GSTR-5: A Complete Guide for Non-Resident Taxable Persons in India

Navigating the intricacies of Goods and Services Tax (GST)  in India involves understanding various return forms tailored to different types of taxpayers. For individuals or entities who are non-resident taxable persons making taxable supplies in India, GSTR-5 is a crucial monthly return that needs to be filed. This comprehensive article will break down everything you need to know about GSTR-5, including its purpose, who is required to file it, the applicable due dates, the step-by-step online filing process, and the penalties for delayed filing. We will also incorporate examples to illustrate key concepts.  

What is GSTR-5?

GSTR-5 is a monthly return specifically designed for non-resident taxable persons who conduct business transactions in India and are registered under GST. A non-resident taxable person is any person who occasionally undertakes transactions involving the supply of goods or services or both in India but who has no fixed place of business or residence in India. This return essentially captures the details of their outward supplies, inward supplies, and the taxes paid during a specific month.  

Who Should File GSTR-5?

Any individual or entity meeting the following criteria is required to file GSTR-5:

• They are registered as a non-resident taxable person under GST in India.
• They have made taxable supplies of goods or services in India during the relevant tax period (month).

Example:

Ms. Emily, a fashion designer residing in the USA, occasionally participates in fashion exhibitions in India and sells her creations. She has obtained GST registration as a non-resident taxable person for her business activities in India. Therefore, Ms. Emily is required to file GSTR-5 every month in which she makes taxable supplies in India.

Due Dates for Filing GSTR-5

The due date for filing GSTR-5 is the 20th day of the month following the tax period (the month for which the return is being filed).

• For example, the GSTR-5 for the month of April 2025 is due on May 20, 2025.

It is imperative for non-resident taxable persons to adhere to these deadlines to avoid penalties and maintain compliance.

How to File GSTR-5 Online: Step-by-Step Guide

GSTR-5 must be filed electronically through the GST portal. Here’s a detailed guide to the online filing process:  

1. Access the GST Portal: Navigate to the official GST portal: www.gst.gov.in.
2. Login: Enter your valid username and password to log in to your GST account.
3. Go to Returns Dashboard: Once logged in, go to Services > Returns > Returns Dashboard.
4. Select Financial Year and Return Filing Period: Choose the relevant Financial Year from the dropdown menu and select the specific month for which you are filing the return. Click Search.
5. Click on Prepare Online: Under the GSTR-5 section, click on the Prepare Online button.
6. Fill in the Required Details: You will be directed to the online form where you need to provide information in the following sections:
   • Details of outward supplies made to registered persons (including deemed exports): Report all taxable supplies made to GST-registered businesses in India.
     • Example: Ms. Emily sold goods worth ₹50,000 to a registered boutique in Delhi during April 2025. This sale will be reported here.

• Details of outward supplies made to unregistered persons: Report all taxable supplies made to consumers and other unregistered individuals or entities in India.
  • Example: Ms. Emily sold goods worth ₹30,000 to individual customers at the fashion exhibition in Mumbai during April 2025. These sales will be reported here.
• Details of inward supplies received: Provide details of all purchases made in India, including those from registered and unregistered suppliers.
  • Example: Ms. Emily purchased raw materials worth ₹10,000 from a registered supplier in Jaipur during April 2025. This purchase will be reported here.
• Tax payable and paid: This section will display the calculated tax liability based on the outward supplies and any input tax credit available on inward supplies. You will need to pay any remaining tax liability.
• Refund claimed from electronic cash ledger: If applicable, you can claim a refund of any balance in your electronic cash ledger.

1. Review the Information: Carefully review all the entered details for accuracy before proceeding.
2. File the Return: Once you are satisfied, click on the File Return button.
3. Submit with DSC or EVC: You can file your GSTR-5 using either a Digital Signature Certificate (DSC) or by using Electronic Verification Code (EVC) generated through OTP on your registered mobile number and email ID (if applicable).  

Details to be Furnished in GSTR-5

The GSTR-5 form requires non-resident taxable persons to furnish the following information:

• Details of Outward Supplies to Registered Persons: This includes the GSTIN of the recipient, invoice details (number, date, value), and the applicable tax rates (CGST, SGST/UTGST, IGST) for supplies made to other GST-registered businesses.  
• Details of Outward Supplies to Unregistered Persons: This includes the place of supply, invoice details, and the applicable tax rates for supplies made to unregistered individuals or consumers.  
• Details of Inward Supplies Received: This includes details of purchases from both registered and unregistered suppliers, along with the applicable tax paid (including tax paid under reverse charge, if any). This information is used to claim Input Tax Credit (ITC), subject to the relevant rules.
• Tax Payable and Paid: This section calculates the total tax liability for the month based on the outward supplies. It also shows the amount of Input Tax Credit (ITC) availed and the net tax payable, which needs to be paid before filing the return.
• Refund Claim: If there is any balance in the electronic cash ledger, the non-resident taxable person can claim a refund in this section.

Late Filing Penalty for GSTR-5

Failure to file GSTR-5 within the stipulated due date attracts penalties. As per the current GST regulations, the penalty for late filing of GSTR-5 is ₹100 per day under CGST and ₹100 per day under SGST/UTGST, for each day of delay. The total penalty can go up to a maximum of ₹5,000 under CGST and ₹5,000 under SGST/UTGST, totaling ₹10,000. Additionally, interest may also be applicable on the outstanding tax liability.  

Importance of Filing GSTR-5 Correctly and on Time

Timely and accurate filing of GSTR-5 is crucial for non-resident taxable persons for the following reasons:

• Compliance with Indian GST Laws: It ensures adherence to the GST regulations in India, which is mandatory for conducting business.  
• Avoidance of Penalties and Interest: Filing before the due date helps in avoiding late filing penalties and interest on any outstanding tax.  
• Smooth Business Operations: Compliance with GST regulations facilitates smooth business operations in India without legal hassles.  
• Claiming Input Tax Credit: Accurate reporting of inward supplies allows for the legitimate claiming of Input Tax Credit (ITC), reducing the overall tax burden.

Key Takeaways

• GSTR-5 is a monthly GST return for non-resident taxable persons in India.  
• The due date for filing GSTR-5 is the 20th of the month following the tax period.  
• The return must be filed online through the GST portal.  
• It captures details of outward and inward supplies and taxes paid.  
• Late filing attracts penalties.  
• Accurate and timely filing is essential for compliance and claiming ITC.  

Understanding the requirements and procedures for filing GSTR-5 is vital for non-resident taxable persons conducting business in India. By adhering to the regulations and ensuring timely and accurate filing, they can maintain compliance and focus on their business activities. Always refer to the latest updates and notifications from the GST department for any changes in the rules.