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What is GSTR 5?

June 15, 2021

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What is GSTR 5?

GSTR 5 is a GST document that has to be filed by a non-resident taxable person who carries out a business in India for a particular period. GSTR 5 filings could be done either online or via a tax facilitation center. The statement of GSTR5 contains the details regarding outward supplies like sales and inward supplies like purchases that were made and received by the non-resident taxpayer during the business transactions. From the above-mentioned details, you could get a clear-cut idea of what GSTR5 OR GSTR 5 mean. Now let us move to further details such as a non-resident taxable person, GSTR5 due date and filing, etc.

Who is a Non-resident Taxpayer? 

Non-resident taxpayers belong to the category of suppliers who do not own any business establishment in India and they have come here only for a short period to make supplies here. Such a non-resident taxable person should provide all tax supply details in GSTR5.

When to File?

In case the GSTR 5 return is filed for a period, less than 30 days, the return has to be filed within a week following the expiry of their GST registration. Otherwise, if their registration is extended over several months, it should be filed monthly before the 20th of the following month.

Prerequisites for Filing GSTR 5

  • If you are not a resident foreign taxpayer and you don’t have a business establishment in India, you need to file GSTR5.
  • Temporary registration is needed under GST for the period during which you carry out business in India.

Why is GSTR5  significant?

It contains all transaction details for non-resident foreign taxpayers that include the details of sales and purchases. GSTR5 information would be flowing onto GSTR 2 of the buyer.

When is GSTR 5 Due Date?

According to the GST act, Every 20th of the next month is the due date to file GSTR5. For example, the return of the month of November 2020 would be due on 20th December 2020. 

Non-resident Registered u/s 27 

It is a specific certificate of registration attached to a normal taxpayer or a non-resident taxpayer. This particular registration is of tentative nature and is valid for the tenure mentioned in the application or 90 days from the effective date of registration, whichever is earlier. Taxable supplies could be made by such persons only after the issuance of this specific certificate of registration. In such a scenario, the NR is to file GSTR 5 within 7 days after the last day of the tenure of registration.

What would Happen unless GSTR 5 is Filed? 

Since GSTR 5 monthly filing of the current month is pursuant to the next month, you cannot file next month’s return unless you fill it in the current month. Besides, late filing could cause heavy fines and penalties

What Happens if GSTR 5 is Filed Late?

Unless you file GSTR 5 in time, you are liable to pay interest and late fees for the delay. Interest for the delay is 18% per annum. It is to be calculated by the taxpayer based on the amount of outstanding tax to be paid. The time period for the interest would be starting from the next day of filing ( that is 21st of the month ) to the payment date. A late fee is Rs 50 and Rs 20 per day if the return is Nil. Rs 5000 is the maximum late fee.

What is GSTR 5A?

GSTR5A is for non-resident OIDAR service providers. OIDAR means Online Information and Database Access or Retrieval. This is to be filed on the GST portal for the services delivered from out of the country and it is offered to an unregistered person in India, other than a registered taxpayer or to the government.

Difference Between GSTR 5A and GSTR 5

Even though there is very little difference between GSTR5 and GSTR 5A, the common to both is that GSTR 5 is a return filing to be filed by Non-Resident Indians. It is to be filed on every 20th of the succeeding year.

As GSTR5A is a return filing form that is to be filed by Non-resident service providers or Online Information and Database Access or Retrieval (OIDAR) service providers who provide their online service in India and gain a return as a result.

Who is to file? It is to be filed by Taxable online information and database access or retrieval (OIDAR) service providers. It is to be filed by a non-resident taxable person who does not have a proper place of business or residence and he is here only for a short stint for supplies in India
Objective It is the details regarding the services offered to an unregistered person, government, or local authority Here, it is the details regarding inward and outward supplies by a non-resident taxable person
When to file Monthly basis Monthly basis at the time of registration of NRTP
Status of nil return Even when there is no business during a month, a nil return is to be filed mandatorily Here, nil return filing is not needed during the period other than at the time of registration
Deadline The final date for GSTR5A is the 20th of next month. The final date for filing GSTR5 is either 20th of next month or the 7th day after the last day of the period of registration. It depends on whichever is earlier.


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