RETURN FOR NON-RESIDENT TAXABLE PERSON (FOREIGNERS) UNDER GST LAW
Every registered non-resident taxable person is required to furnish a return in GSTR-5 electronically through the Common Portal. This can be done directly or from a Facilitation Centre. GSTR-5 requires business details for non-resident including the details of outward supplies and inward supplies.
Basis such information registered foreign taxpayer shall pay the tax, interest, penalty, fees etc. within twenty days after the end of a tax period or within seven days after the last day of the validity period of registration, whichever is earlier.
Who is a Non-Resident Foreign Taxpayer?
Non-Resident foreign taxpayers are those suppliers who do not have a business establishment in India and have come for a short period to make supplies in India. Such person is required to furnish details of all taxable supplies in GSTR-5
Below we have provided various heads under which information needs to be furnished:
- GSTIN – Each taxpayer will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). A format of proposed GSTIN has been shown in the image below. GSTIN of the taxpayer will be auto-populated at the time of return filing.
- Name of the Taxable Person – Name of the taxpayer, will also be auto-populated at the time of logging into the common GST Portal.
- Address – Business address of the composition dealer will get auto-populated here.
- Period of Return – A Taxable person is required to select from a drop down the relevant month and year respectively for which GSTR-5 is being filed.
- Goods Imported – This section will hold details of all physical goods that have been supplied into a taxable territory in India. This includes the Bill of Entry No. 8-digit HSN code and other basic description of the goods imported.
- Amendments in Goods imported of earlier tax periods – Any subsequent modification in the bill of entry and eventual change in IGST rate and the amount will need to be reported under this head. Here the authorized person is also required to furnish details of the original bill of entry.
- Import of Services – Under this head, the foreign taxpayer is required to furnish details of services received from a supplier located outside India. This is a case wherein one foreign taxable person has received services from another foreign taxable person in Indian Territory
- Amendments in Services received from a supplier located outside India – Any subsequent modification in service invoice and eventual change in IGST rate and the amount will need to be reported under this head. This modification will also result in IGST credit admissibility.
- Outward Supplies made – Once all the details of inputs are captured, the foreign taxpayer is required to furnish details of outward supplies or sales in simple words under this head. This will be a GSTIN based entry wherein GSTIN of the buyer must also be reported. The Foreign taxable person is required to furnish this information along with the complete break-up of IGST, CGST and SGST charged.
- Amendments to the details in Outward Supplies – Any kind of modification in outward supplies of previous taxable period/months is required to be made under this head. This will include revised particulars of the new invoice issued for such amendments.
- Details of Credit/Debit Notes – All debit/credit notes raised by the foreign taxable person must be reported under this heading. Needless to say, Counter-party debit note will result in foreign taxpayer’s credit note and vice versa. Differential taxable value and differential tax will also get calculated here.
- Amendment to Details of Credit/Debit Notes of earlier tax period – Further in case any amendment is made with respect to debit/credit notes issued in the earlier tax period in current month needs to be reported under this head.
- Tax Paid – This heading will take input from all the headings above and will determine the final GST liability. Separate tax liability will be shown against IGST, CGST, and SGST. Here the taxpayer will have the option to debit cash ledger/ credit ledger against the liability outstanding.
- Closing Stock of Goods – The Non-registered foreign taxpayer is required to furnish details of complete closing stock. This is also relevant in the case of last return if GST registration was sought for a temporary period.
- Refund Claimed from Cash Ledger – Any amount of refund received into the bank account from Electronic Cash Ledger will get auto populated here.