Step-by-Step Guide to File GSTR-1 Nil Return on GST Portal

If a business made no sales during a particular month or quarter, does it still need to file GSTR 1? The short answer is yes. GSTR 1 nil return filing is a legal obligation under the GST law, regardless of whether any outward supply took place. Many small business owners and freelancers are unaware of this, and end up paying avoidable late fees.

This guide explains everything clearly; how to file it on the GST portal, and what the consequences are if the deadline is missed.

Due Dates for GSTR-1 Nil Return Filing

The due dates for filing GSTR 1 (including nil returns) are the same as regular GSTR 1 filings.

Monthly filers: The 11th of the following month. For example, the nil return for March 2025 is due by 11th April 2025.

Quarterly filers (under QRMP scheme): The 13th of the month following the end of the quarter. So for the January to March 2025 quarter, the due date is 13th April 2025.

Missing these deadlines attracts a late fee, even if the return itself is a nil return.

GSTR-1 Nil Return Late Fee

This is where many taxpayers get caught off guard. They assume that since there are no taxes to pay, there is no penalty for missing the deadline. That assumption is wrong.

Under Section 47 of the CGST Act, GSTR 1 nil return late fee is charged at:

• Rs. 20 per day of delay (Rs. 10 under CGST and Rs. 10 under SGST)
• The maximum late fee cap for nil returns is Rs. 500 (Rs. 250 each under CGST and SGST)

How to File GSTR-1 Nil Return on the GST Portal

Filing a nil return is simpler than a regular GSTR 1 because there is no data to enter. Here is a step-by-step breakdown of how to file GSTR 1 nil return monthly on the GST portal.

Step 1: Log In to the GST Portal

Visit gst.gov.in and log in using your GSTIN (GST Identification Number) and password. Complete the CAPTCHA verification to proceed.

Step 2: Navigate to the Returns Dashboard

Once logged in, go to the top menu and click on Services > Returns > Returns Dashboard.

Step 3: Select the Financial Year and Tax Period

On the Returns Dashboard, select the relevant financial year and the tax period (month or quarter) for which you want to file the nil return. 

Step 4: Click on GSTR 1

You will see a set of return forms listed on the screen. Under the GSTR 1 tile, click on Prepare Online.

Step 5: Confirm Nil Filing

On the top of the GSTR 1 preparation screen, there is an option that says "File Nil Return." Click on that checkbox or button to confirm that this is a nil return.

Step 6: Generate Summary and Preview

Click on Generate GSTR 1 Summary. This step computes the return details. Since there is no data, the summary will reflect zeros across all sections.

You can download and review the summary if needed. This is an optional but recommended step for record-keeping.

Step 7: Proceed to File

Once the summary is generated, click on Proceed to File. The system will show a declaration statement that you must accept before submitting.

Step 8: Sign and Submit Using DSC or EVC

You can file the return using one of two methods:

• DSC (Digital Signature Certificate)
• EVC (Electronic Verification Code)

After signing, click on File GSTR 1. A success message will appear along with an Acknowledgement Reference Number (ARN). Save this for your records.

File GSTR-1 Nil Return via SMS

The GST Council has provided a simplified SMS-based filing option specifically for nil returns. This is useful for taxpayers who do not have regular access to the GST portal or prefer a faster method.

Here is how to file GSTR 1 nil return via SMS:

1. Send an SMS to 14409 from the registered mobile number linked to the GSTIN
2. The format is: NIL R1 GSTIN TAX PERIOD
   • Example: NIL R1 27XXXXXXXXXXXXX 032026 (for March 2026)
3. You will receive a six-digit OTP in response
4. Reply with: CNF R1 OTP
5. A confirmation message with the ARN will be sent back

This method is available for both monthly and quarterly filers and is officially recognised by the GSTN (Goods and Services Tax Network).

Conclusion

Filing GSTR 1 nil return is not a complicated task, but it is one that demands consistency. Missing a nil return because there were no sales is one of the most common and avoidable GST compliance errors in India. The late fee may be small, but repeated non-compliance can create larger issues during assessments or scrutiny.

The process takes less than five minutes on the GST portal, and for those who prefer a faster route, the SMS option is equally valid. The key is to build a habit of filing on time, every time, regardless of whether there was any business activity in the period.

Frequently Asked Questions

1. Is it mandatory to file GSTR 1 nil return if there are no sales? 

Yes. Every GST-registered taxpayer must file GSTR 1 for every applicable tax period, even if there were no outward supplies. Not filing is a non-compliance and attracts a late fee.

2. Can GSTR 1 nil return be filed via SMS? 

Yes. Send "NIL R1 GSTIN TAXPERIOD" to 14409 from the registered mobile number, enter the OTP received, and confirm. A valid ARN will be generated.

3. Can I file GSTR 1 nil return after the due date? 

Yes, you can file it late, but a late fee will apply. 

4. How long does it take to file GSTR 1 nil return online? 

Typically 3 to 5 minutes if you are already logged into the GST portal and have your OTP or DSC ready.

5. Can GSTR 1 nil return be revised? 

GSTR 1 cannot be revised once filed. However, corrections can be made in the next period's GSTR 1 using the amendment tables.

About the author

Mehul Jagwani

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Mehul is a seasoned content writer with a passion for simplifying complex accounting and GST topics. With a keen interest in entrepreneurship and business management, he specializes in creating informative and engaging content for themunim.com. His goal is to help businesses understand and implement accounting and GST software solutions effectively. When he's not crafting content, Mehul enjoys exploring new places and spending time with his Golden Retriever.