I am trying to build a GUI in netBeans GUI builder. As I align panel next to each other there seems to appear small gaps between the elements as the following picture shows.

I've tried searching for the solution for this issue and was suggested to right click on the component and select no space but there is no option for no space

You need to type 0 in the "Left:" field.
You can also select any "gap" in the editor: it turns green, then with the mouse-wheel you can change its width or height (depending on the gap function).
The Netbeans GUI Builder can be incredibly effective, but to master it you need to understand how it works, best is to follow some tutorials available on internet.