SUB GST p6.4

What is GSTR 5 & how to file GSTR 5?

5 May 2020

About:

In GSTR-5 it contains all the business details including the details of outward supplies (sales) and inward supplies(purchases) made by the registered non-resident. It is a document that has to be filed by every person who is registered non-resident for the period in which he is carrying the business transactions in India. The person who needs to file this return can do it online through the GST portal or he can also do it by tax facilitation center.

To file this return first you have to be a non-resident foreign taxpayer who does not have its business registered in India and you need a temporary GST number by taking registration under it for the period you are carrying the business in India.

When do you need to file GSTR-5?

When a non-resident registered taxpayer is carrying business for more than months then they have to file GSTR-5 every 20th of next month in which the transaction is done. And if the non-resident is canceled its registration he has to file GSTR-5 within one week from the date of cancellation.

And when you do not file GSTR-5 within the prescribed period. Then late filing of GST will lead to penalties and fines. Interest is 18% per annum on the amount of tax to be paid on that due date to the date it will be paid. A late fee is applicable at Rs.50 per day and it is Rs.20 per day when it is a nil return. The maximum amount of late fees is Rs.5000.

How to file GSTR-5?

To file GSTR-5 you have to fill the given sections in the form which consist of a wide range of details about non-resident taxpayer’s sales and purchase transactions the details are as follows:

• Section 1: In this section, you have to mention your GSTIN(Goods and Services Taxpayer Identification Number).

• Section 2: Now enter the name of the taxpayer whose name is registered as a taxpayer the person who is authorized signatory for your business.

• Section 3: Enter the address which is given by the non-resident at the time of taking registration under GST.

• Section 4: Now you have to specify the period for which you are filing the return(GSTR-5).

• Section 5: This section is of Goods Imported. In this, you are required to enter the details of all goods that you have imported into India with all their supporting documents like bill of entry and mention their 8 digit HSN (Harmonized System of Nomenclature) codes.

Under the next section which is sub-part of this section, you can amend or update any changes made to the documents that you have filed earlier like previous bills of entries you have filed. Now you are also required to furnish details of the original bill of entry that have now been amended or updated.

• Section 6: This section is the Import of Service. In this section, you are required to record the details of all services that were imported from other foreign suppliers who are also taxable under GST. And under its sub-section, you can amend or modify the details of services that have been imported by you during previous tax periods.

• Section  7: Now in this section of GSTR-5 is Outward Supplies made. In his section, you are required to provide the details of all outward supplies that you have made in India for the period you are filing this tax return. You have to specify the details of all registered buyers with their GST numbers. Also, you have to segregate different components of GST (CGST, SGST, and IGST). You can modify the details of outward supplies that have been previously filed by you that can be made under the sub-section of this section.

• Section 8: This section is named as Details of Credit/Debit Notes. Here you have to provide the details of all credit notes and debit notes that you have raised for business transactions that you have done in India. In the sub-section of this section, you can also modify or amend the details of credit/debit notes that you have filed earlier.

• Section 9: Tax Paid, you have to record the details of the tax paid for this tax period by mentioning different GST components (CGST, SGST, and IGST).

• Section 10: Closing Stock of Goods, in this you have to specify the details of your closing stock for this tax period.

• Section 11: Refund Claimed from Cash Ledger, this section will contain the details of all refunds that you have received into the bank account from the electronic cash ledger.