What is GSTR-5 and How to File It on GST Portal?

As the world opened its doors to globalization, businesses began to cross borders like never before. Today, owing to this, India, as the world’s fourth-largest growing economy, has become a hotspot for international trade and investment.

However, a world without borders does not necessarily have to be one without taxes. As is the case with non-resident foreign taxpayers doing business in India. For them, it is imperative to be compliant with the Goods and Services Tax (GST), and that starts with a special return, namely GSTR-5.

Therefore, for you, as an exhibitor in an Indian trade fair, a consultant serving Indian clients, or a cross-border brand that has new markets to enter, learning about Form GSTR-5 is the way to ensure compliance and prevent fines. Let’s then explore what GSTR-5 is, who needs to file it, and how to do it right, right away…

GSTR-5 Meaning: What is GSTR-5?

GSTR-5 is a monthly GST return that should be filed by all non-resident taxable persons (NRTP) who have an ongoing business in India. As opposed to normal GST returns, the GSTR-5 return is customized to suit foreign companies and individuals that lack a permanent establishment in India but supply goods or services here.

The GSTR-5 format records all transactions related to imports, sales, purchases, tax payments, etc., making accounting transparent.

Who Should File GSTR-5?

Form GSTR-5 return filing is mandatory for people registered as non-residents under GST. They need to file it for every month they conduct business in India.

As such, the following set of people should file GSTR-5…

• Foreign companies or individuals supplying goods or services in India without a fixed business establishment
• Overseas exhibitors taking part in Indian trade fairs or exhibitions
• Foreign professionals offering short-term services in India
• Global brands launching products in India on a temporary basis

Who is a Non-Resident Foreign Taxpayer?

For the unversed, a non-resident foreign taxpayer is defined as…

• Any person or business entity without a fixed place of business or residence in India,
• Who supplies goods or services in India?
• And has obtained a temporary GST registration for the period of business activity.

This could be a company, partnership, or individual from outside India who comes to India for a limited period to perform business.

GSTR-5 Due Date: When to File GSTR-5 Return?

The GSTR-5 due date falls on the 13th of the month succeeding the relevant tax period. If you, say, perform business in India in June, your GSTR-5 due date would be July 13th. This short deadline ensures the government gets timely access to return data filed by non-resident taxpayers, making tax administration effective.

Why is GSTR-5 Important?

There are sundry reasons as to why GSTR-5 poses itself is an important return. Some of the reasons are listed below for your understanding…

1. Legal Compliance: GSTR-5 is a compulsory form to file in India as per the GST policy. Failure to comply with it may attract huge fines, legal hitches, and in some cases, even cancellation of the GST registration.

2. Transparency & Trust: GSTR-5 contains a clear transcript of all your transactions, allowing your India buyers to reclaim their Input Tax Credit (ITC), all while maintaining a positive reputation for your business.

3. Access to Input Tax Credit (ITC): Non-resident taxpayers who have paid GST on imports and purchases get to claim ITC by filing Form GSTR-5, which results in a lower tax liability.

4. Government Revenue: GSTR-5 makes sure that foreign businesses pay the appropriate amount of tax to the government and thus leveling the playing field for all businesses.

5. Smooth Business Operations: Proper and prompt GSTR-5 return filing aids in avoiding delays, interruptions, and disputes with Indian business associates and authorities.

How to File GSTR-5 Return on the GST Portal?

Here’s a step-by-step guide for seamless GSTR-5 return filing…

Step 1: Collect GSTIN, sales and purchase invoices, import documents, debit/credit notes, and previous returns.

Step 2: Visit gst.gov.in, enter your GSTIN, username, and password.

Step 3: Go to Services > Returns > Returns Dashboard. Select the relevant financial year and month.

Step 4: Click on GSTR-5 and then ‘Prepare Online’ to open the return form.

Step 5: Click the ‘Generate GSTR-5 Summary’ button.

Step 6: Enter data as per the required sections (refer to the GSTR-5 format table given below).

Step 7: Upload invoice details. It should be invoice-wise for B2B and B2C Large, and in the form of a combined summary for B2C Others.

Step 8: Use Amendment Tables to make corrections in the previous returns, if required any.

Step 9: Once you have entered all the details, click on the ‘Preview’ button to double-check all entries for accuracy.

Step 10: Go to the ‘Payment of Tax’ section.

Step 11: Click ‘Check Ledger Balance’ to view the available ITC and cash ledger.

Step 12: Use ‘Offset Liability’ to pay dues. Apply ITC first (if available) and use cash for any remaining amount.

Step 13: Acknowledge and submit the return. Your GSTR-5 status will change to ‘Submitted’ post submission.

Step 14: Finally, complete the filing GSTR-5 return filing process with a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Step 15: Download and save the filed return acknowledgment for your records.

