With businesses expanding across borders, several foreign companies and individuals temporarily supply goods or digital services in India. To ensure GST compliance, the GST law prescribes two special returns including GSTR-5 and GSTR-5A. Although both apply to non-resident taxpayers, they serve different categories of businesses.
If you are a foreign business operating in India or providing digital services to Indian customers, understanding GSTR-5/5A is essential to avoid penalties and ensure timely compliance. Using a reliable GST billing software can further simplify return preparation, tax calculation, and record management.
In the article today, we explain the meaning, applicability, due dates, filing process, and key differences between GSTR-5 and GSTR-5A.
What is GSTR-5?
GSTR-5 is a monthly GST return filed by Non-Resident Taxable Persons (NRTPs) who temporarily carry out business or supply goods and services in India without having a fixed place of business.
The GST return captures details including;
- Outward supplies (sales)
- Inward supplies (purchases)
- Tax liability
- Taxes paid
- Closing balance of advance tax
The purpose of GSTR-5 is to ensure that temporary foreign businesses remain compliant with Indian GST regulations during the validity of their GST registration.
Who should file GSTR-5?
GSTR-5 must be filed by;
- Foreign companies temporarily undertaking business in India.
- Foreign individuals registered as Non-Resident Taxable Persons.
- Businesses participating in exhibitions, trade fairs, or short-term commercial activities in India.
- Overseas suppliers making taxable supplies within India under temporary GST registration.
A valid temporary GST registration is mandatory before conducting taxable business activities in India.
What is GSTR-5A?
While GSTR-5 applies to non-resident suppliers of goods and services in India, GSTR-5A is specifically designed for foreign Online Information and Database Access or Retrieval (OIDAR) service providers.
These include businesses providing digital services such as;
- Online software subscriptions
- Cloud computing services
- Digital advertising
- Streaming platforms
- E-books & Online databases
- SaaS platforms
Foreign OIDAR providers supplying services to Indian consumers are required to file GSTR-5A every month. The return primarily reports taxable outward supplies and GST payable. Unlike GSTR-5, Input Tax Credit (ITC) cannot be claimed through GSTR-5A.
GSTR-5 vs. GSTR-5A
| Particular | GSTR-5 | GSTR-5A |
| Applicable To | Non-Resident Taxable Persons (NRTPs) | Foreign OIDAR Service Providers |
| Nature of Business | Temporary Supply of Goods and Services in India | Digital Services Supplied from Other Countries |
| Filing Frequency | Monthly | Monthly |
| Due Date | 13th of the Consecutive Month or 7 Days Within Registration Expiry, Whichever is Earlier | 20th of the Following Month |
| ITC Availability | Limited as per GST Provisions | No ITC Available |
| Return Contents | Purchase, Sales, Tax Liability, and Advance Tax | Outward Digital Services & GST Liability |
Due Date for Filing GSTR-5/5A
GSTR-5
The return must be filed:
By the 13th day of the month following the relevant tax period
or
Within 7 days after the expiry of GST registration, whichever is earlier.
GSTR-5A
The due date is the 20th of the month following the tax period.
Even if no business transactions occur during the month, GSTR-5A must generally be filed as a Nil Return wherever applicable.
Information Required While Filing
GSTR-5
The return generally includes:
- GSTIN
- Business details
- Outward taxable supplies
- Inward supplies
- Debit and Credit Notes
- Tax liability
- Tax payment details
- Closing balance of advance tax
GSTR-5A
The return mainly captures;
- GSTIN
- Details of OIDAR services supplied
- Taxable value
- GST payable
- Tax payment details
Maintaining proper digital records throughout the month makes return filing significantly easier.
How to File GSTR-5/5A?
The filing process is completely online.
Step 1: Log in to the GST Portal.
Step 2: Navigation: Services- Returns- Returns Dashboard
Step 3: Select the relevant financial year and return period.
Step 4: Choose either GSTR-5 or GSTR-5A.
Step 5: Enter the required transaction details.
Step 6: Verify tax liability.
Step 7: Offset liability using the Electronic Cash Ledger.
Step 8: Submit and file using:
- Digital Signature Certificate (DSC), or
- Electronic Verification Code (EVC).
An ARN is generated after successful filing for future reference.
What happens if you miss the due date?
Delayed filing may result in:
- Late fees
- Interest on unpaid tax
- Compliance notices
- Difficulty in maintaining GST registration status
For GSTR-5A, the return must also be filed sequentially, meaning pending returns from previous periods generally need to be cleared before filing subsequent returns. Additionally, GSTN has introduced restrictions on filing returns beyond specified time limits for older periods, making timely compliance even more important.
Why GST Billing Software is Important.
Preparing GST returns manually becomes increasingly difficult as transaction volumes grow. A modern GST billing software helps businesses automate billing, maintain tax records, and reduce filing errors.
Key advantages include;
- Automated GST calculations
- Invoice generation
- Purchase and sales management
- Accurate tax reports
- Faster reconciliation
- Reduced manual data entry
- Better compliance with GST regulations
- Easy report generation for return filing
For businesses operating in multiple jurisdictions or handling large transaction volumes, automation significantly reduces compliance risks.
Choosing the Best Billing Software in India
When evaluating the best billing software in India, browse online for features including;
- GST-compliant invoicing
- Inventory management
- Multi-user access
- Automated tax reports
- E-invoicing support
- E-Way Bill integration
- Secure cloud backup
- Comprehensive MIS reports
- Accounting integration
- Regular GST updates
Selecting the Best GST billing software of India helps businesses remain compliant with changing tax regulations while improving operational efficiency.
Conclusion
Understanding GSTR-5/5A is crucial for foreign businesses operating in India to ensure timely GST compliance and avoid penalties. Filing accurate returns becomes easier with a reliable GST billing software, which automates invoicing, tax calculations, and reporting. Choosing the best billing software in India helps businesses simplify GST filing, improve accuracy, and stay compliant with evolving tax regulations.
FAQs on GSTR-5/5A
Who is required to file GSTR-5?
GSTR-5 must be filed by Non-Resident Taxable Persons (NRTPs) who temporarily undertake business activities or supply taxable goods and services in India without having a fixed place of business. It is applicable to foreign individuals and companies registered under GST as NRTPs.
What is the difference between GSTR-5 and GSTR-5A?
GSTR-5 is filed by Non-Resident Taxable Persons (NRTPs) carrying out temporary business activities in India, whereas GSTR-5A is filed by foreign providers of Online Information and Database Access or Retrieval (OIDAR) services supplying digital services to customers in India.
What is the due date for filing GSTR-5 and GSTR-5A?
The due date for GSTR-5 is the 13th day of the month following the relevant tax period or within 7 days after the expiry of the GST registration, whichever is earlier. GSTR-5A must generally be filed by the 20th day of the following month.
Can GST billing software help in filing GSTR-5/5A?
A reliable GST billing software helps businesses maintain accurate invoices, calculate GST automatically, generate tax reports, and organize transaction data required for return filing. This reduces manual errors and makes GST compliance faster and more efficient.
What features should you look for in the best GST billing software in India?
When selecting the best billing software in India, look for features such as GST-compliant invoicing, inventory management, e-invoicing, E-Way Bill support, automated GST reports, accounting integration, cloud backup, and regular GST updates. Choosing the Best GST billing software of India can simplify compliance and improve overall business efficiency.
