GSTR-5 Filing Guide for Non-Resident Taxpayers

Non-resident taxable persons operating in India must file GSTR-5 monthly to report their business transactions under the Goods and Services Tax (GST) rules. This return captures outward supplies, imports, amendments and tax liabilities during temporary stays, ensuring compliance without a fixed place of business. This guide explores what GSTR-5 is, covering who needs to file it, due dates, the online filing process, late fees and the specific format.

What is GSTR-5?

GSTR-5 is the monthly GST return for non-resident taxable persons active in India. These individuals or entities report outward supplies, imports, tax payments and amendments from prior periods through this form. Filing GSTR-5 is important because it ensures accurate tax discharge during temporary business stays, helping maintain GST compliance without a fixed Indian operation. Non-residents must submit GSTR-5 electronically via the GST portal, including all transactions for the registration period.

Also Read: GSTR 1 Filing: Due Date, Format, Late Fee & Eligibility

Who Should File GSTR-5: Eligibility Criteria

The GSTR-5 form must be filed by individuals or businesses classified as a ‘non-resident taxable person’ (NRTP) under the GST framework. The eligibility criteria are as follows:

• Non-Resident Taxable Person (NRTP): An individual or business that supplies goods or services in India but does not have a fixed place of business or residence in the country. This includes foreign companies participating in a trade fair in India to sell their products.
• Temporary GST Registration: Any NRTP must obtain a temporary GST registration under Section 27 before conducting business. This registration is valid for the period specified in the application or 90 days, whichever is earlier.
• OIDAR Service Provider: It is important to distinguish that non-resident providers of Online Information and Database Access or Retrieval (OIDAR) services to non-taxable persons in India file Form GSTR-5A, not GSTR-5.

Also Read: Everything you need to know about Business Loan

GSTR-5: Due Date and Filing Frequency

The GSTR-5 return must be filed monthly. The standard due date for filing is the 13th of the month following the tax period. For example, the GSTR-5 for transactions in April must be submitted by the 13th of May.

When the temporary registration of a non-resident taxpayer expires, the final GSTR-5 return must be filed within 7 days of the date of registration expiry.

Here is a typical schedule for GSTR-5 due dates for a financial year:

Step-by-Step Process to File GSTR-5 Online

The GSTR-5 filing must be completed online through the official GST portal.

1. Log in to the GST Portal: Use your user ID and password to access the portal.
2. Navigate to the Returns Dashboard: Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’.
3. Select the Filing Period: Choose the financial year and the month for which you are filing the return.
4. Choose GSTR-5: On the returns dashboard, select the option to ‘Prepare Online’ for GSTR-5.
5. Enter Details: Fill in the required information across the various sections of the form.
6. Generate Summary: After entering all details, click ‘Generate GSTR-5 Summary’ to review the consolidated information.
7. Submit the Return: Once you have verified the accuracy of all data, submit the form. You can sign the return using a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).
8. Pay Tax: After submission, proceed to pay any outstanding tax liability. The payment can be made from the electronic cash ledger.

Also Read: Income Tax Return - New Tax Regime vs. Old Tax

GSTR-5 Return Format Explained

The GSTR-5 format consists of 14 sections. Here is a breakdown of the key tables:

GSTIN, Taxpayer Details and Tax Period

This section contains auto-populated information, including the Goods and Services Tax Identification Number (GSTIN), the legal and trade names of the taxpayer and the return filing period.

Import of Goods and Capital Goods (Bill of Entry Details)

Here, you must provide details of all goods and capital goods imported into India. This includes the Bill of Entry details, taxable value, IGST and cess paid.

Amendments to Previous Returns

This table is for making corrections to information submitted in previous GSTR-5 returns. You can amend details related to imported goods or outward supplies.

Outward Supplies to Registered Persons (B2B)

Provide invoice-level details of all sales made to GST-registered businesses, including those with a Unique Identity Number (UIN).

Outward Supplies to Unregistered Persons (B2C Large and Small)

This section is for reporting sales to unregistered customers.

• B2C Large: Details of inter-state invoices where the value is more than ₹2.5 lakh.
• B2C Small: Consolidated details of all other sales to unregistered persons, including intra-state and smaller value inter-state supplies.

