How to correct a NIL GST return filed by mistake when actual sales existed using DRC-03?

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Hussain ahmed

31 Points Posted on 30 August 2026

By mistake, my business filed NIL GSTR-3B returns for June, July, and August 2025, even though we had active sales of ₹11 Lakhs in each of those months.

I want to correct this mistake voluntarily before getting any notice from the tax department.

Can I pay this tax liability with interest using Form DRC-03 under Section 73(5) to get a 0% penalty?
Will the department treat this as a fraud/suppression case (Section 74) just because a NIL return was filed, or can it be cleared as a genuine clerical mistake?
Since the delay is now over a year, should I file one single DRC-03 covering all three months?

I am ready to pay the mandatory 18% interest via cash. Looking forward to advice from CAs and tax professionals. Thank you!

Replies (3)

Quick Summary

A business mistakenly filed NIL GSTR-3B returns for several months despite having significant sales. They are seeking advice on how to rectify this error before it attracts departmental attention. The discussion explores whether Form DRC-03 is the appropriate method for voluntary tax payment with interest, or if amending the GSTR-1 and subsequent GSTR-3B returns is the correct procedure. Advice is sought on avoiding penalties and ensuring the mistake is treated as clerical rather than fraudulent.

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 30 August 2026

Hoping that both GSTR1 & GSTR 3B were filed nil in the month of June , July, Aug 25 , So for F.Y 25-26 correction in the GSTR1 & GSTR 3B , Can be done on or before 30 th November 26 , as per section 37(3) of the CGST Act for GSTR1 , and section 39(9) of the CGST Act for GSTR3B ( please refer)

Therefore if you can report June , July , Aug 25 tax liability, in GSTR1 & GSTR 3B along with correct interest, in the August 26 return, which you are going to file in the month of September 26 .

Considering above DRC03 not required, you can still discharge your tax liability through GSTR1 & GSTR3B up to 30 th November cutoff date.

Take more opinion as well.

Tax Garden

Tax Consultant

2036 Points Posted on 01 September 2026

DRC-03 is not the right route here. DRC-03 is for voluntary tax payment in specific situations such as audits, investigations, or where an officer has raised a demand. It does not amend your return record.

For a NIL GSTR-3B filed by mistake when there were actual sales, the correct path is:

1. GSTR-1 amendment: Report the missed B2B invoices in Table 9A or Table 10 (B2C) in the current period GSTR-1. This corrects the outward supply record.

2. Next GSTR-3B: Declare the omitted tax liability in Table 3.1 along with current period figures and pay the correct total tax at filing.

3. Interest: 18% per annum from the original due date to date of actual payment.

IMPORTANT: If the period is closed for GSTR-1 amendments, professional guidance is needed on the best path forward.

For the step-by-step on NIL return consequences and correction options, this [GST nil return guide](https://taxgarden.in/blog/gst-nil-return-filing-gstr-1-gstr-3b-sms-portal-guide-2026) covers what happens after a nil is filed and how to rectify it.

Aashok Kumar Sharma

Finance/Compliance Consultant

69816 Points Posted on 28 October 2026

For FY 2025-26 periods Sec 74A applies, not 73/74: under Sec 74A(8)(i), paying the tax with interest before any notice – DRC-03 is the proper form for such voluntary payment – and informing the officer means no SCN or penalty (fraud cases need 15% penalty under 74A(9)); also report the sales in GSTR-1 (9A/10) by 30 Nov 2026 so GSTR-9 reconciles.