GSTR-5 is the monthly GST return specifically designed for non-resident foreign taxpayers who conduct business transactions within India. Non-resident taxable persons must obtain temporary GST registration before commencing business activities in India and file GSTR-5 for each month of their registration period. The return records all outward supplies (sales), inward supplies (purchases), and the tax paid during the operating period.
Who Is a Non-Resident Taxable Person Under GST?
A non-resident taxable person (NRTP) is any person who occasionally undertakes transactions involving the supply of goods or services (or both) in India but does not have a fixed place of business or residence in the country. This category typically includes foreign companies exhibiting at trade fairs in India, foreign consultants providing on-site services for a limited period, overseas suppliers making occasional taxable supplies in India, and foreign entities participating in government tenders or contracts requiring temporary presence.
NRTPs must obtain a temporary GST registration at least five days before commencing business in India. The registration is granted for a specified period (typically the duration of the business activity) and can be extended if required. The NRTP must pay the full estimated tax liability in advance through a challan at the time of registration.
NRTP vs Regular Taxpayer
| Feature | Non-Resident Taxable Person | Regular Resident Taxpayer |
| Place of business in India | No fixed place of business | Has a permanent establishment |
| Registration type | Temporary (for a specified period) | Permanent |
| Advance tax deposit | Mandatory at time of registration | Not required upfront |
| Return filed | GSTR-5 (monthly) | GSTR-1 and GSTR-3B |
| ITC eligibility | Limited to goods imported or purchased from registered persons | Full ITC on eligible inputs |
| Composition Scheme | Not available | Available if eligible |
| Filing deadline | 13th of the following month or 7 days after registration expiry | 11th (GSTR-1), 20th (GSTR-3B) |
| E-way bill | Required for goods movement within India | Required for goods movement above Rs. 50,000 |
Structure of GSTR-5
GSTR-5 captures comprehensive details of the NRTP’s business activities during the tax period. The return is structured into several tables covering different aspects of the taxpayer’s transactions.
| Table | Description | Details Required |
| Table 1 | GSTIN | Auto-populated 15-digit temporary GSTIN |
| Table 2 | Legal and trade name | Name of the non-resident entity |
| Table 3 | Inward supplies from registered persons | Supplier GSTIN, invoice details, taxable value, ITC claimed |
| Table 4 | Amendments to inward supply details | Corrections to previously reported inward supplies |
| Table 5 | Outward supplies | Invoice details for all sales made during the period |
| Table 6 | Amendments to outward supplies | Corrections to previously reported outward supplies |
| Table 7 | Tax, interest, and late fee are payable and paid | Summary of total liability and payments made |
| Table 8 | Refund claimed | Details of any excess tax paid and refund requested |
Prerequisites for Filing GSTR-5
Before initiating the GSTR-5 filing process, the non-resident taxpayer must satisfy several conditions:
• A valid temporary GST registration with an active GSTIN
• Valid login credentials (User ID and password) for the GST portal
• A valid, non-expired Digital Signature Certificate (DSC) for companies and LLP/FLLP entities; Electronic Verification Code (EVC) is acceptable for other entity types
• All inward supply invoices received from Indian registered suppliers
• Complete records of all outward supplies made during the tax period
• Payment challan details for the advance tax deposited at the time of registration
Step-by-Step Filing Process
Step 1: Log in to the GST Portal
Access the official GST portal and log in using the NRTP’s temporary GSTIN and password.
Step 2: Navigate to GSTR-5
From the Services menu, select Returns, then Returns Dashboard. Choose the relevant financial year and month from the dropdown menus. Click Search to load the return. On the GSTR-5 tile, click Prepare Online.
Step 3: Enter Inward Supply Details (Table 3)
Enter details of all goods and services purchased from registered Indian suppliers. For each invoice, provide the supplier’s GSTIN, invoice number and date, taxable value, and the GST amount paid. The ITC available on these inward supplies will be auto-calculated based on the entries.
NRTPs can claim ITC only on goods imported into India or on goods purchased from registered persons in India. ITC on services is limited to services received from registered persons. The credit can be used to offset the output tax liability for the same period.
Step 4: Enter Outward Supply Details (Table 5)
Record all sales made during the tax period. For B2B supplies, enter the recipient’s GSTIN, invoice number and date, HSN code, taxable value, and applicable GST rate. For B2C supplies, enter consolidated rate-wise summaries.
