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GSTR-5 · Non-resident taxable person
GSTR-5 explained: returns for foreign businesses supplying in India
GSTR-5 is the monthly return for a non-resident taxable person, a business based abroad that makes taxable supplies in India through a temporary presence. The rules are different from the domestic regime: you register before the first supply, deposit the tax in advance and file each month for the period you operate. This guide sets out who it covers, the deposit rules and the mistakes that cause penalties.
Last reviewed 17 October 2026 · Independent guidance, not a government service
01 / The basics
Who GSTR-5 is for
A non-resident taxable person has no fixed place of business in India and no residence here, but still makes taxable supplies in the country. A typical case is an overseas company that sets up for a trade fair, an event, or a short project. The regime is built for supplies that are occasional and temporary.
Because the business does not stay in India, the tax has to be secured before the activity is complete. The registration, the advance deposit and the monthly return work together to make sure the tax is paid for every period of supply.
Temporary is not the same as exempt.
Short-term activity still needs GST registration if the supplies are taxable. Do not assume a short stay avoids the requirement.
02 / What the return covers
What GSTR-5 reports
| Part | What it records | Why it matters |
|---|---|---|
| Outward supplies | Taxable supplies made in India in the period | Sets the tax liability for the month |
| Inward supplies | Purchases on which tax is paid under reverse charge or otherwise | Shows any tax you need to account for |
| Tax paid | Amount deposited in the cash ledger, and any credit used | Matches the liability against the payment |
| Refund or adjustment | Any excess deposit or correction | Keeps the account in balance |
The return is filed for each tax period in which you are registered, so a month with no supplies still needs a return. Keep the invoices you issued and the purchase records that support any credit you claim.
03 / How to file and pay
A practical filing sequence
- 01
Register before supplying
Obtain your GSTIN before the first taxable supply in India, and keep the registration certificate with your records.
- 02
Estimate and deposit tax
Work out the expected liability for the period, and deposit it through the cash ledger before filing, as the rules require.
- 03
Record supplies and purchases
Log every taxable supply and eligible purchase with invoice details, dates and tax amounts.
- 04
File the monthly return
Enter the supplies and tax on the portal and check the figures against your records before submitting.
- 05
Reconcile the cash ledger
Confirm the deposit matches the liability. Claim any excess refund, and fix shortfalls in the next period.
04 / Advance tax and deposits
Why the deposit comes first
The advance deposit protects the department against unpaid tax from a business that may leave the country. It also makes the monthly return a reconciliation rather than a first payment. A deposit that is too small leads to interest on the shortfall, and a large one ties up cash until the return is filed.
Estimate the deposit using the expected sales for the period, and adjust it in the next period when the actual figures are known. Keep a record of how you calculated the estimate, so the reasoning is clear if the deposit is questioned.
05 / Avoid these
Common GSTR-5 mistakes
Skipping months with no activity
A nil period still needs a return where the registration is in force. A missed return attracts a late fee.
Under-depositing tax
A deposit that falls short of the liability generates interest, even when the return is filed on time.
Using the wrong return
Online services to Indian consumers by overseas providers follow the GSTR-5A regime, not GSTR-5.
Questions people ask
Frequently asked questions
What is GSTR-5?
GSTR-5 is the return filed by a non-resident taxable person, which is someone who occasionally makes taxable supplies in India without a fixed place of business or residence here. It reports the supplies made in each tax period, the tax due and the tax paid, and it is filed monthly for the period of activity.
Who has to file GSTR-5?
Non-resident taxable persons who register for GST in India must file GSTR-5 for each tax period in which they are registered. This includes a foreign business that sets up a temporary presence for an exhibition, a project or a trade fair.
When is GSTR-5 due?
GSTR-5 is due by the 20th of the month after the tax period. If your registration ends earlier, the return is due within 7 days of the end of the registration, whichever is earlier. Confirm the date for your own registration on the GST portal, as dates can be changed by notification.
Do I need to pay tax before filing GSTR-5?
Yes, in practice. A non-resident taxable person is expected to deposit the estimated tax before the return is filed, using the cash ledger. The return then reconciles the supplies to the tax already paid, so the deposit must cover the full liability for the period.
What is advance tax for a non-resident taxpayer?
Where the supplies cannot be estimated accurately, the taxpayer may need to deposit an estimated amount in advance. The deposit is adjusted against the liability once the return is filed, and any excess can be refunded through the usual refund process.
Can a non-resident claim input tax credit?
Input tax credit can be claimed on eligible purchases made for the taxable supplies in India, subject to the normal ITC conditions. Keep the purchase invoices and check that they are eligible, because credit on blocked items cannot be claimed.
What is the late fee for GSTR-5?
A daily late fee applies to a late GSTR-5, with a cap, and interest applies to tax paid after its due date. Check the current amounts on the portal, because the fee can change and can be reduced or waived by notification.
Does a non-resident need a GSTIN?
Yes. A non-resident taxable person must register and obtain a GSTIN before making taxable supplies in India, and the registration is generally for a fixed period. Apply before the first supply, as late registration can attract penalties.
Is GSTR-5 the same as GSTR-6 or GSTR-7?
No. GSTR-5 is for non-resident taxable persons. GSTR-6 is for the input service distributor and GSTR-7 is for tax deducted at source. Each form serves a different role, so make sure you are on the right one.
Is this page an official service?
No. GSTVibe is an independent guide and is not affiliated with GSTN or the tax department. We do not register taxpayers or file returns. Confirm the due dates, deposit rules and forms on the GST portal, and speak to an adviser about cross-border supplies.
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This guide is informational and is not legal or tax advice. GST rules, forms and portal steps change. Confirm the current position on the official GST portal (gst.gov.in) and CBIC sources, and speak to a qualified adviser about your own facts. GSTVibe is not affiliated with GSTN or the tax department.