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Who can file nil composition annual return?

Who can file nil composition annual return:

Only the following persons are allowed to file the nil composition annual return. It is important to note that all of the following conditions shall be fulfilled. Only then you will be eligible for NIL composition annual return. Otherwise you will have to file a normal annual return.

1.No Outward Supply:

There is no outward supply by the person. In case any outward supply is made by the taxable person he cant file Nil annual return. It is important to note that even exempted outward supply shall not be there. e.g. If X, a composition dealer earned interest on an FD. This will be an exempted supply under GST and hence will be liable for reporting under annual return.

2. No inward supply:

There is no inward supply or purchase by the composition dealer. Even if a single purchase is made. Liability to file normal annual return will be there.

3. No any other liability to report:

There should not be any liability to report by the dealer. If you have any liability to report you will have to file normal return. NIl return is available only when you have absolutely nothing to report.

4. No claim of refund:

Any claim of refund of any type should be there. e.g. in case the tax is wrongly paid and taxpayer has applied for refund of it. Then they cant file NIL composition annual return. 

5. No demand order from department: 

In case any demand is raised by the depart the taxpayer will have to file normal composition annual return. Although when there is no activity in a registration the department has right to cancel the registration. If it s a voluntary registration. In case any demand is there, you cant file a NIL return.


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Profile photo of CA Shafaly Girdharwal CA Shafaly Girdharwal


New Delhi, India

CA Shaifaly Girdharwal is a GST consultant, Author, Trainer and a famous You tuber. She has taken many seminars on various topics of GST. She is Partner at Ashu Dalmia & Associates and heading the Indirect Tax department. She has authored a book on GST published by Taxmann.

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