Single-click nil GSTR-1 filing now live on the GST portal

The Goods and Services Tax Network (GSTN) issued a GSTR-1 advisory on 2nd August 2022. As per the update, you can now file a nil return in Form GSTR-1 with a single click from the return dashboard on the GST portal.

With this move, the government aims to improve the user experience in filing GSTR-1 and Invoice Furnishing Facility(IFF). Going forward, tick the checkbox ‘File NIL GSTR-1’ on the GSTR-1 dashboard to file your GSTR-1 with a single click.

The GST-registered businesses eligible to file a nil GSTR-1 can follow some simple steps to use the new facility on the GST portal. They must log in to the GST portal and go to the return dashboard. Once they reach the dashboard, they must select the GSTR-1 return and the return period. Click on the button ‘Prepare Online.’

On the next screen, they must tick the checkbox known as ‘File NIL GSTR-1’. Upon clicking it, the system displays a message for nil filing. Further, it hides all the tiles and tables. Suppose there are already some saved data or records in GSTR-1 for that period. Click on the ‘RESET’ button towards the bottom of the GSTR-1 dashboard. It deletes saved documents that otherwise prohibit one from filing a nil GSTR-1.

The last step is to click on the ‘File Statement’ button at the bottom of the GSTR-1 dashboard. After that, they must file their nil GSTR-1 using a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).

The earlier process involved a few extra steps for generating a GSTR-1 summary before filing the nil GSTR-1. The current process has removed this step. Alternatively, the taxpayers continue to have the SMS mode to submit a nil GSTR-1 or GSTR-3B.

Businesses can file a nil GSTR-1 return if they have no business activity during the tax period. They must satisfy the following conditions to file a nil GSTR-1:

(a) Absence of any sales in the month or quarter (including exempted sales, purchases where tax is paid on a reverse charge basis, zero-rated supplies such as exports and deemed exports). 

(b) Amendments are not made for supplies declared in any previous tax period.

(c) Credit or debit notes not raised or amended.

(d) No instances of any advance receipts towards services rendered.

One must note that it is mandatory to file GSTR-1 as a regular GST-registered taxpayer, even if it is a nil return. It includes SEZ units, SEZ developer and casual taxpayers.

For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@cleartax.in