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GSTR5 Return Filing, Format, Eligibility & Rule

Introduction

Up until now, we have been discussing and understanding the various strands of GST on its registered members; People under the business and influence of income inward and outward reflecting into the monetary calculations for tax purposes.

To extend the clarifications of the role played by NRI whose income is valued under our taxonomy guidelines, GSTR5 was introduced.

What is GSTR – 5?

The GSTR-5 form is a monthly return form required to be furnished by every registered non-resident taxable person at the GST Portal. Non-resident taxable persons are those suppliers, who do not have a business establishment in India and have come to India for a short period of time to make supplies.

How does it work?

TO understand the GSTR – 5 process, we need to understand the concept of registration for the non-resident foreign taxable person.

Under Section 27 of the GST rules, the specified non-resident individual classified as taxable is required to register under a special certificate. The period of registration is temporary and is valid for the period 90 days or that which is mentioned in the registration (whichever is earlier). One the certification is issued, the individual can make taxable supplies.

When is the GSTR – 5 last date?

Thus a non-resident taxable person, registered as such is required to file GSTR-5 form:

  • By the 20th of every succeeding month
  • Within 7 days from the last day of the period of registration (83rd Day)

In case of failure ?

If the GSTR-5 return filing is not done, then the next month’s return cannot be filed. Hence, late filing of the GSTR-5 return will have a cascading effect leading to heavy fines and penalty.

What if GSTR – 5 filing is done late?

Late filing of GSTR-5 returns will lead to interest and late fees.

The interest is 18% per annum on the amount of outstanding tax to be paid. The time period will start from the next day of filing i.e. the 21st of the month to the date of actual payment.

The late fees are INR 100 per day for CGST and INR 100 per day for SGST i.e. a total of INR 200 per day – till a maximum is INR 5,000. There are no late fees however on IGST.

 

GSTR – 5 Formats

GSTR-5 will contain all the business details for non-resident taxable persons, including the details of sales purchases, Debit and Credit notes, inputs and capital goods received from overseas etc.

How to file GSTR – 5

The following are the details to be provided in the GSTR-5 form, spread across 14 tables:

  • GSTIN: Here, the taxpayer should provide his GSTIN. Provisional ID can also be provided if GSTIN is not available.
  • Taxpayer Details: 3 fields, namely – the legal name of the taxpayer, trade name of the business and the validity period of registration – will be auto-populated.
  • Value of Import Goods: The non-resident taxable person must report his inputs and capital goods imported into India. Details of bill of entry along with the rate of tax, IGST, Cess paid and amount of ITC available, should also be provided. Please note that a non-resident taxable person will only have import inward supplies i.e. Purchases.
  • Amendment in the details furnished: In this section, the non-resident taxable persons can change any details in imports furnished in earlier returns. The changes can be made in:
  • Bill of Entry (Both original and revised details of bill of entry must be given)
  • Rate of IGST
  • Taxable value
  • Amount of IGST & Cess
  • Amount of ITC now available
  • Differential amount of ITC (excess of this will be reversed and vice versa)
  • Taxable outward supplies made: This section will contain the invoice wise details of B2B sales in India, including sales made to UIN (Unique Identification Number) holders. The details of IGST or CGST & SGST and Cess along with the State, must be provided.
  • Taxable outward to unregistered persons: This section will contain the details of all large B2C inter-State sales made to unregistered persons, where the invoice value is greater than INR 2.5 lakhs.
  • Taxable supplies of net debit notes and credit notes to unregistered persons: Apart from the one mentioned in Table 6, this section will contain details of sales to unregistered dealers (both intra-state and inter-State), where the invoice value is less than INR 2.5 lakhs. Intra-state sales can be mentioned in a consolidated summary, whereas inter-state sales must be mentioned state-wise.
  • Amendments to taxable outward supply details furnished: This section will contain any changes in details furnished in previous months. Original debit notes and credit notes issued during the month will be furnished here. Amendments to invoices, debit notes and credit notes issued will also appear here. In case of revisions, original details will have to be mentioned.
  • Amendments to Table 7: This section will contain changes in details of sales of previous months (originally disclosed in Table 7). Intra-state sales can be mentioned in a consolidated summary, whereas inter-state sales must be mentioned state-wise.
  • Total Tax Liability: On account of outward supply: Details of tax liability for outward supplies for the current month.

On account of differential ITC being negative in Table 4: Details of additional tax to be paid due to reversal of ITC (i.e. differential ITC being negative) on making changes in any imports of earlier months as per Table 4

  • Tax Payable and Paid: This section will have the details of tax actually paid during the month. Breakup of IGST, CGST, SGST & Cess will be shown. The taxpayer can opt to pay through cash or use ITC.
  • Interest, late fee and any other amount payable and paid: This section will contain details of interest and late fees due and actually paid on account of late filing of return.
  • Refund claimed from E-cash ledger: This section will contain the details of all refunds received into the electronic cash ledger. There is a dropdown to select in which bank account the non-resident taxable person wants to receive the refund.
  • Debit entries for tax/interest payment: This will show the debit entries in the electronic cash ledger, i.e. cash outflow for payment of tax/interest/late fee. It is populated after payment of tax and submissions of return.

Find Your GSTR5 Form here:GSTR-5