GST Return GSTR-5: Meaning, Format, Eligibility, and Penalties

GSTR-5 or Goods and Services Return – 5 is a statement that is to be filed by taxpayers registered as non-residents under the GST Act. These are the persons who do not own any fixed business establishments in India but make sales and purchases in the country. A detailed report of purchases and sales is provided in the GSTR-5 return form.

Under the GST regime, non-resident taxpayers are those suppliers who do not have a registered business establishment or arrangement in India. Such persons could be involved in in the supply of goods/services or data retrieval services from database situated outside the country. Also note that the minimum threshold limit is not applicable in such cases. This implies that irrespective of the transaction amount and frequency, these persons are required to register on the GST portal as per the GST Act 2017. Such non-resident taxpayers must file their returns using the GSTR-5.

The eligibility criteria of filing GSTR-5 include these factors:

• Taxpayers who are registered as non-residents and possess a valid GSTIN number
• They must have valid login credentials for accessing GST portal online
• They must have a valid digital signature

Below-mentioned are the details of the 14 headings which constitute the format of GSTR-5:

GSTR-5 return form can be filed with the help of the following steps:

According to the GST Act, the GSTR-5 filing due date is the 20th of every month of a financial year. This can be better explained with the help of the following table for the upcoming months of FY 2023-24:

A delay in filing GSTR-5 within the specified deadline will attract hefty late fees and interest.

• The taxpayer will be liable to pay 18% of interest on the outstanding amount as a penalty.
• A late fee of ₹20 is imposed every day, starting from the 21st of the month if the taxpayer is filing a nil return. If it is otherwise, ₹50, will be charged.
• As per the Act, taxpayers can be charged with a maximum limit of ₹5000 as a penalty.