Understanding GSTR-5A: A Comprehensive Guide for Non-Resident OIDAR Service Providers

GSTR-5A represents a distinct monthly Goods and Services Tax (GST) return. This guide provides an in-depth explanation of GST return requirements specifically for non-resident entities that offer Online Information and Database Access or Retrieval (OIDAR) services. Recent Update As of June 7, 2025, the GST Network (GSTN) has issued an advisory introducing a new restriction. Taxpayers are now unable to file their GSTR-3B returns if three years have passed since the original due date. This change will be enforced on the GST portal starting from the July 2025 tax period.

Understanding Online Information and Database Access or Retrieval (OIDAR)

Modern businesses frequently operate beyond national borders. The internet serves as a primary channel for delivering services into India from overseas. Numerous frameworks exist for providing these services to consumers. For instance, cloud computing services, such as those offered by Amazon Web Services (AWS) from the United States to users in India, exemplify these offerings. The term "Online Information and Database Access or Retrieval" (OIDAR) commonly refers to these types of services. Essentially, OIDAR services are a classification of digital services delivered via the internet, where the recipient can access them without requiring a physical interaction with the service provider. OIDAR services have been incorporated into the GST framework to ensure that domestic service providers maintain a competitive edge, particularly concerning costs.

GST Implications for OIDAR Services

OIDAR services are subject to taxation under the GST system. A specific return, Form GSTR-5A, is mandated for OIDAR service providers who furnish services to unregistered recipients within India. These services can be received by two distinct categories of recipients:

Registered Persons or Entities

For services acquired by a registered person or entity, GST liability is managed via the reverse charge mechanism. This means the service recipient is responsible for remitting GST to the government. Consequently, these recipients must account for such services when filing their respective GST returns.

Unregistered Persons, Government Bodies, or Local Authorities

When OIDAR services are rendered to unregistered individuals, government organizations, or local authorities, the service provider becomes responsible for paying GST to the government. In these instances, the services should be for non-commercial or non-business purposes. GSTR-5A is the designated form for filing returns related to services provided to these types of recipients.

Compliance Mandates for Non-Resident OIDAR Service Providers

GSTR-5A Filing Obligations

Under the relevant regulations, Form GSTR-5A must be submitted monthly. The deadline for filing GSTR-5A is the 20th day of the subsequent month. For example, services rendered in March 2025 would require GSTR-5A to be filed by April 20, 2025. Several crucial conditions and considerations apply when preparing and submitting GSTR-5A:

• The return must be filed even if no business activity occurred during a tax period (a "Nil return" is required in such cases).
• Submission of GSTR-5A is compulsory for non-resident OIDAR service providers.
• Input Tax Credit (ITC) cannot be claimed in GSTR-5A, and consequently, an electronic cash ledger for this return is not maintained.
• The return can only be filed after all due taxes and other payable amounts have been settled.
• The current period's return cannot be filed before the return for the preceding tax period has been submitted.

The GSTR-5A format includes several tables for reporting essential information:

• Table 1: GSTIN of the supplier.
• Table 2: Legal name and trade name (if applicable) of the registered person.
• Table 3: Name of the authorized representative in India responsible for filing the return.
• Table 4: Reporting period (month and year).
• Table 5: Details of taxable outward supplies provided to Indian consumers, encompassing place of supply, tax rate, taxable value, integrated tax, and cess.
• Table 5A: Adjustments or amendments to taxable outward supplies made to non-taxable individuals in India for prior periods.
• Table 6: Calculation of any interest, penalty, or other amounts.
• Table 7: Breakdown of tax, interest, late fees, and other amounts due and paid.

Upon successful submission of GSTR-5A, an acknowledgment is generated and automatically dispatched to the taxpayer via email.

Penalties for Delayed GSTR-5A Filings

Should there be a delay in submitting Form GSTR-5A, specific late fees will be imposed:

Frequently Asked Questions

• What is the Goods and Services Tax (GST) in India? GST is a comprehensive indirect tax introduced in India on July 1, 2017, replacing multiple cascading taxes levied by the central and state governments. It is levied on the supply of goods and services.
• Who is required to register for GST in India? Businesses whose aggregate turnover exceeds a specified threshold limit (which varies based on the nature of supply and state) are required to obtain GST registration. Certain businesses, like those making inter-state taxable supplies or OIDAR service providers to unregistered persons, need mandatory registration irrespective of turnover.
• What are the main types of GST levied in India? The main types are CGST (Central GST), SGST (State GST), UTGST (Union Territory GST), and IGST (Integrated GST). CGST and SGST/UTGST are levied on intra-state supplies, while IGST is levied on inter-state supplies and imports.
• How does Input Tax Credit (ITC) work under GST? ITC allows registered businesses to claim credit for the GST paid on purchases of goods or services used for making taxable supplies. This mechanism avoids the cascading effect of taxes, ensuring tax is only paid on the value added.
• What is the significance of the GST Council? The GST Council is the governing body for GST in India, chaired by the Union Finance Minister. It makes recommendations on various aspects of GST, including tax rates, rules, procedures, and threshold limits, aiming for a unified tax system.