What is GSTR-5?
GSTR-5 is a monthly GST return that Non-Resident
Taxable Persons (NRTPs) must file in India. It contains details of:
- Taxable
outward supplies (sales) made in India
- Tax
paid on outward supplies
- Import
of goods and services
- Tax
paid, input tax credit (ITC) availed, and closing balance
A Non-Resident Taxable Person (NRTP) is a foreign
business or individual who supplies goods or services in India but does not
have a permanent place of business in the country.
Who Needs to File GSTR-5?
Any Non-Resident Taxable Person (NRTP) who is
registered under GST and conducting business in India must file GSTR-5.
Who is Considered a Non-Resident Taxable Person?
A Non-Resident Taxable Person (NRTP) is someone who:
- Does
not have a permanent business establishment in India.
- Supplies
goods or services temporarily in India.
- Is
registered under GST on a temporary basis.
Example: A foreign company participating in an
exhibition in India and selling its products must register as an NRTP and file
GSTR-5.
Who is NOT Required to File GSTR-5?
- Indian
businesses and regular taxpayers.
- Foreign
companies that do not sell goods or services in India.
- Non-resident
businesses with a fixed place of business in India (they file regular
GST returns).
Due Date for Filing GSTR-5 (2025 Updated)
- GSTR-5
must be filed by the 20th of the following month.
Example:
- GSTR-5
for January 2025 must be filed by 20th February 2025.
Late Fee: ₹50 per day (₹25 CGST + ₹25 SGST) for
delays, with a maximum of ₹10,000.
Details to be Reported in GSTR-5
GSTR-5 requires businesses to report the following:
1. Taxpayer Information
- GSTIN
(GST Identification Number)
- Business
Name
- Validity
Period of Registration (Temporary GST registration period)
2. Details of Outward Supplies (Sales) in India
- Invoice-wise
sales made in India
- Taxable
value and GST charged
- Place
of supply (State-wise details)
- Tax
rate applicable (5%, 12%, 18%, 28%)
3. Imports of Goods & Services
- Details
of goods imported into India
- IGST
paid on imports
4. Credit/Debit Notes Issued (if any)
- Adjustments
for any sales returns or price corrections
5. Input Tax Credit (ITC) Availed (if any)
- ITC
claimed on imported goods and services
6. Tax Payment Details
- Total
tax payable (CGST, SGST, IGST)
- Tax
already paid
- Remaining
tax liability
How to File GSTR-5? (Step-by-Step Guide)
Step 1: Login to GST Portal
- Visit
www.gst.gov.in
and log in with your GSTIN and password.
Step 2: Select GSTR-5
- Go
to the Returns Dashboard and select GSTR-5 for the
applicable month.
Step 3: Enter Business Details
- Fill
in Non-Resident Taxpayer Information and validity period.
Step 4: Report Outward Supplies (Sales) & Imports
- Add
sales invoices with GST details.
- Report
imports and taxes paid on imports.
Step 5: Declare ITC (if applicable)
- If
any Input Tax Credit (ITC) is available, enter details.
Step 6: Make GST Payment
- Pay
any outstanding GST using electronic cash ledger.
Step 7: Verify and Submit
- Click
“Submit”, verify details, and file using Digital Signature (DSC)
or OTP (EVC).
GSTR-5 is now successfully filed!
Example of GSTR-5 Filing
Example Business Details
- Business
Name: ABC Inc. (Foreign company)
- Country
of Origin: USA
- Business
Activity: Participated in an expo in Mumbai, sold goods.
- Sales
in India: ₹5,00,000
- Imports:
₹2,00,000
- Filing
Month: January 2025
Step-by-Step Tax Calculation
GST on Sales (Outward Supplies in India)
- Sales:
₹5,00,000
- GST
Rate: 18% (9% CGST + 9% SGST)
- GST
Collected: ₹90,000
- CGST
= ₹45,000
- SGST
= ₹45,000
GST on Imports
- Imports:
₹2,00,000
- IGST
on imports: 18% of ₹2,00,000 = ₹36,000
Total GST Payable
|
GST Component |
GST Collected |
ITC Available |
Net GST Payable |
|
CGST |
₹45,000 |
₹0 |
₹45,000 |
|
SGST |
₹45,000 |
₹0 |
₹45,000 |
|
IGST (Imports) |
₹36,000 |
₹36,000 |
₹0 |
|
Total |
₹1,26,000 |
₹36,000 |
₹90,000 |
ABC Inc. needs to pay ₹90,000 GST after ITC adjustment.
File GSTR-5, pay tax, and stay compliant!
Key Takeaways from GSTR-5
- Mandatory
for foreign businesses operating in India.
- Monthly
filing by the 20th of the following month.
- Includes
outward supplies and imports.
- No
Input Tax Credit (ITC) on purchases from Indian suppliers.
- Late
filing leads to penalties and tax liabilities.
Penalties for Late Filing of GSTR-5
Late Fee:
- ₹50
per day (₹25 CGST + ₹25 SGST).
- Maximum
penalty: ₹10,000 per return.
Additional Interest:
- 18%
per annum on the outstanding tax amount.
Consequences of Non-Filing:
- Tax
liability remains unpaid.
- Future
business transactions in India may be blocked.
- Legal
action by tax authorities.
Difference Between GSTR-5 and Other GST Returns
|
Feature |
GSTR-5 |
GSTR-3B |
GSTR-1 |
|
Who Files? |
Non-Resident Taxpayers |
Regular taxpayers |
Regular taxpayers |
|
Filing Frequency |
Monthly |
Monthly |
Monthly/Quarterly |
|
Includes Imports? |
Yes |
No |
No |
|
ITC Available? |
Yes (only on
imports) |
Yes |
Yes |
|
Late Fee |
₹50/day |
₹50/day |
₹50/day |
GSTR-5 is mandatory for all foreign businesses supplying
goods/services in India!
Conclusion
GSTR-5 ensures that foreign businesses operating
temporarily in India comply with GST laws.
- Filed
every month by the 20th.
- Covers
sales, imports, and tax payment.
- Late
filing attracts penalties and interest.
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