Nil return in QRMPS

Yes, you are required to file a Nil return even under the QRMP (Quarterly Return Monthly Payment) scheme if there have been no sales or purchases during the relevant period.

Under the GST law, registration mandates that every taxpayer must file returns for every tax period, regardless of whether there were any taxable transactions. Failing to file these returns—even when they are "Nil"—can result in late fees and penalties, and may eventually lead to the suspension or cancellation of your GST registration.

Key Points to Remember:

• Mandatory Filing: Filing a Nil return is a legal obligation for all registered taxpayers, including those under the QRMP scheme.

• Consequences of Non-Filing: Failure to file can attract a late fee (currently ₹20 per day, subject to a cap). Persistent non-filing can lead to the GST portal blocking your access to future filings and potential cancellation of your GSTIN.

• Maintaining Compliance: Filing Nil returns formally notifies the tax authorities that your business had no activity for that period, which helps keep your registration active and avoids unnecessary compliance issues during future audits.

Summary

If you are registered under GST, you must file your returns (GSTR-1 and GSTR-3B) according to your assigned frequency,Even if you have no sales or purchases (a "Nil" situation) in a given tax period, you are still required to comply with the filing requirements under the Quarterly Return Monthly Payment (QRMPS) scheme.

Filing Obligations under QRMPS for Nil Returns

• GSTR-3B: You must still file a Nil GSTR-3B return on a quarterly basis. Even with zero transactions, filing is mandatory to avoid late fees and penalties for non-compliance.

• IFF (Invoice Furnishing Facility): This is optional. If you have no outward supplies to report for the relevant months of the quarter, you do not need to use the IFF.

• GSTR-1: While GSTR-3B is mandatory, if you have no outward supplies for the entire quarter, you must ensure your quarterly GSTR-1 is filed as a Nil return.

Key Considerations

• Late Fees: Failing to file a Nil return will attract late fees under the GST Act. These fees accrue daily until the return is filed.

• Compliance: The QRMPS scheme is designed to reduce the number of filings, but it does not exempt taxpayers from the duty to declare Nil activity.

Summary: You are required to file Nil returns for both GSTR-3B (quarterly) and GSTR-1 (quarterly) even if there is no business activity, as failure to do so will result in late fees.