GSTR 5 - Return for non-resident taxpayer

GSTR 5 is a return for all non-resident taxpayers to file the details of their outward & inward supplies.

• What is GSTR 5?
• When to file GSTR-5?
• Prerequisites for filing GSTR-5
• How to file GSTR 5

What is GSTR 5?

The Goods and Services Tax Return 5 is a document/statement that has to be filed by every registered non-resident taxable person for the period during which they carry out businesses transactions in India. This can either be done online or from a tax facilitation centre. This document must contain the details of all outward supplies (e.g.: sales) and inward supplies(e.g.: purchases) made and received by the taxpayer.

When to file GSTR-5?

• This return is to be filed within a week following the expiry of their GST registration (if the return is filled for a period less than 30 days) or to be filed monthly before 20th of the following month if their registration extends over a period of several months.

Prerequisites for filing GSTR-5

• In-order to file the GSTR-5:
  • You have to be a non-resident foreign taxpayer who does not have a business establishment in India.
  • You need a temporary registration under GST for the period during which you will carry out business in India.

How to file GSTR 5

The GSTR 5 format consists of a wide range of information about a non-resident taxpayer’s inward and outward supplies. Let’s take a look at each section in detail.

1. GSTIN – Here you have to specify your unique PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).
2. Name of the Taxpayer – This field should contain the name of the registered tax payer (who is also the authorised signatory under the GST law) for your business.
3. Address – This section will contain the address that you have provided for the registration.
4. Period of Return – Specify the period for which you are filing the GSTR-5 here.
5. Goods Imported –
   • Here, you are required to record the details of all goods (with their 8 digit HSN codes) that you have imported into India along with all the relevant documents (such as the bill of entry).
   • Under the Section 5A of GSTR-5, you can amend/update any changes made to the documents that you have filed earlier (such as previous bills of entry). While you are at it, you as the non-resident foreign taxpayer, is also required to furnish details of the original bill of entry that have now been amended by you.
6. Import of Services –
   • Here, you are required to record the details of all services that were imported by you from other foreign suppliers who are also taxable under GST.
   • Under Section 6A of the GSTR-5, you can amend/modify the details of services that have been imported by you during previous tax periods.
7. Outward Supplies made –
   • Here, you are required to furnish details of all sales and outward supplies that you have made in India during the period of this tax return. While you are at it, remember to specify the details of all registered buyers along with their GSTINs. Also, please track different components of GST - namely, CGST, SGST and IGST separately
   • Any modification to the details of sales/outward supplies that have been previously filed by you can be made under Section 7A of the GSTR-5.
8. Details of Credit/Debit Notes –
   • Here you have to record the details of all credit notes and debit notes that you have raised in association with the business transactions that you have carried out in India.
   • You can modify/amend the details of credit/debit notes that you have filed at earlier instances by using Section 8A of GSTR-5.
9. Tax Paid – Under this section, you can record the details of the tax paid for this tax period under different GST components; CGST, SGST and IGST. The tax liability for this can be calculated based on the data provided by you under the above sections.
10. Closing Stock of Goods – Here, you have specify the details of your closing stock for this tax period.
11. Refund Claimed from Cash Ledger – This section will contain the details of all refunds that you have received into the bank account from the electronic cash ledger (a ledger that needs to be maintained by every taxable person for paying taxes according to the the amount they owe as taxes for that period).