Now, more than 12 lakh Goods & Services Tax (GST) assessees, with NIL returns can file GSTR-1 form using SMS (Short Messaging Service). NIL return means that the assessee did not make any outward supply nor receive any inward supply, which means NIL tax liability.
GSTR-1 and GSTR-3B are two key return forms that need to be filed by GST assesses. GSTR-1 is related with total liability while GSTR-3B shows how much tax has been paid. SMS-based return filing for GSTR-3B has already been introduced with effect from June 9.
In a statement, the Central Board of Indirect Taxes & Custom (CBIC) said that the facility of SMS filing of NIL statement in form GSTR-1 will be made effective from first week of July. “The filing of NIL statement in FORM GSTR-1 also through SMS would substantially improve ease of GST compliance for over 12 lakh registered taxpayers,” the board said. At present, these taxpayers have to log into their account on the common portal and then file their statement of outward supplies in form GSTR-1 every month or each quarter.
CBIC said that now these GST taxpayers with NIL outward supplies would not need any more to log on to the GST portal and would be able to file their NIL statement in form GSTR-1 through just an SMS.
The status confirmation of the filed statement or return application can be tracked by them on the GST portal by logging in to their GSTIN account, and navigating to Services>Returns>Track Return Status.
How to file returns?
The Board said that to initiate the SMS facility, the taxpayer will have to send a SMS to 14409 as NIL<space>R1<space>GSTIN number<space>Tax period (in MMYYYY). For example: NIL R1 09XXXXXXXXXXXZC 042020 (for monthly return of April 2020).
After this, they will get a six-digit code with validity up to 30 minutes, and can confirm their Nil statement filing by sending: CNF R1<CODE> to 14409.
By using the similar steps, the taxpayer can file their NIL return in form GSTR-3B also however they need to use 3B instead of R1 in their SMS to 14409.