GSTR-5

What Is GSTR-5?

The non-resident taxpayer must complete GST 5 return, tax return, for all of their inward & outgoing supplies. Filing GSTR 5 return, which includes all of non-resident India's company information, including sales & purchases, is crucial procedure.
Before delving deeper into meaning of GSTR 5, let's go back to fundamentals & clarify what non-resident foreign taxpayer is. non-resident taxable person is person who does any of following: 

• Is taxable individual residing outside of India;
• Comes to India temporarily to conduct transactions on occasion;
• Does not maintain fixed business site or establishment in India.
   

Why Is GSTR-5 Important?

Suppliers who come to India temporarily to make supplies but do not maintain commercial base there are considered non-resident foreign taxpayers. Such individual must provide information in GSTR-5 regarding all taxable supplies.
It will include all company information, including sales & purchase records, for non-residents (NR). Buyers' GSTR-2A & GSTR-2B will receive information from GSTR-5.

Who Should File GSTR-5?

• A non-resident who is subject to taxes & visits India briefly to conduct sporadic transactions
• A non-resident taxpayer who supplies OIDAR (Online Information Database Access & Retrieval) to Indian non-taxable entity & is registered with GST
   

Due Date for Filing GSTR-5

The GSTR5 return needs to be finished within week after GST registration expiration date. Should registration remain hidden for few more months, monthly return must be sent by 20th of each month. For instance, June 2022 GSTR 5 is due in July of that same year. 
Note: If non-resident registers under Section 27, special certificate granted to non-resident taxable person, registration is good for following periods: 
90 days from date of registration; or 
The duration indicated in application. 
Remember that after certificate of registration is granted, this person will only be entitled to make taxable supply. Within seven working days of last day of registration, non-residents are required to file GSTR-5.
 

Structure of GSTR-5 Form

The specifics of GSTR 5 format are as follows:

• GSTIN: Goods & Services Taxpayer Identification Number must be included in this column.
• Name of taxpayer, validity period of registration, & tax period: In accordance with GST law, registered taxpayer, who is authorized signatory for one's business, must provide their name in this area. Additionally, one must specify how long they are filling out GSTR 5.
• Inputs from International Sources: Records of all imported items, their HSN codes, & other relevant documentation, such as bills of entry, must be included in this area.  
• Services Imported: Information about any services imported from overseas vendors needs to be included in this area.
• Outward Supplies: Sales from suppliers are referred to as outward supplies. All of sales that have been made in India should be listed in this section. Each registered buyer's information should be included, along with their GSTINs. It is necessary to fill out CGST, IGST, & SGST data independently.
• Debit & Credit Note Details: All of credit & debit notes that have been brought up in association for person's business dealings in India should be included in this part. Under section 8A of GSTR 5 Act, credit & debit note details can be changed. 
• Tax Paid: Information on taxes paid under various GST components—SGST, CGST, & SGST—must be entered in this section.
   

Details Required for GSTR-5

The requirements to file GSTR 5 return are as follows:

• GSTR 5 filing is required of all taxpayers who are registered as non-resident taxpayers & possess valid GSTIN number.

In addition to working password & user ID, taxpayer should also have working digital signature that hasn't expired or been revoked.
 

Steps to File GSTR-5

• B2C invoices; 7A, 7B, & B2C small;
• Notes on credit & debit
• Notes for Unregistered Credit/Debit
• Amended Goods Import
• Updated External Supplies.
• Updated B2C Invoices, Both Large & Small.
• Modified Notes of Credit/Debit.-Corrected Unregistered Credit/Debit Notes.
• Click Preview after filling out information. This will cause Summary Page to download, which you should carefully go over.
• Select 10A & 10B tab to view specifics of your tax liability.
• After you're satisfied, select "Submit" next to E-Acknowledgment checkbox. data will freeze as result.
• "Total Taxable Value" that appears on your screen can then be paid.
• GSTR 5 Returns Filing will be shown when you click on File GSTR 5. GSTR 5 Status is now viewable for you.

GSTR-5 Late Filing Penalties

There will be steep penalty for failing to file return on time. In addition, taxpayer would not be permitted to file return for next month if they failed to file GSTR 5. 
There will be penalty of -18% annual interest on amount owed.

• Each month, time period begins on 21st, day after return is filed.
• There will be late fee of ₹50 per day if there is no return & ₹20 per day if there is.
• The maximum late fee that can be assessed is ₹5,000.
   

Conclusion

GSTR-5 filing is essential part of Indian GST compliance for non-resident taxpayers. GSTR-5 form must be submitted via GST portal by specified GST return due dates. Ensure your GST registration is up to date for accurate GSTR-5 online filing. Timely GST return submission is crucial to avoid penalties & stay compliant with regulations.