A Comprehensive Guide to Filing GSTR-5 for Non-Resident Taxpayers on the GST Portal

GSTR-5 is a mandatory Goods and Services Tax (GST) return designed for non-resident foreign taxpayers conducting business transactions within India. This form meticulously records all outward supplies (sales) and inward supplies (purchases) made and received by such taxpayers during their operational period. Filers have the option to submit this return digitally via the official GST portal or through a designated tax facilitation center.

Recent GSTR-5 Updates

• February 1, 2022: The deadline for non-resident taxable persons to file GSTR-5 was adjusted from the 20th to the 13th of the subsequent month.
• May 28, 2021: The filing deadline for GSTR-5 for the months of March, April, and May 2021 was extended until June 30, 2021.
• May 1, 2021: Due dates for furnishing GSTR-5 for March 2021 and April 2021 were extended to May 31, 2021.

GSTR-5, along with any applicable taxes, penalties, or interest, must be filed monthly by the 20th of the following month for the respective tax period. Alternatively, it must be filed within seven days of the registration validity period concluding.

Essential Requirements for Filing GSTR-5

Before initiating the GSTR-5 filing process, taxpayers must meet certain conditions:

1. The taxpayer must be registered as a Non-Resident taxable person and possess a valid GSTIN.
2. A valid User ID and password for the GST portal are required.
3. A valid, non-expired, and non-revoked Digital Signature Certificate (DSC) is mandatory for entities such as Companies and LLP/FLLP. For other taxpayer categories, Electronic Verification Code (EVC) authentication is acceptable.

Step-by-Step Guide to Filing on the GST Portal

Step 1: Access the GST Portal

Begin by logging into the official GST portal using your credentials.

Step 2: Navigate to GSTR-5 and Generate Summary

1. From the services menu, select "Returns" followed by "Returns Dashboard".
2. The "File Returns" page will appear. Choose the relevant Financial Year and Return Filing Period (Month) from the provided dropdown menus.
3. Click the "SEARCH" button.
4. On the GSTR-5 tile, click the "PREPARE ONLINE" button to begin preparing your return.
5. At the bottom of the GSTR-5 page, click the "GENERATE GSTR-5 SUMMARY" button. This action will display the auto-drafted details of supplies.
6. A confirmation message will appear, indicating that the summary generation process has started. You can check the status shortly.

Step 3: Input Details into Various Tiles

The GSTR-5 form is organized into several sections, or "tiles," for data entry:

• Six Main Tiles: These cover imports of goods, outward supplies, B2C (Large) invoices, B2C (Small) invoices, Credit/Debit Notes, and Unregistered Credit/Debit Notes.
• Six Amendment Tiles: Corresponding to each main tile, these allow for corrections.
• Three Tiles: Dedicated to tax payment and return submission.

Entering Data in Main Tiles

The general process for entering details is consistent across most main tiles. For example, to record outward supplies in Tile 5:

1. Click on the specific tile (e.g., Tile 5).
2. A summary page will load. Click the "ADD DETAILS" button.
3. Various input fields will appear. Enter the required information and then click "SAVE". * Invoice numbers must be alphanumeric and unique for the financial year. * Invoice dates cannot be in the future or predate your GST registration. * For intra-state transactions (Tiles 5, 6, 7, & 8), fields for Central Tax and State/UT Tax will be visible. For inter-state transactions, the Integrated Tax field will appear. * CESS amounts must be entered manually. * Provide the Receiver's GSTIN/UIN. The Name, Place of Supply (PoS), and supply type will be auto-populated; adjust PoS if necessary. * Each tax rate is displayed as a line item where the value needs to be entered. * If a concessional tax rate applies (e.g., for a leased car taxed at 65% of the original rate), tick the relevant checkbox and specify the applicable percentage of the total tax rate. This step is optional.
4. Click the "BACK" button to return to the summary page, or "ADD DETAILS" to enter more invoices. The summary page will show either pending or processed invoices.
5. The summary page for processed invoices also provides options to edit or delete existing entries.
6. The tile will then display the number of invoices added, along with the Total Invoice Value, Total Taxable Value, and Total Tax Liability.

