To make compliance more accessible for taxpayers, the Government on Monday approved filing of Nil GST monthly return in FORM GSTR-3B through SMS.

Introduction

Taxpayers with zero tax liability will no longer need to log on to the GST Portal and may file their GST returns via SMS facility, the government. The Central Board of Indirect Taxes and Customs ( CBIC ) has given the facility of filing of NIL statement of form GSTR-1 by SMS from the 1st week of July 2020. The authority also said that this power will play a significant role in GST compliance for over Rs.12 lakh taxpayers. As per the present process.

A taxpayer has to visit the online portal, log in to their account, and then they can file their statement of outside supplies in Form GSTR-1 every month or quarterly basis. In this post, we cast light on who is eligible to avail advantage of this facility, its preconditions, and how you can file returns through SMS.

The returns by taxpayers who have zero taxes to the government are placed in GSTR-3B form on the portal. The government has devised a two-step easy procedure for filing the tax returns.

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Here is a step you can follow to file the GST NIL Returns

1. Taxpayers will require to type: NIL<space> 3B<space>Unique GST Identity number<space> Tax month period

2. A different one time 6 digit password allotted by the government will be sent to your mobile phone number.

3. The taxpayer will then need to type: CNF<space>3B<space> 6-digit unique number.

After following these 3 basic levels, a message accepting the filing of the GST NIL returns will be sent to the mobile phone concluding the process.

Returns under GST – Who is Required to file it?

Usually, all business structures such as partnerships, limited liability partnerships, private companies require to file GST Returns. Further, any business entity (including a sole proprietorship) that lists a turnover exceeding ₹20 lacs in a fiscal year requires to register a GST return.

1. Return under GST

2. Nil Return

3. Nil Return via GSTR – 3B

4. Complexity in filing Nil Return

5. Steps to file Nil return using SMS Facility

6. Last Date for filing NIL GST Return

7. Consequences of not filing Nil GST Return on time

Nil return – Is it necessary to register a GST return?

Yes, the GST Act gives that all people who are registered need to file returns. The frequency of returns though varies. If you’re a business that has not opted for the planning scheme, you will have to file monthly returns. For those available and opting for the composition scheme under GST, quarterly returns become appropriate.

Nil return via GSTR 3B – Despite your business structure, composition scheme status, or turnover, in case of no liability – a Nil return requires to be filed. This is a sort of tax return evidencing that you have no dues payable to the tax authority under GST. Therefore, on the GST portal, the GSTR 3B form requires to be filed monthly for a nil return.

Complexity in listing Nil Return

• India has a low rank of 115 out of a total of 190 nations, in the sub-category of “Filing Taxes” under the World Bank’s Ease of Doing Business rankings.

• Businesses have had a hard time filing taxes by the complex web of online forms, with various due dates.

• Most small businesses have faced an expanded compliance cost for meeting obligations of returns filing

• The detailed provisions, penalties, and deadlines have not been efficient or in line with global tax practices.

Thus, the government, to explain tax filing for those with zero tax liability has given for SMS filing. This is mainly going to assist small businesses, sole proprietors, and companies incurring losses.

Who can use the SMS facility for filing Nil returns?

• For being available to use the SMS facility you require to assure that there are no supplies of goods or services. No reverse charge tax and no pending late fees. Also, no interest or fines payable including claims for any input tax credit

• You need to have your mobile number registered with the GST portal

• This mobile number must not be connected to any other GST number’s authorized signatory.

Pre-requisites

The taxpayers must make sure that:

• The taxpayer must be one of the high eligible taxpayers.

• The authorized signatory and the mobile number must be registered on the GST portal.

• There must be no pending liability of tax, interest, late fee for prior tax periods.

• All the earlier GSTR-3B must be filed.

• The data must not be saved at any stage in the GSTR-3B online version.

Any authorized representative can register a Nil GSTR-3B by the SMS facility. The important thing to note is that the mobile number of the allowed representative must be unique and shall not be easy with other authorized representatives of the same GSTIN.

Steps to file Nil return using SMS Facility

The following procedure you to be served to file a nil return with the GST portal –

Step 1 – You will have to post a text message by the registered mobile number in the following format –

NIL (space) 3B (space) GSTIN (space) tax time in mmyyyy

Thus, for listing a Nil return for June 2020 – the SMS must look like this – NIL_3B_GSTnumber_062020.

Step 2 – This message needs to be sent to the number – 14409

Step 3 – Once this text message is sent, the tax department will send a confirmation code for validating the filing. Exactly cope with this six-digit code received.

Step 4 – Using this copied validation code – kind another SMS with the following details –

CNF (space) 3B (space) verification code, and send it to the same number – 14409.

Thus, the SMS must look something like – CNF_3B_654321

Step 5 – After successfully sending both texts, you will get a confirming ARN (Acknowledgement Reference Number). This number can be utilized to track the status of the Nil return filing on the GST portal’s “Services and returns tab”.

Last Date for filing NIL GST Return

Since this return requires to be filed monthly, the last date for filing of the nil return falls on the 11th of the subsequent month. So, for June 2020, the last date of filing nil return will be 11th July 2020.

Importance of not filing Nil GST Return on time

• If GST Returns, including a Nil return, are not listed within the stipulated deadlines, the business becomes responsible to pay interest and a late fee.

• Interest is determined at the rate of 18% per annum. It has to be determined by the taxpayer on the amount of outstanding tax to be paid. The period will be from the next day of filing to the original date of payment.

• The late fee is Rs. 100 per day per the GST Act, subject to a maximum of ₹5000 may also apply.

Legalpillers , is to stay updated with such kinds of changes and assure to keep updating all the taxpayers with the same. If you need any assistance in GST Registrations or GST Return services contact us today!