GSTR-5 Format: Details to be Provided in GSTR-5

The table below simplifies the GSTR-5 format for those looking to file the said return…

Sr. No.	Table Name	Details to be Provided
1	GSTIN/Provisional ID	15-digit GSTIN or Provisional ID if GSTIN not issued
2	Name, Trade Name, Validity Period	Legal name, trade name, and registration validity (auto-populated)
3	Month, Year	The period for which GSTR-5 is being filed
4	Inputs/Capital Goods Imported	Bill of Entry number, date, value, IGST, cess paid, ITC available
5	Amendments to Imports	Corrections to earlier import details; both original and revised Bill of Entry
6	Outward Supplies to Registered Persons (B2B & UIN)	Corrections to earlier import details, both original and revised Bill of Entry
7	Outward Inter-State Supplies to Unregistered Persons (Invoice > ₹2.5 lakh)	Invoice-wise details for high-value B2C inter-state sales
8	Outward Supplies to Unregistered Persons (B2C Others)	Consolidated intra-state and state-wise inter-state sales < ₹2.5 lakh
9	Amendments to B2B and B2C Large Invoices	Corrections to previous months’ B2B/B2C Large sales, debit/credit notes
10	Amendments to B2C Others	Corrections to previous B2C Others sales, intra/inter-state
11	Total Tax Liability	Tax due for current month, including adjustments for ITC reversals
12	Tax Paid	Tax paid via cash or ITC, breakup of IGST, CGST, SGST, Cess
13	Interest, Late Fee, Other Amounts	Details of interest and late fee due/paid for late filing
14	Refunds and Debit Entries in Cash/Credit Ledger	Refunds received, bank account selection, and debit entries for payments

What Happens If GSTR-5 Return Is Not Filed?

Non-filing of GSTR-5 can have serious consequences. All the major ones are listed below for your convenience…

• A GSTR-5 late fee of INR 50 per day (INR 20 per day for NIL returns) is levied, plus 18% annual interest on outstanding tax dues.
• Your Indian buyers may lose eligibility to claim ITC, damaging business relationships.
• Recurring non-compliance can lead to cancellation of GST registration and other legal actions.
• Non-compliance can also halt your business activities in India, affecting revenue and reputation.

What Happens if GSTR-5 is Filed Late?

Late filing of GSTR-5 attracts…

• As stated before, a GSTR-5 late fee of INR 50 per day (INR 20 per day for NIL returns), calculated from the due date until the actual filing date.
• An interest of 18% per annum on any outstanding tax liability.

How to Revise GSTR-5?

At present, GSTR-5 cannot be revised directly after being submitted. However, in case you realize an error was made and want to rectify it, you can do so by entering the correct details in the amendment section of the next month’s GSTR-5. Through this process, nothing slips under the radar and remains unaccounted for.

Common Mistakes to Avoid While Filing GSTR-5

Keep the following things in mind in order to avoid making GSTR-5 return filing mistakes…

• Don’t miss the GSTR-5 Due Date: Always file by the 13th to avoid penalties.
• Incorrect Invoice Details: Errors in invoice numbers, values, or HSN codes can lead to compliance issues.
• Not Reporting Amendments Properly: Use the correct amendment tables for corrections.
• Overlooking Eligible ITC: Don’t miss out on claiming input tax credit for imports and purchases.
• Failing to Digitally Sign: An unsigned return is considered not filed.
• Ignoring GSTR-5 Late Fee/Interest: Not calculating and paying late fees or interest can lead to further penalties.
• Improper Data: Make sure that all fields of the GSTR-5 format are filled out properly.

Suggested Read: For more information on GSTR-5A, refer to our blog on GSTR-5A

What is the Difference between GSTR-5 and GSTR-5A?

GSTR-5 and GSTR-5A are both monthly GST returns, but they differ in the sense that they get applied to different types of non-resident taxpayers. While GSTR-5 is for non-resident taxable persons supplying goods or services in India, GSTR-5A is specifically for OIDAR service providers without a physical presence in India.

Here, take an in-depth look at how GSTR-5 and GSTR-5A differ from each other…

Feature	Form GSTR-5	GSTR-5A
Who Files	Non-resident taxable persons (NRTPs) supplying goods/services in India	Non-resident OIDAR (Online Information and Database Access or Retrieval) service providers
Nature of Supplies	Goods and/or services	Online information and database access or retrieval services (electronic services)
Place of Business	No fixed place of business in India; temporary registration	No physical presence in India; provides services online
Registration Type	Temporary GST registration	OIDAR-specific GST registration
Return Frequency	Monthly	Monthly
Due Date	13th of next month	20th of next month
Nil Return	Not mandatory	Mandatory if no supply
Input Tax Credit	Can be claimed and utilized	Not available
Amendments	Allowed in subsequent returns	Allowed in subsequent returns
Applicable Sections	Imports, B2B, B2C, amendments, tax payment, ITC	Only details of services provided and tax paid
Filing Mode	GST Portal or GST software like TallyPrime or Clear GST	GST Portal or GST software like TallyPrime or Clear GST

Conclusion

GSTR-5 return filing is not only a legal necessity, but your ticket to hassle-free business in India. By understanding the GSTR-5 meaning and adhering to the GSTR-5 due date, non-resident foreign taxpayers can maintain transparency and smooth business operations.

So, what are you, as an NRTP, waiting for? Let GSTR-5 return filing be a routine part of your India strategy and watch compliance work to your advantage today and forever!

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