GSTR 5 is a return which every non-resident individual has to file under the GST portal. GSTR 1,2,3 are the returns which were to be filed by resident individuals. But those non-resident individuals who do not stay permanently, but plan on commencing any business in India have to file their returns under GSTR 5 on the GST portal.
Who is a non-resident under GSTR 5?
Section 2(77) of the Central Goods and Services Act, 2017 (‘CGST Act’) defines NRTP as: “non-resident taxable person” means ‘any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India’.
Filing of GSTR 5 is important as it contains all the information regarding the purchases and the sales of the non-resident taxpayer. The information provided in GSTR 5 will flow from GSTR 5 to GSTR 2.
When is the due date of filing GSTR 5 returns?
The non-resident under GSTR 5 has to file returns within the stipulated time period only. The returns have to be filed before or within the 20th of the next coming month. One final return has to be submitted by the non-resident tax payer before 7 days from the date of expiry of registration for final assessment of tax period which is of 90 days.
Late payment or nonpayment of GSTR 5
In case where the non-resident under GSTR 5 fails to pay GST within the stipulated time period, the non-resident individual cannot pay GST for the coming month as well. Thus, nonpayment of GSTR 5 may lead to the non-resident under GSTR 5 to face a number of fines and penalties.
In case where the non-resident under GSTR 5 delays the payment of GSTR 5 i.e. he pays the GST after the expiry of the stipulated time period, then the non-resident taxpayer has to pay along with the GST actually payable late fee and also interest. The interest that the taxpayer has to face is to be calculated at the rate of 18% per annum on the tax which is to be payable i.e. the outstanding tax which is yet to be paid. The time period for payment of the interest and late fees is the next day of the payment of GSTR 5 returns i.e. the 21st day of the month.
The late fee to be paid is Rs. 200 per day of delay. The bifurcation of Rs. 200 is Rs. 100CGST and Rs. 100 SGST. The maximum amount of late fee that can be paid by a non-resident under GSTR 5 at one time is Rs. 5000/-
According to the latest updates on 7th March,2018 the late fee for filing of GSTR 5 after the due date is lowered down to Rs. 50 per day of default and for filing of nil return , any delay will result in payment of Rs. 20 per day of default. But, any delay in filing GSTR 5A will remain Rs. 200 as shown above.
Details to be mentioned in GSTR-5 returns
The government has suggested 14 heads under GSTR 5:
The non-resident under GSTR 5 has to provide his GSTIN. In case he doesn’t have a GSTIN he can also use a Provisional ID.
2. Name of the Taxpayer
The Name of the non-resident taxpayer including his legal and trade name will be auto-populated.
Validity period of registration– The validity period of filing of the return will also be auto-populated.
Month, Year – The taxpayer has to mention the relevant month and year for which GSTR-5 is being filed.
3. Inputs/Capital goods received from overseas i.e.Import of goods
The Non-Resident have to provide inputs and capital goods imported into India from outside along with the details of bill of entry and rate of tax, cess paid , IGST paid and credit available.
4.Changes in the details furnished in any earlier return
In this section, the Non-Resident taxpayer may change any details in imports furnished in earlier returns if he wishes to.
Changes can be made in any of the following things-
- Bill of entry,
- Rate of IGST,
- Taxable value,
- Amount of IGST & Cess,
- Amount of Credit now available
- Differential amount of ITC i.e. if excess will be reversed and vice versa
Note: it is necessary that Both Original and Revised Details of Bill of Entry have to be provided.
5. Taxable outward supplies which are made to registered persons including UIN holders
This will held invoice wise details of B2B sales in India including sales to UIN holders also.
Details of IGST/CGST & SGST & Cess with State must be provided.
6. Taxable outward inter-State supplies to an un-registered persons where invoice value is more than Rs 2.5 lakh
This will held all details of B2C Large sales, i.e., inter-state sales where invoice value is greater than Rs.2.5 lakhs to an unregistered person.
7. Taxable supplies which is net of debit notes and credit notes, to unregistered persons other than the supplies mentioned under Table 6
This will held details of sales to unregistered dealers (B2C Others) of Both intra-state and inter-State sales less than 2.5 lakhs have to be mentioned.
8. Changes in taxable outward supply details furnished in returns for earlier tax periods in Table 5 and 6 including debit note/credit notes and changes thereof
This will held any amendments in details of B2B and B2C Large of any last months.
Original debit and credit notes issued during the month will be furnished here.
Changes in invoices and debit & credit notes issued will also appear here. In case of improvisation, original details have to mentioned.
9. Changes in taxable outward supplies to unregistered persons furnished in returns for Earlier tax periods in Table 7
This will held changes in details of B2C sales of last months which are originally disclosed in Table 7.
10. Total Tax Liability
This will show the total tax liability.
A.Outward supply: This subheading will held details of tax liability for outward supplies for the current month.
B. Differential ITC being negative in Table 4:This will held the additional tax payable due to reversal of ITC (i.e., differential ITC being negative) on making any changes in any imports of previous months (Table 4).
11. Tax payable and paid
This will have the details of tax non-resident under GSTR 5 is actually paying during the month.
Bifurcation of IGST, CGST, SGST & Cess will be shown. The taxpayer can pay through cash or use balance ITC.
12. Interest, late fee and any other amount paid and to be paid
This will held details of interest and late fee payable and actually paid on account of late filing .
13. Refund claimed from electronic cash ledger
This will held the details of all refunds received into electronic cash ledger.
14. Debit entry in electronic cash/credit ledger for tax/interest payment which to be populated after payment of tax and submissions of return
This will show debit entries in electronic cash ledger, i.e., cash outflow for payment of tax/interest/late fee. It will be populated after the payment of tax and submissions of return.
Finally, authorized signatory will verify the return. Authorized signatory is a representative of the Non-Resident under GSTR 5 and must be a person who is a resident in India with a valid PAN.
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