Everything You Need to Know About GSTR 5A Return

With the rise of cross-border digital services, India’s GST system has introduced the GSTR-5A return. This is mandatory for non-resident service providers offering Online Information and Database Access or Retrieval (OIDAR) services to Indian consumers. Find out more about this key GST return.

Knowing the GSTR 5A return is essential for both service providers and consumers, as it helps maintain business compliance with Indian tax laws.

What is GSTR-5A Return?

If you are a non-resident OIDAR service provider offering services to non-taxable persons in India, you must file GSTR-5A every month. These services are entirely digital, delivered over the internet without any direct physical interaction.

It makes sure that non-resident digital service providers, including e-books, streaming platforms, software downloads and cloud services, follow Indian tax regulations by charging and paying GST on services used in India. It is important to note that you cannot file a GSTR-5A form for the current period but for the previous tax period.

What is OIDAR?

OIDAR stands for Online Information and Database Access or Retrieval Services and they exist as digital delivery systems through automated processes. Online users of these services do not require direct contact with providers for service access. The implementation of GST applies to digital services used by Indians even though the providers maintain operations outside of India.

What are OIDAR Services?

OIDAR services are delivered through electronic networks and Internet platforms using very little human participation. Users normally access these services through the internet. The following services make up OIDAR examples:

• E-books, music and video access: Purchasing an e-book or subscribing to a digital media platform falls under OIDAR services.
• Cloud-based services: Services that offer cloud storage or software access, such as hosting and Software-as-a-Service (SaaS), are part of OIDAR.
• Digital advertising: Online platforms providing advertising services to Indian customers.
• Online gaming: Websites or applications that offer interactive games or downloadable game content via the internet.
• Streaming platforms: Services that allow users to watch movies, TV shows and other digital content online.

Who Should File GSTR-5A Return?

Non-resident OIDAR service providers must file a GSTR-5A return to report their digital services offered to unregistered individuals and non-business recipients including government bodies and local authorities in India. The GST liability becomes the responsibility of the registered recipient through the reverse charge mechanism for all services received from non-resident providers.

The non-resident OIDAR provider must file GSTR-5A to handle payment of taxes when they give services to unregistered individuals or entities who use them for personal rather than business purposes.

?feature=shared

What Is the Importance of GSTR-5A?

GSTR-5A return plays a vital role in ensuring that non-resident service providers fulfil their tax obligations when offering digital services to consumers in India. As cross-border digital transactions become more prevalent, this return helps the government track and collect GST on such services.

Key Features of GSTR-5A

GSTR-5A return simplifies tax reporting for non-resident OIDAR service providers by enabling them to declare the services supplied and determine the GST payable. Below are the key aspects of GSTR-5A:

1. No Input Tax Credit (ITC)

Since OIDAR providers operate from outside India, they are not eligible to claim Input Tax Credit (ITC) on GST paid for any services used within India. As a result, an electronic credit ledger is not maintained for GSTR-5A return.

2. Monthly Filing Obligation

GSTR-5A must be submitted every month by the 20th of the following month. For instance, services provided in August require filing by September 20th.

3. Mandatory for Non-Resident OIDAR Service Providers

Non-resident digital service providers offering services to unregistered individuals in India must file GSTR-5A, even if no business activities occurred during a given period.

4. Nil Return Filing Requirement

Even if no services were provided in a particular tax period, non-resident service providers must still submit a nil return for GSTR-5A.

Pre-requisites for Filing GSTR-5A

Before submitting Form GSTR-5A, ensure you meet the following requirements:

1. Service Details: Collect all necessary data related to OIDAR services provided during the period, including any required amendments or adjustments from previous period returns.
2. GST Registration: You must be registered as a non-resident taxable person under GST and have your GSTIN ready. Also, ensure your login credentials for the GST portal are set up.
3. Digital Signature Certificate (DSC): A valid DSC is mandatory for non-resident taxpayers to electronically sign and submit the GST returns.
4. Invoice Information: Organise all invoice-related details, as accurate data entry is crucial for GSTR-5A filing.

Filing Procedure for GSTR-5A Return

Non-resident OIDAR service providers must file GSTR-5A to report taxable supplies made to unregistered individuals or entities in India. This process ensures compliance with tax regulations and accurate reporting of transactions. Here is a detailed step-by-step guide to filing this monthly return for unregistered persons on the GST portal.

Step-by-Step Guide to Filing GSTR-5A Return

The following are the steps you need to follow to file the GSTR-5A form:

Step 1: Log in to the GST Portal

Access the GST portal using your credentials.

Step 2: Navigate to GSTR-5A and Select the Return Period

• Go to the 'Services' section. Then click 'Returns' and next 'Returns Dashboard'.
• Select the Financial Year and Return Filing Period (Month) and click 'Search'.
• Tap the 'Prepare Online' button.

