What Is GSTR-5?

Understanding GSTR-5 for GST Filing

GSTR-5 is a monthly return that non-resident taxpayers registered under the Goods and Services Tax (GST) regime must file. 

Key Features of GSTR-5:

1. For Non-Resident Taxpayers:

GSTR-5 is specifically for non-resident taxpayers who are registered under GST in India but do not have a fixed place of business in the country.

2. Monthly Filing:

Non-resident taxpayers are required to file GSTR-5 every month.

The due date for filing GSTR-5 is typically the 20th of the following month.

3. Summary Return:

GSTR-5 is a summary return where non-resident taxpayers report their summarized details of inward supplies, tax payable, and tax paid during the month.

4. Details of Inward Supplies:

Non-resident taxpayers declare details of their inward supplies (purchases) in GSTR-5, including supplies subject to reverse charge mechanism.

5. Tax Liability Calculation:

Taxpayers calculate their tax liability based on the total value of inward supplies and the applicable GST rates.

6. No Provision for Outward Supplies:

Since non-resident taxpayers do not make outward supplies in India, GSTR-5 does not include any provisions for reporting outward supplies.

7. Declaration of Tax Liability:

Taxpayers declare their tax liability for the month in GSTR-5 and make the necessary payment of taxes due.

8. Details of Tax Paid:

GSTR-5 also requires taxpayers to provide details of tax paid during the month, including any adjustments or refunds.

 Key Sections in GSTR-5:

Part A: Basic details such as GSTIN, legal name, and trade name (if any) of the non-resident taxpayer.

Part B: Details of inward supplies, including supplies subject to reverse charge mechanism.

Part C: Tax payable and paid, including details of tax liabilities for the month.

 Benefits of Filing GSTR-5:

Compliance Requirement: Helps non-resident taxpayers fulfill their GST compliance obligations in India.

Tax Liability Calculation: Facilitates the calculation and payment of tax liabilities based on inward supplies.

Transparency: Provides transparency in tax reporting for non-resident taxpayers registered under GST.