 into form GSTR-3B. Thereafter, click on the “CLOSE” button to proceed.
Step 6 – Enter values in each tile displayed as may be applicable. You need to enter totals under each head. Fill in interest and late fees, if applicable.
However, you can verify GSTR-3B’s auto-generated details in the tab “SYSTEM GENERATED GSTR-3B”. Click on that button to download and view system-computed details from forms GSTR-1 & GSTR-2B (monthly or quarterly) in form GSTR-3B. Subsequently, the taxpayers can edit the auto-populated values if needed. But the taxpayers can continue with their filing based on the edited values, and the system will not restrict in any way.
Note: If you have opted into filing of both GSTR-1 and GSTR-3B quarterly and has filed GSTR-1 and opted to/out to file the IFF for first two months of the quarter, the details in PDF are generated on monthly basis.
One or more of the following information is required to be entered in the tiles while filing GSTR-3B return-
1. Summary details of outward supplies and inward supplies liable to reverse charge with taxes. Note that only table 3.1 (d) is auto-populated from GSTR-2B.
2. Details of interstate supplies made to unregistered persons, composition taxable persons and UIN holders and taxes, out of sales entered at sl. no. 1 above to be entered according to the place of supply. Although the data for this table is auto-populated from GSTR-1, it can be edited later on.
Step 7 – Click the ‘SAVE GSTR-3B’ button at the bottom of the page after all details are added. You can also click on the ‘SAVE GSTR3B’ button on the GSTR-3B main page to save the data entered at any stage and come back later for edits.
Step 8 – Scroll down the page. You can view the draft GSTR-3B return by clicking on ‘PREVIEW DRAFT GSTR-3B’.
To pay the taxes and offset the liability, perform the following steps:
- Click the ‘Proceed to payment’ tile.
- Tax liabilities as declared in the return along with the credits, get updated in the ledgers, and are reflected in the ‘Tax payable’ column of the payment section. Credits get updated in the credit ledger and the updated balance is seen when hovering on the specific headings in the payment section.
- Click the ‘CHECK BALANCE’ button to view the balance of cash and credit. This functionality enables the taxpayers to check the balance before making the payment for the respective minor heads.
- Click the ‘OK’ button to go back to the previous page.
- Provide the amount of credit to be utilised from the available credit (in the separate heads) to pay off the liabilities.
- While providing the inputs please ensure the utilisation principles for credit are adhered to, otherwise, the system will not allow for the offset of liability.
- Click the ‘OFFSET LIABILITY’ button to pay off the liabilities. A confirmation message is displayed. Click the ‘OK’ button.
- If cash balance in Electronic Cash Ledger is less than the amount needed to offset the liabilities, click on the ‘CREATE CHALLAN’ button.
Step 9 – You will also see that the ‘Payment of Tax’ tile is enabled after successful submission of the return.
Step 10 – Select the checkbox for declaration. From the ‘Authorised Signatory’ drop-down list, select the authorized signatory. Click the ‘FILE GSTR-3B WITH DSC’ or ‘FILE GSTR-3B WITH EVC’ button.
Step 11 – Click the ‘PROCEED’ button.
FAQs
What is Nil GSTR-3B return?
- No outward supplies (sales or services provided).
- No inward supplies (purchases) on which tax is due.
- There is no requirement to claim an input tax credit (ITC).
- No reverse charge liabilities (where the recipient is liable to pay GST instead of the supplier).
Is filing of Form GSTR-3B as Nil return mandatory?
Filing Form GSTR-3B is compulsory for all normal and casual taxpayers, even during tax periods with no business activity. During such periods, the return may be filed as NIL, provided all conditions for filing a Nil return are met.