A Comprehensive Guide for Non-Resident Taxpayers

• GSTR-5 is a monthly return for non-resident taxpayers, covering sales, purchases, and tax liabilities.
• It’s due by the 13th of the following month, with penalties for late filing.
• Includes imports, outward supplies, tax payments, and amendments to past returns.
• Timely filing ensures compliance, avoids penalties, and maintains smooth business operations.

If you’re a foreign business selling goods or services in India, GSTR-5 is something you can’t ignore. It’s a monthly GST return that non-resident taxable persons (NRTPs) must file. This return reports your sales, purchases, and tax payments. The deadline is within 13 days after the end of the month.Staying compliant isn’t just about avoiding penalties—it ensures smooth operations. If you’re dealing with GST in India, understanding GSTR-5 is key to keeping things hassle-free. This article will give you complete details about GSTR-5.

If you're a non-resident business supplying goods or services in India, GSTR-5 is the GST return you need to file. It’s a mandatory monthly return that includes details of your sales, purchases, and tax payments.Earlier, this had to be submitted on the GST portal within 20 days after the month ended. After Budget 2022, the timeline has been revised to the 13thof next month. Also Read - Find out the overall impact of GST on the Indian economy

A non-resident foreign taxpayer is someone who doesn’t have a business setup in India but comes for a short time to sell goods or services.Since they’re not permanently based in India, they must register under GST for a temporary period of 90 days or less and report all taxable supplies through GSTR-5. This helps the government track transactions and ensures tax compliance for short-term foreign businesses.

If you’re a non-resident business making sales in India, GSTR-5 is something you can’t ignore. This return isn’t just a formality—it’s what keeps your business GST-compliant and ensures you avoid penalties.Here’s why it matters:

• Covers All Business Transactions : GSTR-5 records everything: your sales, purchases, and taxes paid while operating in India.
• Helps Your Buyers Claim ITC : The details you submit flow into your buyers' GSTR-2A and GSTR-2B, helping them claim input tax credit (ITC) .
• Prevents Legal Hassles : Missing deadlines or incorrect filings can lead to penalties and complications. Filing on time keeps things smooth.
• Ensures Transparency : It keeps tax authorities informed about foreign businesses operating in India, making transactions clear and accountable.

At the end of the day, GSTR-5 isn’t just a rule—it’s a necessity to run your business legally in India.

As discussed before, if you’re a non-resident taxpayer operating in India, you need to file a GSTR-5 every month. The deadline is the 13th of the following month. For example, the return for March 2024 must be submitted by April 13, 2024.Here’s a quick look at the due date month-wise for FY 2024-25:

• April 2024 → May 13, 2024
• May 2024 → June 13, 2024
• June 2024 → July 13, 2024
• July 2024 → August 13, 2024
• August 2024 → September 13, 2024
• September 2024 → October 13, 2024
• October 2024 → November 13, 2024
• November 2024 → December 13, 2024
• December 2024 → January 13, 2025
• January 2025 → February 13, 2025
• February 2025 → March 13, 2025
• March 2025 → April 13, 2025

Also Read - Here's a GST due date calendar for the financial year 2024-25

If a non-resident or casual taxpayer registers under Section 27 of the GST Act, their registration is temporary. It is valid for either the period they mention in their application or 90 days from the registration date, whichever is earlier. They can only start making taxable sales once they receive their registration certificate.Now, here’s the important part: GSTR-5 must be filed within 7 days after their registration period ends. Example: Let’s say a foreign business registers in India on March 5, 2024, and its registration is valid until April 30, 2024.

• For March 5–March 31, 2024, they need to file a GSTR-5 by April 13, 2024.
• For April 1–April 30, 2024, the return is due by May 7, 2024 (7 days after registration ends).

Filing a GSTR-5 on time is crucial for non-resident taxpayers. If you fail to file, you won’t be able to submit the next month’s return, creating a domino effect that can lead to compliance issues and penalties.If you file late, you’ll face:

• Interest Charges : It is 18% per year on the unpaid tax amount, calculated from the due date until payment.
• Late Fees : It is ₹50 per day (₹20 per day for nil returns), capped at ₹5,000.

