GSTR-5: Importance, Applicability, and Due Date

Every person who is registered under the category of Non-Resident Taxable Person needs to furnish GSTR-5. So, in this blog, we will discuss GSTR-5 applicability and due-date.

What is GSTR-5?

GSTR-5 is a type of GST return that needs to be furnished by all those taxpayers who are registered as non-resident taxable persons under GST. So, the question arises who is a non-resident taxable person? So, Non-Resident Taxable Person (NRTP) is a taxable person who comes in the taxable territory of India to make certain supplies and who does not have any business establishment in India.

Importance of GSTR-5

NRTP needs to file GSTR-5 as it will consist of every detail regarding inward supplies and outward supplies. These details will auto-populate in the GSTR-2A of the recipient.

Due Date of GSTR-5

The due date to furnish GSTR-5 is the 20th of every subsequent month. For example, the GSTR-5 of Dec 2021 will be due on 20th Jan 2021.

Registration of NRTP under Section 27

Under Section 27 of the CGST Act, the NRTP is issued a temporary certificate of GST registration valid for 90 days. These 90 days can be further extended by the GST authority if proper reasons are given. Once, the NRTP receives this certificate he/she is allowed to carry out transactions. However, it shall be noted that the taxpayer needs to file GSTR-5, 7 days before the expiry of such a temporary GST registration certificate.

Consequences of Late Filing or Non-Filing of GSTR-5

If the NRTP does not file GSTR-5 on time, then heavy penalties and fines will be imposed on such individuals. In the case of late filing of GSTR-5, the NRTP will be entitled to pay interest at the rate of 18% per annum. Moreover, he/she may also need to pay late fees of INR 50 per day and INR 20 in case of nil GSTR-5. However, the maximum late fee that can be levied is INR 5,000.