GSTR 5
In this artical, you will know about GST 5, Eligibility, Importance, Late fee and it's Format.
What is GSTR 5?
The GSTR 5 form is a monthly return form that must be submitted by every registered non-resident taxable person on the GST portal. Non-resident taxable persons are suppliers who have no business establishment in India but have come to India for a short period to supply. The taxpayer has to enter information and details of outgoing supplies and inward supplies. The GSTR 5 return form should include details of expenses and income.
GSTR 5 Eligibility – Who Should File for It?
Few terms specify about the people who lie in this category of filing the GSTR 5 form.
The one whose transactions are done occasionally in India.
Registered but non-resident of India.
The taxpayer does not have a specific decided business place.
The one who handles the business from overseas.
Why is GSTR 5 important?
A non-resident foreigner should file the return GSTR 5 as it will include all the details of his/her sale and purchase. All details flow from GSTR 5 of the non-resident supplier to GSTR 2 of the buyer.
GSTR 5 Late fee/Penalty
If there is a delay in filing GSTR 5, the taxpayer has to pay interest and late fees as a penalty. The period will start from the next day of filing i.e. 21st of the month to the date of actual payment.
The interest is 18% per annum and will be calculated on the amount of tax owed by the taxpayer.
The amount of the late fee is Rs. 100 per day for CGST and Rs. 1000 per day for SGST. The maximum late fee charged is Rs. 5,000. There are no late fees however on IGST.
The amount of late fee for zero return is Rs. 50 per day and Rs. 20 per day.
GSTR 5 due date and if not filed
Not Filed - If the taxpayer does not file the GSTR 5 return then the return of next month cannot be filed. Also, late filing of GST returns has a negative effect which will lead to heavy fines and penalties.
Due Date - Every 20th of next month, as per the GST Act. Sometimes the date is changed according to the information given in the new notification by the government.
If the Non-Resident is registered u/s 27
A special certificate of registration is given to non-resident taxable persons and also casual taxpayers. This certificate is of temporary nature which is valid for the days of one registration, whichever is earlier. Only after taking this certificate non-resident can make a taxable supply. With this registration, the non-residents will have to file GSTR 5 within 7 days after the last day of the registration period.
GSTR-5 Format
GSTIN: 15 Digits GSTIN. Taxpayers can also be provided Provisional ID if GSTIN is not available.
Taxpayer Details:
3 fields, namely – the legal name of the taxpayer,
Trade name of the business and
The validity period of registration (will be auto-populated).
Note: A non-resident taxable person should have only import inward supply ie purchase.
Amendment in the details furnished in any earlier return: Non-resident taxable persons may change any of the details in the imports presented in the earlier returns. Changes can be made in:
Bill of Entry (Both original and revised details of bill of entry must be given)
Rate of IGST
Taxable value
Amount of IGST & Cess
Amount of ITC now available
Differential amount of ITC (excess of this will be reversed and vice versa)
Taxable outward supplies made to registered persons (including UIN holders): This section contains invoice-wise details of B2B sales in India, including sales made to UIN holders. Details of IGST or CGST and SGST and cess should be provided with the state.
Taxable outward inter-State supplies to unregistered persons where invoice value is more than INR 2.5 lakh: This will be the details of all major B2C inter-state sales made to the unregistered person, where the invoice value is more than Rs 2.5 lakh.
Taxable supplies (net of debit notes and credit notes) to unregistered persons other than the supplies mentioned in Table 6: It will have details of sales to unregistered dealers (both inter-state and inter-state), where the invoice price will be less than INR 2.5 lakh. Inter-state sales can be mentioned in a consolidated summary, while inter-state sales should be mentioned 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): This must include any changes to the details presented in previous months. Original debit notes and credit notes issued during the month can be presented here. Amendments made to the invoice, debit note, and credit note issued will also appear here. In the case of amendment, original details have to be mentioned.
Amendments to taxable outward supplies to unregistered persons furnished in returns for earlier tax periods in Table 7: This will include changes in sales details for the previous months (originally revealed in Table 7). Inter-state sales can be mentioned in a consolidated summary, while inter-state sales should be mentioned state-wise.
Total Tax Liability:
On account of outward supply: Details of tax liability for outgoing supplies for the current month will be included.
On account of differential ITC being negative in Table 4: As per Table 4, changes in any import of previous months will include details of additional tax to be paid on account of ITC (i.e. difference ITC being negative).
Tax Payable and Paid: This would have to include the details of the tax paid during the month. The breakup of IGST, CGST, SGST, and Cess will be shown. The taxpayer can choose to pay through cash or use ITC.
Interest, late fee, and any other amount payable and paid: It will contain details of interest and late fees payable and will be paid due to late filing of return.
Refund claimed from electronic cash ledger: This will include details of all refunds received in the electronic cash ledger. Here is a dropdown to choose which bank account the non-resident taxable person wants to get the refund for.
Debit entries in electronic cash/credit ledger for tax/interest payment (to be populated after payment of tax and submissions of return): It will show debit entries in the electronic cash ledger, or cash outflow for payment of tax /interest / late fees. It is inhabited after payment of tax and submission of returns.
Disclaimer: This article is intended for general consumption only. The information in the article was accurate at the time of publication, but it is subject to change due to changes in government rules and regulations. The contents of the blog may not be copied unless prior permission is obtained.
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