Delays can quickly add up, so it’s best to file on time and avoid unnecessary costs.

Filing a GSTR-5 is essential for non-resident taxpayers conducting business in India. This return comprises 14 sections, each capturing specific details about your transactions.
Here's a breakdown to guide you: Goods and Services Tax Identification Number (GSTIN) Your unique GSTIN is assigned upon registration. You can put a provisional ID here if GSTIN is not available. Name of the Taxable Person Your business's registered name. This will be auto-populated after you enter GSTIN. Period of Return The month and year for which you're filing the return (will be auto-populated). Inputs/Capital Goods Received from Overseas (Import of Goods) Details of goods imported, including description, quantity, and value. This includes bill of entry details, tax rate, IGST (Integrated Goods and Services Tax), cess paid, and the eligible input tax credit (ITC). Note: A non-resident (NR) taxpayer can only import goods as inward supplies (purchases). Amendments to Details of Import of Goods Furnished in Earlier Returns Corrections or updates to previously reported import details. Modifications allowed in the bill of entry, IGST rate, taxable value, IGST & cess amount, and ITC availability. Any ITC difference will be adjusted. Both the original and revised bill of entry details are required. Taxable Outward Supplies Made to Registered Persons (including UIN holders) Details of B2B sales made, including invoice numbers, dates, customer GSTINs, and taxable value. Taxable Outward Inter-state Supplies to Un-registered Persons Where Invoice Value Is More than ₹2.5 Lakh Includes inter-state B2C large sales (invoice value over ₹2.5 lakh) to unregistered buyers. Taxable Supplies (Net of Debit Notes and Credit Notes) to Unregistered Persons Other Than the Supplies Mentioned in Table 6: Includes B2C sales under ₹2.5 lakh to unregistered buyers. Intra-state sales are reported as a summary, while inter-state sales are listed state-wise. Amendments To Taxable Outward Supply Details Furnished in Returns for Earlier Tax Periods in Tables 5 And 6 (Including Debit Note/Credit Notes and Amendments Thereof) Modifications to sales data were reported in prior returns. This includes new debit/credit notes and invoice revisions. Original details must be provided for any changes. Amendments To Taxable Outward Supplies to Unregistered Persons Furnished in Returns for Earlier Tax Periods in Table 7 Captures B2C sales amendments from previous months (Table 7). Intra-state sales are summarised, while inter-state sales are reported state-wise. Total Tax Liability Contains 2 subsections: Outward supply – tax due on current month’s sales.Differential ITC (Negative in Table 4) – extra tax payable due to ITC reversal from past import adjustments. Tax Payable and Paid Summary of taxes paid under various heads like IGST, CGST (Central Goods and Services Tax) , SGST (State Goods and Services Tax), and cess. You can make payment via ITC or cash. Interest, Late Fee, and Any Other Amount Payable and Paid Details of any interest or late fees applicable due to delayed payments or filings. Refund Claimed from Electronic Cash Ledger If you've an excess balance in your cash ledger, specify the refund amount claimed. A dropdown allows the NR to select the bank account for receiving the refund. Debit Entries in Electronic Cash/Credit Ledger for Tax/Interest Payment (To Be Populated After Payment of Tax and Submissions of Return) Record of payments made from your electronic cash or credit ledger towards tax and interest liabilities. It gets updated after the payment of tax and return submission.Lastly, the return is verified by an authorised representative, who must be an Indian resident with a valid PAN card acting on behalf of the non-resident taxpayer.

Filing a GSTR-5 is a crucial step for non-resident taxpayers doing business in India. It ensures compliance, smooth transactions, and proper tax credit flow for buyers. Missing deadlines can lead to penalties and interest, so timely filing is essential.While the process may seem complex, keeping accurate records and following the due dates makes it manageable. Staying compliant not only avoids legal trouble but also helps to maintain seamless business operations in India.To calculate the GST amount due, use the online GST calculator . It is a simple and quick tool that helps you find the GST payable so that you can easily file your returns.