The Goods and Services Tax (GST) is a comprehensive indirect tax that has replaced many taxes previously levied by the central and state governments in India. GST is a destination-based tax that is charged on the value-added goods and services, and it is levied at every stage of the supply chain, right from the manufacturer to the consumer. To comply with GST, businesses have to file GST returns, which contain all the details of the transactions made during the tax period. One of the essential aspects of GST returns is the declaration of NIL, exempted, and non-GST values.
A GST return is a document that contains all the details of the sales, purchases, output GST, input GST, and tax paid made by a registered dealer during the tax period. The tax period is generally a month, and the GST return has to be filed by the 20th of the subsequent month. A GST return is filed electronically on the GST portal, and it is mandatory for all registered dealers.
A NIL GST return is a filing that indicates that the registered dealer has not made any outward supplies or inward supplies during the tax period. In other words, a NIL GST return is filed when there are no transactions to be reported. Businesses that have registered under GST have to file NIL returns even if they have not made any sales or purchases.
An exempted supply is a transaction that is not subject to GST. These supplies are listed in the Schedule III of the CGST Act and include items like agricultural products, education, health care, and financial services. Exempted supplies are not included in the taxable turnover of the business and are not subject to GST. However, a registered dealer has to declare exempted supplies in the GST return under the NIL or exempted supply section.
A non-GST supply is a transaction that is not subject to GST as it does not fall under the purview of GST. These supplies are listed in the Schedule IV of the CGST Act and include items like alcohol for human consumption, petroleum products, and electricity. Non-GST supplies are not included in the taxable turnover of the business and are not subject to GST. However, a registered dealer has to declare non-GST supplies in the GST return under the NIL or exempted supply section.
To declare the NIL, exempted, and non-GST values in the GST return, businesses have to file GSTR-3B or GSTR-1 returns. GSTR-3B is a summary return that has to be filed by the 20th of the subsequent month, and it contains the details of the outward and inward supplies, input tax credit, and tax payable. The NIL, exempted, and non-GST values have to be reported in the exempted supplies or non-GST supplies column. In the case of GSTR-1, which is a detailed return containing the invoice-wise details of the outward supplies made during the tax period, the NIL, exempted, and non-GST values have to be reported under the respective sections.
Non-declaration of NIL, exempted, and non-GST values in the GST return can attract penalties and interest. If a registered dealer fails to file the GST return or files a return with incorrect details, they will have to pay a late fee of Rs. 100 per day for CGST and Rs. 100 per day for SGST. The maximum late fee is Rs. 5,000. In addition to the late fee, interest has to be paid on the unpaid tax amount at the rate of 18% per annum.
Declaration of NIL, exempted, and non-GST values is an important aspect of GST returns. Businesses that have registered under GST have to file NIL returns even if they have not made any sales or purchases. Exempted and non-GST supplies are not subject to GST, but they have to be declared in the GST return. Non-declaration of NIL, exempted, and non-GST values in the GST return can attract penalties and interest, and it is, therefore, essential to report all these values accurately and on time.
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