Goods and Services Tax (GST) is a comprehensive indirect tax system that was introduced in India on July 1, 2017. It subsumed various indirect taxes such as Service Tax, Central Excise Duty, and VAT. As per the GST law, every registered person is required to file a GST return depending on the type of their business.
In this blog, we will discuss GSTR 5, a return to be filed by Non-Resident Taxable Persons (NRTPs).
What is GSTR 5?
GSTR 5 is a monthly return to be filed by Non-Resident Taxable Persons (NRTPs) who carry out business transactions in India. NRTPs are those who do not have a fixed place of business in India but carry out taxable supplies in the country. They are required to register themselves under GST and file GSTR 5.
When to File GSTR 5?
NRTPs are required to file GSTR 5 on a monthly basis. The due date for filing GSTR 5 is the 20th of the next month. For example, the GSTR 5 for the month of January is to be filed by February 20th.
Information Required to File GSTR 5
NRTPs are required to provide the following details while filing GSTR 5:
GSTIN of the NRTP
Name of the NRTP
Period of the return
Details of all taxable supplies made in India during the period
Details of tax collected and paid during the period
Input tax credit availed and reversed during the period
Amendments to details furnished in earlier returns
Any other details as required
Penalties for Late Filing of GSTR 5
If a taxpayer fails to file GSTR 5 within the due date, a late fee of Rs. 100 per day will be charged. The maximum late fee that can be charged is Rs. 5,000. In addition, interest will be charged at 18% per annum on the tax liability.
Who needs to file GSTR 5?
As mentioned earlier, GSTR 5 is specifically for Non-Resident Taxable Persons (NRTPs) who don’t have a fixed place of business in India but carry out taxable supplies in the country. NRTPs are required to register themselves under GST, obtain a GSTIN, and file GSTR 5 on a monthly basis. Examples of NRTPs include foreign companies, non-resident individuals, and foreign diplomatic missions.
What are taxable supplies?
Taxable supplies are goods or services that are subject to GST. This includes all types of supply made by the NRTP in India, such as sales, rentals, and services rendered. It is important to note that even if the NRTP is not making any taxable supplies in a particular month, they still need to file a nil return for that month.
What is the format of GSTR 5?
GSTR 5 has a similar format to other GST returns and consists of 13 sections. The first section requires the basic details of the NRTP such as their name, GSTIN, and period of the return. The next section requires details of all taxable supplies made in India during the period, including the invoice number, date, and value. The third section requires details of tax collected and paid during the period, including the amount of Integrated Goods and Services Tax (IGST) and tax paid on a reverse charge basis. The fourth section requires details of input tax credit availed and reversed during the period. The last section requires any other details as required.
Other GSTR List You Should Know:
How to file GSTR 5?
NRTPs can file GSTR 5 online on the GST portal. They can either file it themselves or appoint a GST practitioner to file it on their behalf. It is important to ensure that all the details provided in the return are accurate and complete. Once filed, an acknowledgment is generated, and the NRTP can download the same for their records.
Conclusion
GSTR 5 is a monthly return that NRTPs need to file under GST law. It is important for NRTPs to ensure timely and accurate filing of GSTR 5 to avoid penalties and comply with the GST law. With the help of technology and online portals, filing GSTR 5 has become relatively easier, and NRTPs should take advantage of the same.
Frequently Ask Question
Q1. Who needs to file GSTR 5?
GSTR 5 needs to be filed by Non-Resident Taxable Persons (NRTPs) who carry out taxable supplies in India but do not have a fixed place of business in the country.
Q2. What is the due date for filing GSTR 5?
The due date for filing GSTR 5 is the 20th of the next month. For example, GSTR 5 for the month of January is to be filed by February 20th.
Q3. What are taxable supplies?
Taxable supplies are goods or services that are subject to GST. This includes all types of supply made by the NRTP in India, such as sales, rentals, and services rendered.
Q4. What is the penalty for late filing of GSTR 5?
If a taxpayer fails to file GSTR 5 within the due date, a late fee of Rs. 100 per day will be charged. The maximum late fee that can be charged is Rs. 5,000. In addition, interest will be charged at 18% per annum on the tax liability.
Q5. Can a taxpayer revise GSTR 5?
Yes, a taxpayer can revise GSTR 5 for any errors or omissions within a period of one month from the date of filing of the original return.
Q6. Is it mandatory to file GSTR 5 even if there are no taxable supplies made during the month?
Yes, even if there are no taxable supplies made during the month, the NRTP is required to file a nil return for that month.
Q7. What are the consequences of not filing GSTR 5?
Non-filing of GSTR 5 can result in penalties, interest, and legal action. The taxpayer’s GST registration can also be cancelled if they fail to file GSTR 5 for a continuous period of six months.
Q8. Can a GST practitioner file GSTR 5 on behalf of the taxpayer?
Yes, NRTPs can appoint a GST practitioner to file GSTR 5 on their behalf.
