GSTR-5 – A Practical Guide for Non-Resident Taxable Persons

GSTR-5 is a monthly GST return that has to be filed by Non-Resident Taxable Persons (NRTPs) who are registered under GST in India. This return captures all outward supplies, inward supplies, tax liability, and tax paid during the period the non-resident operates in India.

Unlike regular GST returns, GSTR-5 is applicable only to a specific category of taxpayers and usually for a short duration.

Who is Required to File GSTR-5?

GSTR-5 must be filed by a Non-Resident Taxable Person, meaning:

• A person or business located outside India
• Who occasionally supplies goods or services in India
• And has taken temporary GST registration in India

Examples include:

• Foreign exhibitors participating in trade fairs in India
• Overseas companies providing short-term services in India
• Foreign sellers supplying goods in India without a fixed place of business

Regular taxpayers, composition dealers, ISD, and TDS/TCS deductors do not file GSTR-5.

Due Date for Filing GSTR-5

GSTR-5 is required to be filed:

• By the 13th of the following month, or
• Within 7 days from the expiry of GST registration, whichever is earlier

Since non-resident registrations are time-bound, missing this return can delay closure of registration and refund of balance cash.

What Information is Reported in GSTR-5?

GSTR-5 covers both sales and purchases made during the period. Key details include:

• Outward taxable supplies made in India
• Inward supplies (purchases) received from Indian suppliers
• Import of goods or services
• Debit and credit notes issued or received
• Tax payable and tax paid
• Interest, late fees, if any

Input Tax Credit (ITC) can be claimed only on eligible inward supplies, subject to GST law.

Payment of Tax under GSTR-5

Non-Resident Taxable Persons are required to:

• Pay advance GST at the time of registration
• Use this balance to discharge monthly tax liability

Any excess balance remaining after filing the last GSTR-5 can be claimed as a refund.

Late Fee and Penalty

If GSTR-5 is filed late, the following late fees apply:

• ₹50 per day (₹25 CGST + ₹25 SGST)
• ₹20 per day for NIL return
• Maximum late fee capped as per GST rules

Interest at 18% per annum may also apply on delayed tax payment.

Important Practical Point

Once you file your GSTR-5, there are no possibilities of submitting a revised version of your return. You must file your GSTR-5, even if your business was inactive for that particular period (which would result in a NIL GSTR-5). To receive a Refund for any excess GST to be paid, all GSTR returns must first be filed. You cannot de-register your business until you have filed your final GSTR-5.  

Conclusion

 GSTR-5 is a report for temporary registrations with respect to compliance under Goods and Services Tax (GST) by non-residents doing business in India on a short term basis. GSTR-5 has very strict timelines for submission and if required to submit GSTR-5 you may incur penalties for late submission or not paying the total GST due, therefore having the potential for late fees, non-recoverable refund blocks, and cancellation of GST registration due to non-compliance with GSTR-5 filing requirements. To avoid penalties and issues with compliance and refunds, the non-residents should plan ahead by taking the following steps: obtain GST registration before arriving in India; estimate advance tax obligations correctly; File GSTR-5 on time. These steps will allow the non-residents to maximize their compliance with GST, receive timely refunds, and exit the Indian GST system without any issues.