Impact

Non Resident Taxable persons having business transactions attracting GST should be alert for the due date of April 20th : To file their GSTR-5 Return

Pioneer

Published:19th Apr, 2018 at 5:30 AM

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 creditfrom 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.

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 1on 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.

All the returns are to be filed online. Returns can be filed using any of the following methods:

1. GSTN portal (www.gst.gov.in )

2. Offline utilities provided by GSTN

3. GST Suvidha Providers (GSPs).

If a taxpayer is already using the services of an ERP providers such as Tally. ERP 9 there is a high likelihood that these ERP providers would provide inbuilt solutions in the existing ERP systems.

Today we will be talking about returns for a registered non-resident taxable person who has no fixed place of business in India. let us understand about this taxpayer, the type of returns they need to file, the due dates in which they want to file the return and the type of registration they will be allotted in GST India, the perquisites for obtaining such registration, the compliances they needed to follow and many more from the following table.

Who is a non-resident taxable person	CGST and SGST law defines the term Non Resident Taxable Person as: “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.
Type of Registration granted	Temporary Registration
Prerequisites for applying for Temporary Registration	No normal application required a Non resident foreign taxpayer has to make application in Form GST REG-01 and submit it electronically on GST portal along with the prescribed documents such as self attested copy of valid passport. Such persons should apply for registration at least 5 days before the commencement of business either directly or through a facilitation center. In case the non-resident taxable person is a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or it’s PAN, if available. GST REG-09 Form has to be signed by the authorized signatory appointed by the Non Resident tax payer in this regard and who shall be a person resident in India having a valid PAN. To deposit tax in advance for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought and such advance amount would be credited to the E cash ledger and Tax liabilities would be adjusted against this advance tax when ever the return period for such Non Resident foreign tax payer is filed.
Type of Registration Certificate issued and Validity of such Certificate	The Certificate of registration issued to a non-resident taxable person shall be valid for a period of ninety days from the effective date of registration. This period can be further extended to one hundred and eighty days in total with the approval of proper officer after expiration of the initial ninety days. There is a requirement of making an advance deposit of tax of an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought which is to be made at the time of submission of application for registration. In case of the extension of registration period beyond the period for which the initial registration was taken is required, then such taxpayers shall deposit an additional amount of tax equivalent to the estimated tax liability of such person for the additional tax period for which the extension is sought. The amount of amount deposited shall be credited to the electronic Cash ledger of the taxpayer and shall be utilized for discharge of his tax liability arising out of the actual supply of goods and/or services. So it is clear that these taxpayers are guaranteed with temporary registration and that too upon advancement of a sum equivalent to the estimated tax liability of such person.
Type of Return : To file	GSTR 5
Calendar to mark	For July to December Return : 31^st Jan 2018 For Jan till today : 20^th of the following month (For March Month Return : 20^th April 2018)
Features of GSTR 5 Return	Any person acting as principal or through his agent or in any other capacity, but who has no fixed place of business or residence in India can enroll under GST through a temporary registration for a specific validity period This is the GST return form for registered non-resident foreigners doing business in India without having fixed establishment in India where he is making supply of goods and or Services. And one can file the return that is required to be filed under this act from a Facilitation Centre or either directly by him by interacting at the GST portal. The details of outward and inward supplies will be furnished in a single Form GSTR 5 is to be filed and the tax (including penalty, fees, interest, etc.) is to be paid every month (for the registration period) by 20th of the next month for a particular tax period or within seven days after the end of the validity period of registration.
Filing and Compliance requirements	Non-resident taxable person shall be required to file their Return of Outward supplies, Return of Inward supplies and Monthly returns for the period during which they are registered. The tax period for these taxpayers shall be a complete month or part thereof depending on the time for which such taxpayers are registered. And also they are exempt from filing of Annual Return.

To sum it up a non-resident foreign taxpayer will be granted a temporary registration certificate on prior application action of the same in GST REG-09 Form and would be required to file details about inward supplies imported into Indian territory by him in his return in the Form GSTR 5. So if you are a non resident foreign tax payer operating in India then you would have to be GST ready and Tally.ERP 9 could be a GST partner for you on accountability of simplification, excellency in GST reporting standards and easiness in filing GST returns and beside it is also a knowledge gateway to the world of GST era wherein one can settle off all the ambiguities he has regarding interpretation of GST law with the help of its community forums which Tally.ERP 9 has build on its official website. You can have access of the same and stand to gain by knowing more about GST law and updates.