Amendments to Outward Supplies of Previous Periods

Use this section to report any amendments to B2B or B2C invoices from earlier tax periods. This includes details of any credit or debit notes issued.

Tax Liability and Payment Details

This table summarises the total tax liability arising from your outward supplies and any amendments. It shows the breakdown of CGST, SGST/UTGST and IGST payable and paid.

Interest and Late Fee Details

If the GSTR-5 is filed after the due date, this section will show applicable interest on the outstanding tax amount and any late fees.

Refunds from Electronic Cash Ledger

If you have an excess balance in your electronic cash ledger, you can claim a refund. This section captures details of the claimed refund and the bank account to which the funds will be paid.

Debit Entries in Electronic Cash/Credit Ledger

This section is auto-populated after you have paid the tax and submitted the return. It shows the debits made from your electronic cash or credit ledger to settle the liabilities.

Verification and Submission by Authorised Signatory

The return must be verified and signed by an authorised signatory who is a resident in India with a valid PAN.

GSTR-5: Late Fees, Penalties and Interest on Delayed Filing

Failing to file the GSTR-5 return on time attracts financial penalties.

• Late Fees: A late fee of ₹50 per day (₹25 for CGST and ₹25 for SGST) is charged for each day of delay. For nil returns, the fee is reduced to ₹20 per day (₹10 for CGST and ₹10 for SGST). The maximum late fee is capped at ₹5,000.
• Interest: In addition to late fees, an 18% per annum interest rate is levied on the outstanding tax liability. Interest is calculated from the day after the due date to the actual payment date.

Non-residents facing such penalties or cash flow challenges can explore Business Loan solutions from Godrej Capital to cover liabilities swiftly and use our Business Loan EMI Calculator to estimate affordable repayments.

Also Read: Understanding the Types & Structure of GST in India

What Happens If You Do Not File GSTR-5? Impact & Risks

Non-filing of the GSTR-5 can have serious repercussions for a non-resident taxpayer. The key consequences include:

• Blocking of Future Returns: The GST portal will not allow filing of returns for subsequent tax periods until the pending GSTR-5 is filed.
• Penalties and Interest: As detailed above, late fees and interest will continue to accumulate, increasing the financial burden.
• Loss of Compliance Credibility: Consistent delays can negatively affect your compliance rating and may attract scrutiny from tax authorities.
• Legal Risks: Continued non-compliance may result in legal action, including issuance of show-cause notices by the tax department.

Final Thoughts

For non-resident taxable persons, timely and accurate filing of the GSTR-5 return is a key requirement for operating in India. Understanding the format, due dates and potential penalties helps maintain compliance and avoid unnecessary costs. Proper management of the GSTR-5 filing process ensures that your business transactions in India are reported correctly and transparently.

However, unexpected GST liabilities, late fees, or working capital gaps can still impact your operations. Business Loan from Godrej Capital provides a seamless solution, offering quick funding with flexible tenures, minimal documentation, and competitive interest rates.

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FAQs

Q.1. Can GSTR-5 be filed offline?

A. The GSTR-5 return must be filed online through the official GST portal. No offline utility is available for this form.

Q.2. Is a digital signature mandatory for all non-resident taxpayers?

A. A Digital Signature Certificate (DSC) is mandatory for companies and Limited Liability Partnerships (LLPs). Other taxpayers can file the return using an Electronic Verification Code (EVC).

Q.3. What is the maximum penalty for failure to file GSTR-5?

A. The maximum late fee for not filing GSTR-5 is ₹5,000. In addition, interest at 18% per annum is applicable on the unpaid tax amount without any upper limit.

Q.4. Can I file GSTR-5 if I had no transactions in that month?

A. If a non-resident taxable person has no business transactions during a tax period, filing a nil GSTR-5 return is not required.

Q.5. What is the difference between GSTR-5 and GSTR-5A?

A. GSTR-5 is filed by non-resident taxable persons supplying goods or services in India. GSTR-5A is filed by non-resident providers of Online Information and Database Access or Retrieval (OIDAR) services to unregistered persons in India.

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