Export supplies from India are reported separately with shipping bill details and port codes. Supplies to SEZ units must include the SEZ unit’s GSTIN.
Step 5: Enter Amendments (Tables 4 and 6)
If corrections are needed to inward or outward supply details reported in previous months’ GSTR-5, enter the amendments in Tables 4 and 6, respectively. Provide the original invoice reference and the corrected values.
Step 6: Review Tax Liability and Payments (Table 7)
Table 7 automatically calculates the total tax liability based on outward supplies and compares it with the advance tax deposited and the ITC available. The system shows the net tax payable or the refund due. If additional tax is payable beyond the advance deposit and ITC, generate a challan and make the payment before filing.
Step 7: Claim Refund (Table 8)
If the advance tax deposited exceeds the actual liability after adjusting ITC, the NRTP can claim a refund of the excess amount through Table 8. The refund is processed after the registration validity period ends and all returns are filed.
Step 8: Preview and Submit
Review the complete return by clicking the Preview button. Verify all figures against your transaction records. Submit using DSC (mandatory for companies and LLPs) or EVC (for other entities). An ARN is generated upon successful filing.
Key Compliance Requirements
NRTPs must be aware of several compliance obligations unique to their registration type:
• Advance tax deposit. The full estimated tax liability for the registration period must be paid upfront. If the actual liability exceeds the advance, an additional payment must be made before filing GSTR-5.
• Registration extension. If business activities continue beyond the initial registration period, the NRTP must apply for extension before the current registration expires. Extension requires an additional advance tax deposit.
• Final return. GSTR-5 for the last month of the registration period must be filed within 7 days of the registration validity ending, not by the regular 13th-of-the-month deadline.
• No annual return. NRTPs are not required to file GSTR-9 (annual return). GSTR-5 for each month serves as the complete compliance record.
• Refund timeline. Excess advance tax refunds are processed only after the registration period ends, and all GSTR-5 returns are verified and accepted.
Key Terms
• Non-Resident Taxable Person (NRTP): A foreign person who occasionally undertakes taxable supplies in India without having a fixed place of business or residence in the country
• GSTR-5: The monthly GST return filed by non-resident foreign taxpayers, capturing all inward supplies, outward supplies, and tax payments during their registration period
• Temporary GSTIN: The 15-digit GST identification number assigned to an NRTP for the specified duration of their business activity in India
• Advance Tax Deposit: The mandatory upfront payment of estimated tax liability that NRTPs must make at the time of obtaining temporary GST registration
• Registration Validity Period: The specific duration for which the NRTP’s temporary GST registration is active, typically matching the duration of their business activity in India
Conducting Business in India as a Non-Resident?
Ensure your temporary GST registration and GSTR-5 filings are compliant. Use WFYI resources to understand NRTP obligations, calculate advance tax deposits, and file returns on time.
| Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Consult a qualified tax professional for advice specific to your situation. |
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Frequently Asked Questions
Q1: Who is required to file GSTR-5?
GSTR-5 must be filed by all non-resident foreign taxpayers who have obtained temporary GST registration for conducting business activities in India. This includes foreign companies at trade fairs, overseas consultants providing on-site services, and foreign entities fulfilling contracts in India.
Q2: What is the due date for filing GSTR-5?
GSTR-5 must be filed by the 13th of the month following the reporting period (revised from the 20th effective February 1, 2022). For the final month of registration, it must be filed within 7 days of the end of the registration validity period.
Q3: Can a non-resident taxpayer claim Input Tax Credit?
Yes, but with limitations. NRTPs can claim ITC only on goods imported into India or purchased from registered Indian suppliers. The credit can be used to offset output tax liability for the same period, but cannot be carried forward beyond the registration period.
Q4: Is advance tax payment mandatory for non-resident taxpayers?
Yes. NRTPs must pay the full estimated tax liability in advance at the time of obtaining temporary GST registration. If actual liability exceeds the advance deposit, an additional payment must be made before filing GSTR-5.
Q5: How does an NRTP claim a refund of excess advance tax?
If the advance tax deposited exceeds the actual liability after ITC adjustment, the NRTP can claim a refund under Table 8 of GSTR-5. The refund is processed after the registration period ends and all monthly GSTR-5 returns are filed and verified.
