GSTR-5: An In-Depth Guide for Non-Resident Taxable Persons
Explore the complexities of GSTR-5 filing, eligibility criteria, and critical deadlines for non-resident taxable persons operating in India.
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Created: 11th July, 2025 1:45 AM, last update:11th July, 2025 1:45 AM
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Introduction to GSTR-5
Non-Resident Taxable Persons (NRTPs) must comply with specific tax regulations while conducting business in India. A critical requirement for these taxpayers is the submission of the GSTR-5 return. This article aims to provide a comprehensive overview of GSTR-5, including its significance, filing deadlines, and necessary format.
What is GSTR-5?
GSTR-5 is a return that every registered non-resident taxable person must file through the GST Portal. It includes all taxable supplies made by NRTPs within India and is essential for ensuring compliance with the Goods and Services Tax (GST) framework.
Who qualifies as a Non-Resident Taxable Person?
A non-resident taxable person is defined as an individual or entity without a permanent establishment in India, temporarily engaged in making taxable supplies. Such individuals must provide a detailed account of all taxable transactions in their GSTR-5 submissions.
Importance of GSTR-5
The GSTR-5 return is crucial as it outlines the business transactions of non-residents, including their sales and purchases. Furthermore, the data captured in GSTR-5 is transferred to the GSTR-2A/2B of the buyers, ensuring a transparent tax system.
GSTR-5 Filing Deadlines
According to the GST Act, the GSTR-5 return is due on the 13th of the following month. For instance, if the GSTR-5 for March 2025 must be filed, the due date is April 13, 2025. Below are the specific due dates for FY 2025-26:
- March 2025: April 13, 2025
- April 2025: May 13, 2025
- May 2025: June 13, 2025
- June 2025: July 13, 2025
- July 2025: August 13, 2025
- August 2025: September 13, 2025
- September 2025: October 13, 2025
- October 2025: November 13, 2025
- November 2025: December 13, 2025
- December 2025: January 13, 2026
- January 2026: February 13, 2026
- February 2026: March 13, 2026
- March 2026: April 13, 2026
Special Registration Under Section 27
Non-resident taxable persons may obtain a temporary special certificate of registration valid for 90 days from the registration date. This allows them to conduct taxable supplies in India. They must file GSTR-5 within seven days after their registration period’s expiration.
Example Scenario
- Registration Date: January 27, 2024
- Expiry Date: March 23, 2024
- Tax Periods for Filing:
- January 27, 2024, to January 31, 2024 - Due: February 13, 2024
- February 1, 2024, to February 29, 2024 - Due: March 13, 2024
- March 1, 2024, to March 23, 2024 - Due: March 30, 2024
Consequences of Not Filing GSTR-5
Neglecting to file the GSTR-5 return may hinder the filing of subsequent returns, resulting in penalties and compliance complications. Late filings can lead to significant fines and additional interest charges.
Late Filing Penalties
If a GSTR-5 return is submitted after the due date, penalties apply. The interest rate is set at 18% per annum for the delayed period, beginning the day after the due date. Additionally, a late fee of ₹50 per day (or ₹20 for nil returns) may be incurred, capped at ₹5,000.
Required Details for GSTR-5
The GSTR-5 form consists of 14 specific headings mandated by the government, requiring detailed reporting. The following key details must be included:
- GSTIN: The GST Identification Number, or provisional ID if applicable.
- Taxpayer Name: The legal and trade name of the taxpayer, which is auto-populated in the system.
- Validity Period: The effective validity period of registration, also auto-populated.
- Imported Goods Information: Details of inputs and capital goods imported into India, including Bill of Entry specifics, tax rates, and available Input Tax Credit (ITC).
- Amendments: Any modifications to previously submitted data can be updated in the GSTR-5.
- Taxable Supplies: Report invoice-wise details for taxable outward supplies made to registered persons.
By adhering to these guidelines, non-resident taxable persons can ensure compliance with GST regulations, avoiding potential penalties and complications. Additionally, understanding the registration process can further streamline their operations in India.
Frequently Asked Questions
What is GSTR-5 and why is it important for non-resident taxable persons?
GSTR-5 is a return that non-resident taxable persons (NRTPs) must file through the GST Portal in India. It captures all taxable supplies made by NRTPs within the country, ensuring compliance with the Goods and Services Tax (GST) framework. This return is crucial as it outlines the business transactions of non-residents, including their sales and purchases. The data submitted in GSTR-5 is also transferred to the GSTR-2A/2B of the buyers, promoting transparency in the tax system. By filing GSTR-5, NRTPs can maintain compliance and avoid penalties related to GST regulations.
Who qualifies as a non-resident taxable person (NRTP) in India?
A non-resident taxable person (NRTP) is defined as an individual or entity that does not have a permanent establishment in India but is temporarily engaged in making taxable supplies within the country. This classification allows NRTPs to participate in Indian business activities without needing to establish a permanent presence. It’s essential for NRTPs to accurately report their taxable transactions in GSTR-5 to ensure compliance with GST laws, as failure to do so can lead to significant penalties and complications in future filings.
What are the filing deadlines for GSTR-5?
The GSTR-5 return must be filed by the 13th of the following month after the tax period. For example, if you have supplies for March 2025, the due date for filing GSTR-5 would be April 13, 2025. The deadlines for FY 2025-26 are as follows: for April, it’s May 13, for May, it’s June 13, and so on. It's crucial to adhere to these deadlines to avoid late filing penalties, which can add up quickly. Setting reminders a few days before the due date can help ensure timely compliance.
What are the consequences of not filing GSTR-5 on time?
Failing to file GSTR-5 on time can lead to several negative consequences for non-resident taxable persons. Not only does it hinder the ability to file subsequent returns, but it also incurs penalties and compliance complications. Late submissions attract an interest rate of 18% per annum on the delayed period, starting the day after the due date. Additionally, a late fee of ₹50 per day (or ₹20 for nil returns) is applied, capped at ₹5,000. To avoid these issues, NRTPs should prioritize timely filing and consider obtaining professional assistance if needed.
What information is required to complete GSTR-5?
To successfully complete GSTR-5, non-resident taxable persons must provide specific information under 14 mandated headings. This includes details such as the GST Identification Number (GSTIN), taxpayer's legal and trade name, and the validity period of registration. Furthermore, NRTPs need to report information about imported goods, including Bill of Entry details and tax rates. They should also include invoice-wise details for taxable outward supplies made to registered persons and any amendments to previously submitted data. Proper documentation and accuracy in these details are vital to ensure compliance.
How can non-resident taxable persons obtain special registration under Section 27?
Non-resident taxable persons can obtain a temporary special certificate of registration under Section 27, which is valid for 90 days from the registration date. This registration allows them to conduct taxable supplies in India. To initiate this process, NRTPs need to apply through the GST Portal and provide necessary documentation regarding their business activities. It's essential to file GSTR-5 within seven days after the expiration of this registration, covering all relevant tax periods during the registration's validity. Being proactive in managing this registration can help streamline operations in India.
What are the penalties for late filing of GSTR-5?
If a GSTR-5 return is filed after the due date, non-resident taxable persons face specific penalties. The interest for late filing is set at 18% per annum, accruing from the day after the due date until the return is filed. In addition, a late fee of ₹50 per day is imposed for delays in filing, while nil returns incur a fee of ₹20 per day. However, the total late fee is capped at ₹5,000. To minimize these penalties, it’s advisable for NRTPs to adhere strictly to filing deadlines and consider using reminders or professional services for assistance.
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