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What is GSTR 5?

GST 5 return is a tax return that has to be filled by the non-resident taxpayer for their inward and outward supplies. GSTR 5 return filing is an important process as it consists of all business details, including sales and purchases, of a non-resident India

 

Before we dig into more details of GSTR 5 meaning, let us start with the basics and first understand who is a non-resident foreign taxpayer. A non-resident taxable person is someone who:

  • Is a taxable individual who lives outside India

  • Comes to India for a short period to undertake occasional transactions

  • Does not have a fixed business place/ establishment in India

Who Should File GSTR 5?

  • A taxable non-resident who comes to India for a short period to undertake occasional transactions

  • A non-resident taxpayer who is GST registered and makes a supply of OIDAR (Online Information Database Access and Retrieval) to a non-taxable person in India

What is the Due Date for Filing GSTR 5?

The GSTR5 return must be completed within a week following the GST registration’s expiry date. In case the registration is veiled for a few more months, then the return has to be filed every month before the 20th. For example, the GSTR 5 for the month of June 2022 will be due in July 2022. 

 

Note: In case the non-resident is registered under Section 27, which is a special certificate allocated to a casual taxable individual, the registration is valid for:

  • 90 days from the date of registration, or

  • The period specified in the application

Keep in mind that such an individual would be allowed to make taxable supplies only once the certificate of registration has been issued. The non-resident has to file GSTR-5 within 7 working days of the last day of registration.

GSTR 5 Format

Here are  the particulars of the GSTR 5 format :

  • GSTIN: In this section, one has to specify the Goods and Services Taxpayer Identification Number.

  • Taxpayer’s name, Validity period of registration and the Tax period: This section has to contain the name of the registered taxpayer, who is the authorised signatory for one's business under the GST law. And the duration for which one is filling the GSTR 5 also needs to be specified.

  • Inputs received from Overseas: In this section, records of all the goods that have been imported need to be mentioned along with their HSN codes and all the pertinent documents like bills of entry.  

  • Services Imported: In this field, details of all the services imported from foreign suppliers must be mentioned.

  • Outward Supplies: Outward supplies are the sales made by suppliers. In this section, one should record the details of all the sales that one has made in India. One should specify the details of all the registered buyers along with their GSTINs. The details of  CGST, IGST and SGST should be filled separately.

  • Credit & Debit Notes Details: In this section, the details of all the credit and debit notes raised in the association for one's business transactions in India should be mentioned. One can modify details of credit and debit notes under section 8A of the GSTR 5 Act. 

  • Tax Paid: This section needs to be filled with the details of tax paid under different GST components; SGST, CGST, and SGST. The tax liability for this can be calculated by the data provided by one in the previous sections.

  • Closing Stocks: Details of the one's closing stocks should be mentioned in this section.

  • Refund Claim: This section will contain the details of all the refunds that one has got from the electronic cash ledger.

Prerequisites for Filing GSTR 5

The following are the prerequisites to file GSTR 5 return:

  • Every taxpayer who is registered as a non-resident taxpayer and has a valid GSTIN number is mandated to file GSTR 5

  • He/ she should have a valid user ID along with the password

  • The taxpayer should also have a valid digital signature that shouldn’t be expired or revoked

How to File GSTR 5 Online?

To file the GSTR 5 Return online, you need to follow the steps given below:

  • Step 1: Go to the official portal of GST. Log in using your User ID and password. Then go to Services > Returns > Return Dashboard.

  • Step 2: From the Drop-Down menu, select the Financial Year and the month for which you are to file the return. Click on Search.

  • Step 3: You can make the entries here by clicking “Prepare Online.”

  • Step 4: Once done, click on Generate GSTR 5 Summary. It will be at the bottom of the page. You would be able to view the details.

  • Step 5: You now need to enter the required details in the given boxes, such as 

  1. Import of Goods

  2. Outward supplies made

  3. B2C invoices

  4. 7A, 7B, B2C Small

  5. Credit/ Debit Notes

  6. Unregistered Credit/ Debit Notes

  7. Amended Import of Goods

  8. Amended Outward Supplies

  9. Amended B2C Large and Small Invoices

  10. Amended Credit/ Debit Notes

  11. Amended Unregistered Credit/ Debit Notes

  • Step 6: Once the details are filled in, click on Preview. This will download the Summary Page, which you can carefully review.

  • Step 7: Press the tab of 10A and 10B to see the details of tax liability

  • Step 8: Once satisfied, go to the E-Acknowledgement check-box and Click on “Submit”. This will freeze the data.

  • Step 9: You can then pay the “Total Taxable Value” as displayed on your screen.

  • Step 10: Click on File GSTR 5, and the GSTR 5 Returns Filing will be displayed. You will now be able to View the GSTR 5 Status.

GSTR 5 Late Fees & Penalty

Not filing the return timely will lead to a heavy penalty. Also, if the taxpayer misses filing the GSTR 5, he/ she wouldn’t be able to file the next month’s return as well. 

  • 18% per year interest will be charged on the outstanding amount as a penalty.

  • The time period starts from the 21st of every month, which is the next day of filing the return.

  • A late fee of ₹20 a day for nil return and ₹50 a day otherwise will be levied.

  • ₹5,000 is the maximum late fee that can be charged.

GSTR 5 FAQs

Is there an Electronic Cash Ledger/ Tax Liability Register Electronic Credit Ledger/ that is available for Non- Resident Taxpayers?

Yes, such facilities are available for non-resident taxpayers.

Can I claim credit for taxes paid on the import of services from outside India?

No, as a non-resident, you cannot claim this credit.

Will I be able to make changes in the invoices once I have submitted Form GSTR-5?

Once you have made the GSTR 5 Form submission, you would not be able to make any amends in the invoices.

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