GSTR 5A GST For Non-Resident OIDAR Service Providers

Concept of OIDAR

OIDAR is Online Information and Database Access or Retrieval. This is a service provided by using the medium of internet. The services under this is received by the service recipient without having any physical interface with the provider of the service. In this scenario of modernization business are not bounded nationally but spread their wings in the whole world with the use of internet.

The services of Online Information and Database Access or Retrieval (OIDAR) are brought under GST with a perspective to make sure that the domestic service providers are not being ruined and are having an equal opportunity in every term.

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GST regulations on OIDAR Services

The OIDAR services have been brought into the taxation under the GST regime as well. For this a return in Form GSTR-5A has been prescribed that is to be filed by the OIDAR service providers who are providing services to unregistered service recipients in India.

There are two categories of service recipients for OIDAR services:

1. Registered person or entity

The taxes on services received by such person/entity are imposed through a reverse charge mechanism (i.e. the recipient of services is liable to pay GST to the government)

The GST as explained is paid by the recipients through the reverse charge mechanism. The returns are to be filed accordingly i.e. the service recipients are to file returns or include these services while filing the returns.

2. An unregistered person, Government, Local authority

When the services are received by such recipients, the service providers are liable to pay GST to the government. The services received in this case should be for a purpose other than business or commerce.

For these service recipients, the GSTR 5A is to be filed.

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What is the last date to file GSTR-5A?

As per the act, non-resident OIDAR service providers have to file Form GSTR 5A monthly. The due date for filing GSTR 5A is within 20th day of the succeeding month.

For example: GSTR 5A for the services provided in the month of November 2018 has to be filed latest by 20th December 2018.

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Who requires to file GSTR 5A?

All the service providers Non- Residents Online Information and Database Access or Retrieval (OIDAR) are required to file Form GSTR 5A. This return is mandatory even for the business who have Nil return in the taxation period.

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Modes of preparing GSTR-5A

GSTR-5A can be furnished by using two major modes. They are as follows:

For Intra State Supply

• Logging in on GST Portal for online entry of data
• Usage of third party application of Application Software Provider (ASPs) through GST Suvidha Providers (GSPs)

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Filing requirements for non-resident OIDAR service providers

There are various regulations that the taxpayers have to adhere by while filing GSTR 5A. They are:

• The return is mandatory to be filed even if there is no business activity for any period under tax. In this case the return will be considered as Nil return.
• The filing of GSTR 5A is mandatory for the non-resident OIDAR service providers.
• There is no provision of Input Tax Credit in GSTR 5A and that is why electronic cash ledger for GSTR 5A is not maintained.
• The return can only be filed after making payment of due taxes and any other amounts that are due.
• Return for current period cannot be filed before filing return for the previous tax period.
• Taxpayer should have a valid GSTIN and should be registered as OIDAR service provider.
• The taxpayer should have User ID and password.
• A valid and non expired PAN based digital signature for filing DSC is mandatory for each taxpayer.

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How to file GSTR 5A?

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Details of GSTR 5A and the procedure to file

The GSTR 5A includes seven tables in which various details are specified. They are as follows:

Table 1: This includes GSTIN of the supplier

Table 2: This contains the Legal Name of the Registered Person & their Trade Name (if any)

Table 3: This table specifies the name of the authorized representative of the Non-Resident OIDAR in India for filing the return

Table 4: This displays period that is month and year for which return is filed

Table 5: This head includes all the taxable outward supplies that are made to consumers in India. This includes various details such as place of supply, the rate of tax, taxable value, integrated tax and cess

Taxable outward supplies made to consumers in India

Table 5A: under this all the amendments made to taxable outward supplies for the non-taxable persons in India for the preceding period is specified

5A – Amendments to taxable outward supplies to non-taxable persons in India

Table 6: Here calculation of interest, penalty or any other amount due is done

Table 7: This section is for tax Interest, Late Fee and any other amount that is payable and paid

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In case taxpayer have paid the liability of GSTR-5A through CBEC Portal

In this case you do not need to go for net banking for making payment of the liability through cash.

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What happens in case of delay in filing GSTR 5A ?

For delay in filing a GSTR-5A return, a penalty of Rs.200 per day can be levied upto Rs.10,000, for each return filed late. During the period of registration, if a nil return is required to be filed during the registration period, then late fees is Rs. 20 per day and maximum upto Rs 10,000 for each return filed late.

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Comparison Between GSTR 5A and GSTR 5

Conclusion

In the world of modernization, the internet has made various provisions for providing services all over the world. This business has taken a great place in India as well. The services are provided by various non-residents in India also. Under the GST regime they have to file GSTR 5A in which all the details of their income and expenses are mentioned.