These steps are generally applicable to most main tiles. Specific details for each main tile are highlighted below.

Key Aspects of Each Main Tile:

Tile 3: Imports of Goods/Capital Goods from Overseas

All goods brought into Indian territory must be reported in this section. Add all Bill of Entry (BOE) details, including the port code, date, and BOE value, then save. Note that the port code should be 6 alphanumeric characters, and the Bill of Entry Number must be a numeric value between 3 and 15 digits.

Tile 5: Taxable Outward Supplies to Registered Persons (including UIN holders)

This section is for recording details of all outward supplies (B2B supplies) made outside India by foreign taxpayers to registered persons.

Tile 6: B2C (Large) Invoices

Here, details of all inter-state supplies made by a registered person to a consumer, where the invoice value exceeds INR 2.5 lakh, should be entered.

Tile 7A, 7B: B2C (Small)

This section is for entering details of taxable supplies made to other unregistered persons or consumers, excluding those reported in Tile 6.

Tile 8B: Credit/Debit Notes

Enter details of credit notes, debit notes, or refund vouchers issued here. It is also necessary to input the details of the original invoice associated with each note. The summary page will categorize notes by counterparty based on their GSTIN.

Tile 8B: Unregistered Credit/Debit Notes

This tile is specifically for declaring credit or debit notes issued against B2C large supplies.

Entering Details in Amendment Tiles

The process for entering information in amendment tiles mirrors that of the main tiles. For instance, to amend outward supply details in Tile 8A:

Step 1: Select Amendment Tile

Click on the specific amendment tile, such as Tile 8A.

Step 2: Choose Financial Year and Amend Details

1. Select the Financial Year from the dropdown list.
2. Enter the Invoice Number and click the "AMEND INVOICE" button.
3. Make necessary revisions to the details. Enter the updated invoice information and click "SAVE OUTWARD SUPPLIES" to save the changes.

Step 3: Review and Continue

On the summary page, click the "BACK" button to return to the main page, or "AMEND INVOICE" to add further amendments. The summary page will display pending or processed amendments. Amended invoices can also be modified or deleted. The tile will then reflect the number of invoices amended, their total value, total liability, and total taxable value.

These steps are consistent across most amendment tiles. Refer to the highlights below for specific details on each amendment tile.

Key Aspects of Each Amendment Tile:

Tile 4: Amended Import of Goods

This tile allows for any corrections to the import of goods details previously reported in Tile 3. To amend a specific Bill of Entry (BOE), select the financial year, port code, and original BOE number, then revise and save the details.

Tile 8A: Amended Outward Supplies

This tile is used to amend details of outward supplies to registered persons, including UIN holders (B2B supplies). The general amendment steps apply here.

Tile 8A: Amended B2C (Large Invoices)

Details of amendments to outward inter-state supplies made to unregistered persons or consumers, specifically large invoices, are entered here.

Tile 9: Amended B2C (Small)

This tile is used for adding amendments to outward supplies made to unregistered persons or consumers, excluding those mentioned in Tile 8A. To select specific details for amendment, choose the Financial Year and month, specify the Place of Supply, and indicate if a differential percentage of tax applies, then proceed to modify the value and tax fields.

Tile 8C: Amended Credit/Debit Notes (for Registered Persons)

Use this section to amend details of Credit/Debit Notes issued for supplies made to registered persons. Select the financial year and enter the original Credit/Debit Note number and date, then input the revised details and save.

Tile 8C: Amended Credit/Debit Notes (for Unregistered Persons)

This tile is for amending Credit/Debit Notes issued for supplies to unregistered persons or consumers. Enter the Credit/Debit Note number and revise the details.

