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Simplified SMS Filing for Nil GSTR-3B Returns

This article details the process for filing Nil GSTR-3B returns via SMS, a facility introduced by CBIC to simplify GST compliance, particularly during challenging times. It outlines the eligibility criteria and step-by-step instructions for submitting the return using a registered mobile number. The content also includes recent regulatory updates impacting GSTR-3B filing and explains how to track the status of a filed return.

📖 2 min read read🏷️ GSTR-3B Filing

During the 2020 and 2021 COVID-19 lockdowns, many businesses experienced significant operational disruptions. To alleviate GST compliance burdens, the Central Board of Indirect Taxes and Customs (CBIC) introduced an SMS-based facility for filing Nil GSTR-3B returns, effective from June 8, 2020. This option is not applicable to composition taxpayers but is available for casual taxable persons, Special Economic Zone (SEZ) units, or developers.

Recent Regulatory Changes

July 5, 2022

A new Table 3.1.1 was added to GSTR-3B, enabling e-commerce operators and sellers to declare relevant sales and corresponding tax liabilities for a given tax period. This change, along with other modifications to Tables 3.2 and 4, was officially announced in CGST notification 14/2022.

May 17, 2022

The deadline for submitting GSTR-3B for April 2022 was prolonged until May 24, 2022.

February 1, 2022 (Budget 2022 Updates)

• The final date for making corrections or amendments in GSTR-3B and claiming any outstanding Input Tax Credit (ITC) for a financial year was revised. It is now November 30 of the subsequent year or the date of filing the annual return, whichever occurs earlier, replacing the previous deadline tied to the September return. • Under Section 29, Goods and Services Tax (GST) registration can be revoked if GSTR-3B returns are not submitted for consecutive tax periods.

December 29, 2021

CGST Rule 36(4) was modified, eliminating the provision for an additional 5% Input Tax Credit beyond what is reflected in GSTR-2B. Effective January 1, 2022, businesses can only claim ITC if it has been reported by the supplier in GSTR-1 or the Invoice Furnishing Facility (IFF) and is visible in their GSTR-2B. Section 16(2)(aa) was formally announced on December 21, 2021.

Understanding Nil GSTR-3B Returns

A Nil GSTR-3B return is submitted when an entity has no supply information to report for a specific period. This implies no outward supplies, no inward supplies eligible for Input Tax Credit (ITC), and consequently, no tax liability.

Before filing a Nil GSTR-3B for any given month, taxpayers should ensure the following conditions are met: • No provision of goods or services, including those that are Nil-rated, exempt, or non-GST. • Absence of any outstanding interest or late fee obligations. • No supplies subject to tax under the reverse charge mechanism. • No other tax liabilities to be settled.

Prior Process for Nil Return Submissions

Previously, both Nil GSTR-3B and Nil GSTR-1 returns were filed electronically via the Returns dashboard on the official GST portal. Taxpayers would answer a series of questions before GSTR-3B filing, which determined the tables available for data declaration. The Nil return was submitted by answering 'Yes' to the question, 'Do you want to file a Nil return?' This method was generally more time-consuming, requiring several steps to complete.

Procedure for Filing Nil GSTR-3B via SMS

Before initiating the SMS filing, certain prerequisites must be satisfied: • The authorized signatory's mobile number must be registered on the GST portal. • The mobile number associated with one authorized signatory must be unique and not used by another authorized signatory for the same GSTIN. • There should be no outstanding tax, late fees, or interest from previous tax periods. • All GSTR-3B returns for preceding months must have been successfully filed. • No data should be in a "Saved" state on the online GST portal.

To file a Nil GSTR-3B through SMS, follow these steps:

  1. Compose Initial SMS: Using the mobile number registered on the GST portal, send an SMS in the format: NIL 3B [GSTIN] [tax period in mmyyyy]. For example, to file for May 2020, type NIL 3B 09AGBPS5577MSZC 0520. Dispatch this message to 14409.
  2. Receive Validation Code: A six-digit validation code will be sent to your registered mobile number.
  3. Confirm Filing: To confirm the submission, send a second SMS: CNF 3B [6-digit verification code]. For instance, if the code is 123456, send CNF 3B 123456. This message should also be sent to 14409.

Upon successful filing, you will receive a confirmation message containing an Application Reference Number (ARN). For assistance from CBIC, you can send HELP 3B to 14409.

Monitoring the Status of a Filed Nil GSTR-3B Return

To check the status of a submitted return, log into the GST portal. Navigate to Services > Returns > Track Return. The Application Reference Number (ARN) provided after successful SMS filing can then be used to monitor the return's progress.

Frequently Asked Questions

What is the primary purpose of a GSTR-3B return?
The GSTR-3B return is a monthly self-declaration form that summarizes the outward supplies made, inward supplies liable to reverse charge, and Input Tax Credit (ITC) availed by a taxpayer, along with the net tax payable.
Who is generally required to file GSTR-3B?
All registered taxpayers under GST, except those registered under the Composition Scheme, Input Service Distributors (ISD), and Non-Resident taxable persons, are required to file GSTR-3B monthly or quarterly, depending on their turnover.
What are the consequences of failing to file GSTR-3B by the due date?
Failure to file GSTR-3B on time can result in late fees and interest charges. Additionally, a taxpayer cannot file subsequent GSTR-1 returns or claim ITC for future periods until the pending GSTR-3B is filed.
Can a GSTR-3B return be revised after it has been filed?
No, a GSTR-3B return cannot be revised once it has been filed. However, any errors or omissions can be rectified in the GSTR-3B of subsequent tax periods.
What key details are typically reported in a GSTR-3B return?
GSTR-3B reports details such as taxable outward supplies, supplies liable to reverse charge, inter-state outward supplies, eligible Input Tax Credit, and the tax payable and paid.

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