Bank transaction sales and purchases treatment

Summary: Filing Nil returns when you have active business transactions is considered a violation of GST law. You will be liable to pay the unpaid tax, 18% interest, and mandatory penalties. The penalty amount will depend on whether the authorities categorize the oversight as a "genuine mistake" (10% of tax) or "fraudulent suppression" (100% of tax). It is recommended to rectify the filings and pay the dues immediately to minimize legal and financial exposure.