How to File GSTR 5: A Step-by-Step Guide for Non-Resident Taxable Persons

Posted In | Finance | Accounting Software | Gridlex Academy | India Accounting Tax

GSTR 5 is a monthly return form under the Goods and Services Tax (GST) in India that must be filed by non-resident taxable persons. Non-resident taxable persons are individuals or businesses who are not resident in India but are engaged in taxable supplies in the country. In this article, we will provide a step-by-step guide on how to file GSTR 5 for non-resident taxable persons.

 

Step 1: Gather all necessary documents and information 

Before you start the GSTR 5 filing process, it is important to gather all necessary documents and information. This includes details of your outward supplies, GST liability, and input tax credit for the month. You will also need to have your GSTIN (GST identification number) and password ready.

 

Step 2: Log in to the GST portal 

To file GSTR 5, you will need to log in to the GST portal using your GSTIN and password. If you have not yet registered for the GST portal, you will need to do so first.

 

Step 3: Navigate to the GSTR 5 filing page 

Once you are logged in to the GST portal, navigate to the GSTR 5 filing page by clicking on the "File Returns" tab and then selecting "GSTR 5" from the dropdown menu.

 

Step 4: Fill out the GSTR 5 form

On the GSTR 5 filing page, you will see a form with various sections that must be completed. These sections include details of your outward supplies, GST liability, and input tax credit for the month. You will need to enter this information accurately and completely.

 

Step 5: Review and submit the GSTR 5 form 

Once you have completed the GSTR 5 form, it is important to review your entries carefully to ensure that they are accurate and complete. If you need to make any changes, you can do so by clicking on the "Edit" button. Once you are satisfied with your entries, you can submit the GSTR 5 form by clicking on the "Submit" button.

 

Step 6: Make the payment 

If you have any GST liability for the month, you will need to make the payment at this point. You can do so by clicking on the "Pay Now" button on the GSTR 5 filing page. You can make the payment using one of the available payment options, such as net banking or debit/credit card.

 

Step 7: Print or save the acknowledgement 

After you have successfully filed GSTR 5 and made the payment, if applicable, you will receive an acknowledgement receipt. You can print or save this receipt for your records.

 

That's it! You have successfully filed GSTR 5 for the month. It is important to remember that GSTR 5 must be filed by the 20th of the following month. If you fail to file GSTR 5 on time, you may be subject to penalties and other consequences.

 

In conclusion, filing GSTR 5 is a mandatory compliance requirement for non-resident taxable persons in India. By following the steps outlined in this guide, you can easily file GSTR 5 on the GST portal and stay compliant with GST rules and regulations.

 

When to File GSTR-5?

The due date for filing GSTR 5 is the 20th of the following month. For example, if the month ended on March 31, the due date for filing GSTR 5 would be April 20. If the month ended on June 30, the due date for filing GSTR 5 would be July 20, and so on.

 

Frequently Asked Questions: 

1. What happens if GSTR-5 is not filed?

If a non-resident foreign taxpayer fails to file their GSTR-5 return, they may face the following consequences:

• Late fee: If a taxpayer fails to file their GSTR-5 return on time, they may be required to pay a late fee. The late fee is calculated based on the number of days the return is filed after the due date.
• Disallowance of input tax credit: If a taxpayer fails to file their GSTR-5 return, they may not be able to claim input tax credit on the purchases they made during the relevant tax period. This can increase the overall tax liability of the taxpayer.
• Penalty: If a taxpayer consistently fails to file their GSTR-5 returns, the tax authorities may impose a penalty on them. The penalty will be based on the amount of tax liability that is due.

 

2. What happens if GSTR-5 is filed late?

If a non-resident foreign taxpayer files their GSTR-5 return late, they may be required to pay a late fee. The late fee is calculated based on the number of days the return is filed after the due date. The late fee is charged at a rate of 18% per annum, compounded monthly. In addition to the late fee, the taxpayer may also not be able to claim input tax credit on the purchases they made during the relevant tax period. This can increase the overall tax liability of the taxpayer.

 

3. What are the conditions for Filing Form GSTR-5?

The following are the conditions for filing GSTR-5:

• The taxpayer must be registered under GST as a non-resident foreign taxpayer.
• The taxpayer must have a valid GST identification number (GSTIN).
• The taxpayer must have made supplies during the relevant tax period for which they need to file the return.
• The taxpayer must have received a valid tax invoice for the supplies they made.
• The taxpayer must have received a valid tax credit statement (Form GSTR-6) from the recipient of the supplies.
• The taxpayer must have received a valid e-way bill or an e-way bill number for the supplies they made.