Step 4: Preview GSTR-5

After all details have been entered, click the "PREVIEW" button. This action will download a draft summary of your GSTR-5 for thorough review.

Reviewing Tax Liability (Tiles 10A, 10B)

Click on the "10A, 10B – Tax Liability" tile to view a breakdown of your tax obligations. The tax liability details will be displayed. Click the "BACK" button to return to the previous page.

Step 5: Acknowledge and Submit GSTR-5 to Freeze Data

1. Check the declaration box, confirming that you have reviewed the preview and that the furnished information is accurate. Acknowledge that no changes can be made after submission. Checking this box will activate the "SUBMIT" button.
2. Click the "SUBMIT" button on the landing page to finalize your GSTR-5 submission.
   • Note: Submitting the return will freeze all invoices uploaded for that specific month, preventing any further modifications.
3. Click "PROCEED" to confirm the submission, acknowledging that no changes can be made thereafter.
4. A success message will be displayed. Refresh the page.
   • The status of GSTR-5 will change to "Submitted" after this action.
5. Click the "PREVIEW" button again to download the submitted GSTR-5 in PDF format. This PDF will now bear the watermark of the final Form GSTR-5.
6. Upon submission, the GST Portal validates all entered data. If invalid data is found, error messages will highlight the areas requiring correction. If validation is successful, the portal computes tax liability and Input Tax Credit (ITC) claimed on imported goods. The Electronic Liability Register and Credit Ledger are updated accordingly.
7. After GSTR-5 submission, the following sections become active: "Tile 10A, 10B – Tax Liability", "Tile 11, 12, 14 – Tax Payable and Paid", the "Payment of Tax" tile, and the "FILE RETURN" button.

Initiating Tax Payment

Step 6: Process Tax Payment

1. Click the "Payment of Tax" tile.
   • Note: Tax liabilities declared in the return and available credits are updated in the ledgers and reflected in the "Tax payable" column of the payment section. Credits are updated in the credit ledger, and the balance can be viewed by hovering over credit headings in the payment section.
2. Click the "CHECK LEDGER BALANCE" button to view available balances for credit under Integrated Tax, Central Tax, State/UT Tax, and Cess. This allows taxpayers to verify balances before making payments.
3. The "Check Ledger Balance" page shows the minor head-wise balance in the cash ledger and major head-wise credit in the Electronic Credit Ledger. Click "OK" to return.
4. Enter the amount of credit to be utilized from available credit heads to settle liabilities, as well as any cash payments.
   • Note: If the Electronic Cash Ledger has insufficient balance, create a Challan and make a payment to update it. Ensure utilization principles for credit are followed, as the system will not permit liability offset otherwise.
5. Click the "OFFSET LIABILITY" button to settle your liabilities.
   • Note: Partial payment is not permitted.
6. Once the tax liability is offset, a confirmation message will appear. Click "OK".
7. Click on tile "11, 12, 14 – Tax Payable and Paid".
8. After payment, the paid tax amount will automatically populate Table 11, along with debit entry numbers generated from cash and ITC utilization. Click the "BACK" button to return to the previous page.

Step 7: Final GSTR-5 Filing

Click the "FILE RETURN" button.

1. The "Returns Filing for GSTR-5" page will open. Select the "Declaration" checkbox.
2. From the "Authorised Signatory" dropdown, select the appropriate signatory. This action will enable both "FILE WITH DSC" and "FILE WITH EVC" buttons.
3. Click either the "FILE WITH DSC" or "FILE WITH EVC" button to submit Form GSTR-5.
4. A success message will be displayed. Refresh the page and click the "BACK" button.
   • Note: The status of GSTR-5 will change to "Filed".

Checking GSTR-5 Status

To verify the status of your GSTR-5 return:

1. On the "File Returns" page, select the Financial Year and Return Filing Period (Month) for which you recently filed Form GSTR-5.
2. Click the "SEARCH" button.
3. The status of the GSTR-5 return will display as "Filed".