GSTR-5: GST Return for Non-Resident Taxable Persons

GSTR-5 is a GST return specifically designed for non-resident taxable persons operating in India. If you are a foreign business conducting taxable activities in India for a short period, GSTR-5 is the return you need to understand. It is one of the more specialised returns in the GST framework, applying to a distinct category of taxpayers.

Who is a Non-Resident Taxable Person?

A non-resident taxable person (NRTP) is any person who occasionally undertakes transactions involving the supply of goods or services in India, but who does not have a fixed place of business in India.

Examples include foreign companies exhibiting at trade shows in India, overseas service providers conducting temporary training programmes in India, or foreign entertainers performing at events in India.

NRTPs must register for GST before starting business in India, even if temporarily, and must file GSTR-5 for each registration period.

What is GSTR-5?

GSTR-5 is the monthly return that non-resident taxable persons must file for each month (or part thereof) they are registered and conducting business in India. It captures all outward supplies made and inward supplies received during the period.

Key Features of GSTR-5

**Advance Deposit Requirement**
Before receiving a GSTIN, an NRTP must deposit an estimated GST liability for the entire registration period in advance. This is a pre-condition for registration.

**Short Registration Period**
NRTP registration is typically granted for 90 days, extendable by a further 90 days on application. Once the business activity ends, the registration must be cancelled.

**Import of Goods**
NRTPs frequently import goods for exhibitions or events. IGST paid on imports serves as Input Tax Credit that can be set off against output tax liability.

Due Date for GSTR-5

GSTR-5 must be filed by the **13th of the month following** the tax period. Additionally, GSTR-5 must be filed within seven days after the expiry of the registration period (if the registration period is shorter than a full month).

Contents of GSTR-5

GSTR-5 includes:

– Details of outward taxable supplies (goods or services sold in India).
– Details of inward supplies, including imports.
– Details of credit/debit notes issued.
– Tax liability for the period.
– Tax paid via the advance deposit or Electronic Cash Ledger.
– Refund claimed from the advance deposit (if tax liability was less than the advance paid).

Refund of Advance Deposit

If the actual tax liability during the registration period is less than the advance deposit made at the time of registration, the NRTP can claim a refund of the excess. This refund is processed after the final GSTR-5 is filed and verified.

Practical Example

TechExpo GmbH, a German company, participates in a technology exhibition in Bengaluru for 15 days in February 2025. It registers as an NRTP in India, deposits Rs. 2 lakhs as advance GST. During the exhibition, it makes taxable supplies worth Rs. 8 lakhs and the GST liability is Rs. 1.44 lakhs. It files GSTR-5 by March 13, 2025, and claims a refund of Rs. 56,000 (the excess advance deposit).

Key Differences from a Regular Taxpayer

– NRTPs cannot opt for the composition scheme.
– They must deposit estimated GST upfront before receiving registration.
– They cannot carry forward ITC beyond the registration period.
– GSTR-5 is simpler than GSTR-1 and GSTR-3B combined, as it handles both outward and inward supplies in one form.

Key Takeaways

– GSTR-5 is filed by non-resident taxable persons who conduct business in India temporarily.
– Registration is valid for up to 90 days (extendable by another 90 days).
– An advance GST deposit is required before the GSTIN is issued.
– Due date: 13th of the month following the tax period, or within 7 days of registration expiry.
– Excess advance deposits can be refunded after the final GSTR-5 is filed.
– NRTPs cannot claim carry-forward ITC beyond their registration period.

If your foreign company is planning activities in India that involve taxable supplies, understanding the NRTP registration and GSTR-5 filing process in advance will help you stay compliant and recover excess deposits efficiently.