The Goods and Services Tax was introduced to integrate multiple taxes into one comprehensive GST and make compliance easy for the taxpayers. It also eliminated the cascading effect on taxes consumers. With the economy of India growing at an accelerated pace, participation of non-residents in trade like supply of goods and services in our country has increased. All businesses are required to register under GST and to file GST returns as specified under the law. The returns vary depending on the type of business. Non-resident businesses are required to register under GST before commencement of their business in India and must file returns in form GSTR-5 within the specified due dates. Here we discuss what details are required in GSTR-5 for non-resident taxpayers.
Features of GSTR-5
- GSTR-5 is a monthly return which is required to be filed by non-resident taxpayers who carry out business transactions in India
- Non-resident taxpayers are those businesses who do not have a fixed place of business in India and carry out their business temporarily for a particular period of time.
- GSTR-5 can to be filed online on the GST portal or through a facilitation center.
- The details of inward and outward supplies are submitted by the non-resident taxpayer in form GSTR-5
- Tax liability including penalty, fees, interest and any other charges must be paid before filing the return.
Due Date and Penalties for Late Filing of GSTR-5
The due date for filing the monthly GSTR-5 is the 20th of the succeeding month. When the registration is for a specific period, then the return has to be filed within 7 days after the expiry of registration. The consequences of late filing of the return is late fee of Rs.50/- per day, Rs.20/- for Nil returns, up to a maximum of Rs.5000/-, and interest at 18% per annum calculated on the number of days from the due date up to the date of filing the return. For non-payment and non-filing the penalty is that the taxpayer will not be allowed to file returns of the next month unless the return of the current month is filed.
Details Required to File GSTR-5
GSTR-5 has to be filed by logging in the GST portal with the user id and password. The return has 14 sections. The following details are required in the GSTR-5 while filing the return:
- GSTIN: It is the Goods and Services taxpayer identification number. It is a 15-digit number. It is auto populated when the taxpayer logs into the GST portal with his user id and password.
- Name: Legal and trade name of the non-resident taxpayer who owns a business outside India and who supplies the goods and services in India. This field is auto-populated after login.
Address: The address of the taxpayer is auto-populated.
Month/Year: The relevant month and year for which the return is filed should be selected by taxpayer.
- Details of Taxable Supplies: Details of inputs/capital goods imported into India from the foreign country should be mentioned in this section.
- Amendments in Detail of Earlier Returns: Changes about goods received of an earlier period should be updated in this section.
- Outward Taxable Supplies to Registered Persons: This section consists of the invoice wise details of B2B supplies in India and that includes supplies made to UIN holders. The details should include IGST/CGST/SGST and Cess.
- Outward Taxable Interstate Supplies to Unregistered Persons Where Invoice Value is More than 2.5 lakhs: In this section the details of Business to Consumer (B2C) large sales or interstate supplies by a registered person to unregistered person in which supplies value is more than 2.5 lakhs is shown.
- Taxable Supplies (net of debit notes and credit notes) to Unregistered Persons: This section deals with the details of taxable supplies less than 2.5 lakhs from a registered person to unregistered persons. State wise interstate supplies have to be provided in a summarized manner.
- Amendments to taxable Outward Supplies for Earlier Periods of sections 5 and 6 (including debit notes/credit notes and amendments thereof): Modifications in B2B and B2C from the previous tax periods have to be updated here. Modifications to invoices and debit/credit notes issued are also shown in this section. In case of revisions, original details have to be noted.
- Amendments to Taxable Outward Supplies to Unregistered Persons Furnished in Returns for Earlier Tax Periods: Modifications made in B2C sales where supplies are made by a registered person during the previous tax periods must be updated, in this section. Interstate sales are summarized state wise in a consolidated way.
- Total Tax Liability: The total tax liability is auto populated from the above information, in this section. The liabilities under IGST, CGST and SGST are separately shown.
Read More: GSTR-5: Everything You Need to Know
There is a subheading which shows the tax liability details for outward supplies for the present month.
There is a section for the additional tax to be paid owing to reversal of input tax credit (ITC) due to changes in imports during the previous months are shown.
- Tax Payable and Paid: The next section shows the details of total tax to be paid under IGST/CGST/SGST during the month. The information is auto-populated from the above sections. The taxpayer can make payment through the electronic cash ledger.
- Interest, Late Fee, and other Amounts Payable and Paid: The amount of interest wants, late fee and any other amount payable under CGST/IGST/SGST due to late return filing are shown in this section.
- Refund Claimed under Electronic Cash Ledger: In this section, the details of all refund amounts received in the electronic cash ledger are reflected. The taxpayer has to choose the bank account in which he to receive the refund. The field is auto-populated if any refund amount is received from the electronic cash ledger.
- Debit Entries in Electronic Cash Ledger: The next section shows the debit entries in the electronic cash ledger. It is auto-populated when the tax is paid and returns are submitted.
Payment of Tax
In the form GSTR-5, when the taxpayer clicks on the option ‘Payment of Tax’, the tax liabilities along with credits gets updated in the electronic ledgers and shows in the ‘tax payable’ column of the payment section and the updated balance is shown. Then when the taxpayer clicks the ‘offset liabilities’ option, the tax liability is offset and the taxpayer gets the confirmation message.
GSTR-5 can be filed only after payment of tax, including interest, late fee, penalty, and any other amount due from the taxpayer. In the last section of the above filing process, when the taxpayer clicks the ‘File GSTR-5’ option and the authorized signatory verifies the return, the GSTR-5 is filed and the status of GSTRN-5 changes to ‘filed’. The taxpayer gets the acknowledgement in his email and a successful filing message in his mobile. When he again accesses the ‘File Return’ page and selects the relevant return filing period, the status of GSTR-5 returns shows ‘filed’.
Non-resident taxpayers registered in GST and conducting business in India are required to file GSTR-5 and pay tax within the specified due dates. If the businesses do not comply with the procedures of filing and payment of tax on time, they may incur penalties like late fees and interest and other complications. Therefore, it is crucial for taxpayers to understand the details required for filing the mandatory return and be prepared with all the information before the due date of filing. It is always safer to seek professional guidance when in doubt.
Frequently Asked Questions
- What is meant by taxable supplies?
Answer: Goods and services that are subject to GST are called taxable supplies. This includes all types of supplies such as sales, services or both.
- Can GSTR-5 be revised?
Answer: Yes, GSTR-5 can be revised for errors and omissions within one month of filing the original return.