Is it mandatory to File nil GST Returns?

Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. Under the GST regime, every registered person is required to file GST returns on a regular basis, even if there is no transaction during the period. In this blog, we will discuss whether it is mandatory to file nil GST returns.

The answer to this question is yes, it is mandatory to file nil GST returns. A nil return is a return that contains no transaction details, and it is filed when there is no activity during the tax period. Every registered person under GST is required to file a nil return even if there is no business activity during a particular period.

The filing of nil returns is necessary because it is a way for the government to keep track of every registered person and their activities. By filing nil returns, the government can ensure that every registered person is complying with the GST regulations and is not avoiding taxes.

Failing to file nil GST returns can result in penalties and fines. According to the GST Act, a penalty of Rs. 100 per day (up to a maximum of Rs. 5,000) is levied for late filing of nil returns. Moreover, not filing a nil return for a continuous period of six months can lead to the cancellation of GST registration.

In conclusion, it is mandatory to file nil GST returns. It is a legal requirement that every registered person under GST must comply with. Failure to file nil returns can result in penalties, fines, and even the cancellation of GST registration. Therefore, it is advisable to file nil returns on time, even if there is no business activity during the period, to avoid any legal consequences.