What does a return mean under GST : The primary features of the return mechanism in GST includes electronic filing of returns, uploading of invoice level information, auto-population of information relating to input tax credit from returns of supplier to that of recipient, invoice level information matching and auto-reversal of input tax credit in case of mismatch. The returns mechanism is designed to assist the taxpayer to file returns and avail ITC.
Is the return and return mechanism same for all type of Assesses : Under GST, a regular taxpayer needs to furnish monthly returns and one annual return. There are separate returns for a taxpayer registered under the composition scheme, non-resident taxpayer, taxpayer registered as an Input Service Distributor, a person liable to deduct or collect the tax (TDS/TCS), a person granted Unique Identification Number. It is important to note that a taxpayer is NOT required to file all the types of returns. In fact, taxpayers are required to file returns depending on the activities they undertake. The GST Council has however recommended to ease the compliance requirements for small taxpayers by allowing taxpayers with annual aggregate turnover up to Rs. 1.5 Crore to file details of outward supplies in FORM GSTR 1 on a quarterly basis and on monthly basis by taxpayers with annual aggregate turnover greater than Rs. 1.5 Crore. Further, GST Council has recommended to postpone the date of filing of Forms GSTR-2 and GSTR-3 for all normal tax payers, irrespective of turnover, till further announcements are made in this regard.
Today we will learn to vivisect the GSTR 5 Return of a non-resident taxable person and try to learn about its components or information which is required to be filed in the Return of non resident taxable person. But first let us know about this assessee “Non-resident taxable person.
A “non-resident taxable person” means a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India.
Why is it important and what is the due date for filing GSTR5 : It will contain all business details for non-resident (NR) including the details of sales & purchases. Information from GSTR-5 will flow into GSTR-2 of buyers. GSTR-5 is a monthly return due every 20th of next month. For instance, the return of March 2017 will be due on 20th April 2018.
Information to be provided in the return of non-resident taxable person : There are 14 headings in GSTR-5 format prescribed by the government. We have explained each heading along with the details required to be reported under GSTR-5.
| 1. GSTIN | Here one has to provide the GSTIN number allotted to him.
It is important here to note that the registration is of a temporary nature and is valid for the period specified in the application or 90 days from the effective date of registration, whichever is earlier. And Such a person can make taxable supplies only after the issuance of the certificate of registration. In all such cases, the non-resident taxable person must file GSTR-5 within 7 days after the last day of the period of registration. |
| 2. About the Taxpayer | Name of the taxpayer including legal and trade name (will be auto-populated)
➢ Validity period of registration : The validity period will also be auto-populated. ➢ Month, Year : Mention the relevant month and year for which GSTR-5 is being filed. |
| 3. Inputs/Capital goods received from Overseas (Import of goods) | The non-resident taxable person must report :
▪ Details of his inputs and capital goods imported into India. ▪ Details of Bill of entry along with rate of tax, IGST, cess paid and amount of ITC available.
Note: A Non-Resident taxable person will only have import inward supplies (purchases) |
| 4. Amendment in the details furnished in any earlier return | The Non-resident taxable person can change any details in imports furnished in earlier returns.
Such changes can be made in :
➢ Bill of entry ➢ Rate of IGST ➢ Taxable value ➢ Amount of IGST & Cess ➢ Amount of ITC now available ➢ Such varying amount of ITC (if excess will be reversed and vice versa)
Note: Both Original & Revised Details of Bill of Entry must be given for verification purposes. |
| 5. Taxable outward supplies made to registered persons (including UIN holders) | It will contain details of invoices of B2B sales in India including sales to UIN holders.
Note : Details of IGST/CGST & SGST & Cess along with State must be given. |
| 6. Taxable outward inter-State supplies to un-registered persons where invoice value is more than Rs 2.5 lakh | It will contain all details of B2C Large sales, i.e., inter-state sales (where invoice value is greater than Rs.2.5 lakhs) to unregistered persons. |
| 7. Taxable supplies (net of debit notes and credit notes) to unregistered persons other than the supplies mentioned earlier above | It contains the details of sales to unregistered dealers (B2C Others). Sales summary of intra-state and inter-State sales less than 2.5 lakhs must be reported here.
Note : Intra-state sales can be mentioned in a consolidated summary. But Inter-state sales summary must be mentioned state-wise. |
| 8. Modifications/Amendments to taxable outward supply details furnished in returns for earlier tax periods in Table 5 and 6 [including debit note/credit notes and amendments thereof] | It will carry any changes in details of B2B and B2C Large of previous months. Original debit notes and credit notes issued during the month will be furnished here. Amendments (if any) to invoices and debit & credit notes issued will also appear here. In case of revisions, original details have to mentioned. |
| 9. Outward supplies (amendments) to unregistered persons furnished in returns for Earlier tax periods in Table 7 | It will contain changes in details of B2C sales of previous months (originally disclosed in Table 7).
Note : Intra-state sales shall be mentioned in a consolidated summary. But Inter-state sales summary must be mentioned state-wise. |
| 10. Total Tax Liability | Here it will show the total tax liability.
A. On account of outward supply: This subheading will show details of tax liability for outward supplies for the current month.
B. Details of differential ITC being negative in Table 4: This will contain the additional tax to be paid due to reversal of ITC (i.e., differential ITC being negative) on making changes in any imports of earlier months (Table 4). |
| 11. Tax payable and paid | This part of the return will have the details of tax you are actually paying during the month. The breakup of IGST, CGST, SGST & Cess will be shown. The taxpayer can opt to pay through cash or use ITC. |
| 12. Interest, late fee and any other amount payable and paid | It will contain details of interest and late fee due and actually paid on account of late filing of return. |
| 13. Refund claimed from electronic cash ledger | It will contain the details of all refunds received into electronic cash ledger. The non-resident taxable person can select the bank account in which he wishes to claim the refund by selecting the Bank from drop down box or menu. |
| 14. The electronic cash/credit ledger (debits) for tax/interest payment [to be populated after payment of tax and submissions of return] | This segment of the return shows the debit entries in electronic cash ledger, i.e., cash outflow for payment of tax/interest/late fee.
Note : This information is populated after payment of tax and submissions of return. |
The final step in filing the GSTR 5 or any return for the case be is verification of the return either through EVC or through DSC. But since a non-resident taxable person is not a citizen of India holding Aadhaar Card for Electronic Verification Clearance (EVC) nor can he sign with DSC as he does not have a place of business in India, he can then only sign through his authorized representative mentioned at the time of registration who is resident of India holding a Valid PAN.
The importance of ERP Software is realized when for instance any return say if GSTR-5 return is not filed. The implications it will have is serious ones as then you cannot file your next month’s return. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty. So to avoid interest and penalties it is always good to file GST returns on or before the due dates and Tally.ERP 9 ensures this as part of its GST agenda to equip you with right tool to file your GST returns before the due date. Since GSTR 5 return has been made available recently on GST Portal we could believe that the module to file GST returns for non resident taxpayers would be available sooner on Tally.ERP 9 ERP Software platform and we can commence filing GSTR 5 from the Tally software with ease.
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