How to File Nil Returns via SMS in GST: Complete Procedure and Eligibility Explained

GSTreturn filing is a regular duty for every active GST registration. Many taxpayers think that if there is no sale or purchase in a tax period, no GST action is needed. That is not correct. If a return is due, the taxpayer must file it, even when there is no transaction to report.

GST allows nil return filing through SMS for certain forms. There is no need to log in to the GST portal for such nil filing as long as all conditions are satisfied.

What is a Nil Return Under GST?

A nil return is a return where there is no data to report. It is not based on sales alone. The taxpayer must check whether there is any outward supply, reverse charge liability, input tax credit, amendment, credit note, debit note, advance, interest, late fee or other amount to report.

If any such entry exists, the return is not a nil return. In that case, the taxpayer cannot use SMS filing. The return must be filed on the GST portal with the required details.

Nil filing through SMS is available for selected GST forms, including GSTR-1, GSTR-3B and GST CMP-08.

Nil GSTR-1 Through SMS

GSTR-1 is the return for details of outward supplies. In common terms, it reports sales and related outward supply data.

A taxpayer can file nil GSTR-1 through SMS when there is no outward supply for the tax period. But that is not the end of the test. The taxpayer must also have no reverse charge supply, no amendment to past supplies, no credit note, no debit note, no amendment of credit note or debit note, no advance received for services and no adjustment of advances received for services.

For example, if a business has no sale in April but issues a credit note for an earlier invoice, nil GSTR-1 through SMS is not allowed. If the taxpayer has received an advance for services, nil GSTR-1 is not allowed. If an amendment to a past invoice is required, the taxpayer must file through the portal.

Who Can File Nil GSTR-1 Through SMS?

Nil GSTR-1 through SMS is available to a normal taxpayer, casual taxable person, SEZ unit and SEZ developer with a valid GSTIN. The taxpayer must have selected the filing frequency on the GST portal. The authorised signatory and the mobile number must be registered on the portal. There must be no saved data in the online version of GSTR-1.

This last point matters. If the taxpayer has saved invoice data or any other detail in GSTR-1 on the portal, SMS filing will not work. The taxpayer must remove the saved data or complete filing through the portal.

Nil GSTR-3B Through SMS

GSTR-3B is the summary return for tax liability, input tax credit and payment. A taxpayer can file nil GSTR-3B through SMS when there is no outward supply, no reverse charge liability, no input tax credit and no pending liability such as tax, interest or late fee for any past period.

This condition is strict. If a taxpayer has no sale but has input tax credit, the return is not nil. If there is late fee from an earlier period, the return is not nil. If reverse charge tax is payable, the SMS route cannot be used.

Who Can File Nil GSTR-3B Through SMS?

Nil GSTR-3B through SMS is available to a normal taxpayer, casual taxable person, SEZ unit and SEZ developer with a valid GSTIN. The authorised signatory and mobile number must be registered on the GST portal. There must be no pending liability from any past period. All past GSTR-3B returns must be filed. There must be no saved data in the online GSTR-3B form.

A taxpayer also cannot file GSTR-3B for a tax period unless GSTR-1 and GSTR-3B for the past tax period have been filed. This prevents skipping past returns.

Nil GST CMP-08 Through SMS

GST CMP-08 is filed by composition taxpayers. A composition taxpayer must file CMP-08 even when there is no business activity for the quarter.

Nil CMP-08 through SMS is allowed when there is no outward supply, no reverse charge liability, no amendment to past supplies, no credit note, no debit note, no amendment of credit note or debit note, no advance received for services and no adjustment of advances received for services.

Once CMP-08 is filed, it cannot be revised. If there is any transaction or correction to report, the taxpayer must use the GST portal.

Who Can File Nil CMP-08 Through SMS?

A taxpayer registered under the composition scheme can file nil CMP-08 through SMS if the taxpayer has a valid GSTIN. The authorised signatory and mobile number must be registered on the GST portal. There must be no saved data in the online CMP-08 form.

CMP-08 can be filed on or after the first day of the month after the tax period. If the taxpayer tries before that date, the system will reject the filing request.

Step-By-Step Procedure to File Nil Return Through SMS

The SMS filing process has two stages. First, the authorised signatory sends an SMS from the registered mobile number to 14409. The message must be in the format prescribed by the GST system.

The format is:

NIL

After this message is accepted, the system sends a verification code to the same mobile number. The verification code remains valid for 30 minutes.

The taxpayer must then confirm the filing by sending another SMS to 14409.

The confirmation format is:

CNF

After confirmation, the system sends an Acknowledgement Reference Number to the registered mobile number and registered e-mail ID. The return status on the GST portal changes to “Filed”.

The transcript shared with the article explains this same flow in a practical way. The authorised signatory sends the nil return SMS to 14409, receives a verification code, sends the confirmation message and then receives an acknowledgement.

If the taxpayer is not eligible, the system sends an error message. If the wrong code is entered more than three times, SMS filing for that GSTIN and mobile number is blocked for that day.

Important Precautions

The SMS must be sent from the mobile number registered for the authorised signatory. If more than one authorised signatory uses the same mobile number, the taxpayer must update a separate number through non-core amendment. Once the amendment takes effect, SMS filing can be used from that number.

If an incorrect verification code is entered more than three times in a day, the GSTIN and mobile number combination is blocked for SMS filing for that day. Filing through the GST portal remains available.

A new taxpayer must activate the user ID on the GST portal before using SMS filing. If the authorised signatory is changed, the user ID must be reactivated before filing a nil return through SMS.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates