All companies will be expected to file monthly returns with bills for all business-to-business transactions under the proposed goods and services tax (GST) regime even if there was no business activity conducted.

This is one of the key recommendations of an expert committee on GST return forms.

“Every registered person is required to file a return for the prescribed tax period. A return needs to be filed even if there is no business activity (i.e. Nil Return) during the said tax period of return,” said the report, which has suggested different return forms and periodicity for filing for different types of taxpayers.

For instance, agencies of the United Nations would have unique GST identity and will file return for the month (in simpler form) during which they make purchases, while government agencies and public sector units that do not deal in GST supplies would be exempted under the proposed law.

Non-resident taxpayers or foreign companies operating in India too would be expected to register and file GST returns, the panel has mooted.

It has also recommended that HSN code (4-digit) for Goods and Accounting Codes for Services should be mandatory from the start for all taxpayers with turnover in the preceding financial year above ₹5 crore.

The Finance Ministry has released the report in public domain and has sought comments by November 6.

This is the fourth in a series of draft reports released by the Finance Ministry for discussion with stakeholders. It had previously released reports of GST committees on refunds, payments and registrations.

The reports are in preparation of the government’s plans to roll out GST – the largest indirect tax reform in the country – from April 1, 2016. The government is hoping to get the Constitutional amendment Bill for the tax passed by Parliament in the upcoming Winter Session.

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