Form GSTR-5 is a GST return that is to be filed by every registered non-resident taxable person. GSTR 5 contains all the information related to purchases and sales of the filer i.e. for the non-resident (NR)’s business. It has to be filed online on the official GST Portal as there is no offline facility available. 

However, the non-resident taxpayer cannot avail ITC via form GSTR-5. If the NR wishes to avail Input Tax Credit ( ITC), then it is important for them to register as a normal taxpayer and file Form GSTR 1 and GSTR 3B as a regular taxpayer. 

What is GSTR-5 ?

GSTR-5 return contains information related to sales and purchases of a non-resident’s business. It is to be filed by every registered non-resident taxable person.

Who is a Non-Resident Foreign Taxpayer?

A non-resident foreign taxpayer is someone who does not have a business set up in India but has arrived here for a short/temporary period to furnish business or just supply goods to a particular entity. These non-resident foreign taxpayers need to file GSTR 5 mandatorily. 

What is the due date for GSTR 5?

The due date to file GSTR 5 is every 20th of next month, as per the GST Act. For example, the return of September 2020 will be due on 20th October 2020. However, if a notification for the extension is issued by the government then the date is as changed as per the information provided in the new notification.

Late Fee and Penalty on GSTR 5 non-filing

• If the NR Taxpayer fails to file GSTR 5 then the next month’s return cannot be filed. Thus, it will attract heavy fines and penalties due to late filings.
• If the NR Taxpayer delays the filing process then he/she will have to pay the interest (18% per annum) and a late fee. Interest is calculated by the taxpayer on the amount of outstanding tax to be paid. The time period will be from the next day of filing (21st of the month) to the date of payment.
• The amount of late fee is Rs. 50 per day and Rs. 20 per day for NIL return. The maximum late fee charged is Rs. 5,000.

Where to file form GSTR 5?

Form GSTR-5 can be retrieved from the GST Portal.

The NR Taxpayer needs to login from their official credentials on the GST Portal and then navigate to Services > Returns > Returns Dashboard.

GSTR 5 Format

Form GSTR 5 has 14 headings. Let us understand each section one by one in detail. 

1. Section 1: GSTIN: The NR taxpayer needs to provide their correct GSTIN. In case the NR Taxpayer does not have GSTIN then they can provide Provisional ID. 
2. Section 2: This section is divided into 3 parts:
   1. (a) Legal name of the taxpayer 
   2. (b) Trade name if any and 
   3. (c) Validity period of registration.

All these details will be auto-populated once GSTIN is filled

3. Section 3:This is about Inputs/Capital goods received from Overseas (Import of Goods). In this section, the Non-Resident taxpayer must report inputs and capital goods imported into India. He/she also needs to give other details like that of Bill of entry along with IGST, cess paid, rate of tax and amount of ITC available.

4. Section 4: It is about amendments in any previous return. In the fourth section, the Non-Resident taxpayer can make changes in the earlier-filed returns. Changes can be made in the below-mentioned columns:

Note: Both Original & Revised Details of Bill of Entry must be given

5. Section 5: Taxable outward supplies made to registered persons (including UIN Holders) This section has invoice wise details of B2B sales in India including sales to UIN holders. It is important for the Non-Resident Taxpayer to provide all the details including IGST/CGST & SGST & Cess along with the State.

6. Section 6: Taxable outward inter-State supplies to unregistered persons where invoice value is more than Rs. 2.5 lakh. Section six contains all the details of large sales (B2C) and inter-state sales where invoice value is more than R.2.5 lakh to unregistered persons.

7. Section 7: Taxable supplies (net of debit notes and credit notes) to unregistered persons other than the supplies mentioned in Table 6. This section covers details of intra-state and inter-state sales less than 2.5 lakhs to unregistered dealers (B2C Others). Inter-state sales must be mentioned state-wise.

8. Section 8: Amendments to taxable outward supply details furnished in returns for earlier tax periods in Table 5 and 6 (including debit note/credit notes and amendments thereof). It contains changes in previous month’s B2B and B2C Large sales. Amendments are also mentioned here. Details of original debit notes and credit notes issued during the month are also provided here.

9. Section 9: Amendments to taxable outward supplies to unregistered persons furnished in returns for earlier tax periods in Table 7. This section talks about the details of B2C sales of previous months which were originally disclosed in Table number 7. Also, intra-state sales need to be mentioned in a consolidated summary and inter-state sales need to be mentioned state wise.

10. Section 10: This section shows the total tax liability.

1. 1. On account of outward supply: It has the details of tax liability for outward supplies for the current month.
   2. On account of differential ITC being negative in Table 4: It has the additional tax to be paid due to the reversal of ITC on making changes in any imports of earlier months (Table 4).

11. Section 11: This section shows the tax payable and the tax which is paid. The details of IGST, CGST, SGST & Cess needs to be mentioned appropriately. The amount can be paid through ITC or cash also.

12. Section 12: Interest, late fee and any other amount payable and paid. This section has details of interest and late fee due. It also has details of interest and late fee actually paid on account of late filing.

13. Section 13: Refunds claimed from electronic cash ledger. Details regarding refund claimed from Electronic Cash Ledger (ECL) are found here. The user can select the bank account from a dropdown in which the Non-Resident taxpayer wants to receive the refund.

14. Section 14: Debit entries in electronic cash/credit ledger for tax/interest payment (to be populated after payment of tax and submissions of return). The last section has entries related to cash outflow for payment of tax/interest/late fee. It is populated after payment of tax and filing the return.

Now that all the details are updated, the form GSTR 5 is verified by the authorized signatory who is a representative of the non-resident taxpayer. He must be a resident of India with a valid PAN. The final section has details like date, place, the name of the authorized signatory and signatures of the authorized signatory along with the designation.

After Form GSTR-5 is filed:

• On the successful filing of Form GSTR 5 – ARN is generated.
• An email and an SMS are sent on the NR taxpayer’s registered email id and phone number respectively.

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