Step 3: Enter Supply Details in GSTR-5A

Provide the required information in the following sections:

1. Tile 5 – Taxable Outward Supplies to Consumers in India
   • Press Tile 5 and then provide the required details.
   • Choose the ‘Place of Supply’, input the ‘Tax Rate’, ‘Taxable Value’, and the ‘Tax Amount’, and hit the ‘Add’ button.
   • If multiple tax rates apply in a state, repeat the process for each rate separately.
   • Once all details are entered, tap ‘Save’ to store the information.
2. Tile 5A – Amendments to Outward Supplies to Non-Taxable Persons in India
   • Tap Tile 5A and select the ‘Place of Supply’, Month and Year of filing to view existing entries.
   • To make changes, click ‘Add Details’, update the ‘Taxable Value’, ‘Tax Amount’ or ‘Tax Rate’, and click Add.
   • Note: The Place of Supply cannot be modified after entry.
   • Tap ‘Save’ to store the amendments.
3. Tile 6 – Interest or Other Amounts
   • Hit the ‘Tile 6’ button and select the ‘Place of Supply’ from the dropdown.
   • Enter details related to interest, penalties or arrears under Integrated Tax and Cess, then tap the ‘Save’ button.

Step 4: Preview the GSTR-5A Draft

Click ‘Preview Draft’ to generate and review a PDF version of your GSTR-5A before submission.

Step 5: Initiate Filing and Verify Payment

• Choose the ‘Initiate Filing’ option to lock the entered data for that month.
• Ensure your Electronic Cash Ledger has sufficient balance to cover the tax liability. If not, create a challan on the GST portal and make the payment.
• Once the payment is reflected, proceed to offset the liability and file GSTR-5A.
• Click 'Confirm' and 'Submit' to finalise the return. After submission, the return status will update to 'Submitted'.

Step 6: Offset Liabilities

Depending on the payment method used:

1. If the liability is not yet paid through the CBEC Portal
   • Tap ‘Tile 7’ to view pending payments.
   • Click on the ‘Check Ledger Balance’ option to verify available funds.
   • Select ‘Offset Liability’, enter the required amounts and confirm the payment.
   • The system will generate a debit number for reference.
2. If the liability has already been paid through the CBEC Portal
   • Click 'Paid at CBEC Portal' and select 'Yes'.
   • Enter the Reference Number and Payment Date as generated on the CBEC Portal.
   • Once verified, the system updates the Electronic Liability Register.

Step 7: File GSTR-5A Using DSC or EVC

• Tick the Declaration box.
• Choose the ‘Authorized Signatory’ option from the provided dropdown menu list.
• Select from the options to either File GSTR-5A with DSC or File GSTR-5A with EVC depending on the authentication options available.

The system displays a confirmation message after successful filing is done and the status will change to filed.

After Filing GSTR-5A

• A confirmation email and SMS will be sent to the authorized signatory.
• Tap the ‘Download Filed Return’ option to save a copy of the submitted GSTR-5A for future reference.

What Happens if GSTR-5A Return is Not Submitted?

Failing to submit the GSTR-5A return form on time or correctly can lead to certain consequences which are as follows:

• Legal Implications

Repeated non-compliance with GST filing rules may result in additional penalties or legal actions by the tax authorities.

• Restriction on Future Filings

If a return for a specific tax period is not submitted, the service provider cannot file returns for the following periods until the pending ones are cleared.

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

Timely submission of GSTR-5A remains vital for non-resident OIDAR service providers because non-compliance brings penalties with legal consequences. However, remember there is no penalty for late filing of the GSTR-5A form. 

Key Differences Between GSTR-5 and GSTR-5A

The following table highlights the key difference between GSTR-5 and GSTR-5A returns:

Parameters	GSTR 5	GSTR 5A
Scope of Transactions	Covers both goods and services supplied to registered and unregistered recipients	Specifically deals with online services provided to unregistered individuals in India
Eligibility	Applicable to non-resident taxpayers supplying taxable goods or services in India	Applicable to non-resident OIDAR service providers delivering electronic or digital services
Due Date	The due date for GSTR-5 is either the 13th of the following month or seven days after the taxpayer’s registration period ends, whichever is earlier	The deadline for filing GSTR-5A is the 20th of the following month.
Input Tax Credit (ITC)	Eligible to claim ITC for purchases made during their temporary business operations in India.	ITC cannot be claimed. All taxes must be settled via the Electronic Cash Ledger
Example Scenarios	A foreign company selling products at an Indian trade exhibition or providing consulting services	Digital service providers offering cloud storage, streaming services, or digital content to Indian consumers

Conclusion

Timely and accurate filing of the GSTR-5A return is essential for non-resident OIDAR service providers to stay compliant with GST regulations. It helps maintain clear financial records and boosts credibility with authorities and financial institutions.

Additionally, consistent GSTR-5A return compliance can enhance a business’s chances of securing loans, supporting its financial stability and expansion. Beyond just regulatory compliance, effective management of GSTR-5A returns can open doors to better financial opportunities.

💡If you want to streamline your payment and make GST payments via credit or debit card, UPI consider using the PICE App. Explore the PICE App today and take your business to new heights.

FAQs