GSTR 5A GST For Non-Resident OIDAR Service Providers

GSTR 5A under GST is for Non-Resident Online Information and Database Access or Retrieval (OIDAR) Service Providers. This return is to be filed on the GST portal for the services that are provided from a place out of India to a person residing in India other than a registered person.

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.


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.


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.


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.


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)

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.

How to file GSTR 5A?

Various steps to file GSTR 5A are:

  • Login to the GST Portal
  • Click on Services
  • Click on Returns
  • Click on returns dashboard to file GSTR 5A
GSTR-5A

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)
GSTR-5A
GSTR-5A
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

  • To add details of Taxable outward supplies made to consumers in India, click on Taxable outward supplies made to consumers in India tile and add details to new POS . GSTR-5A
  • Select the Place of Supply, enter the taxable value, select rate and click on add. GSTR-5A
  • Click on the save button. GSTR-5A

Your GSTR-5A will reflect Total Taxable Value and Total Tax Liability.
In the similar way, taxpayer can add details of State wise supplies made to consumers during the tax period.

GSTR-5A
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

  • Add details of any amendment to taxable outward supplies to non-taxable persons in India. GSTR-5A
  • Add details such as financial year, months, place of supply and click on the search button GSTR-5A
  • Enter the taxable value amount, rate, cess and click on the add button. GSTR-5A
  • The amended records will be displayed. One also gets the option to delete any record and then click on the save button. GSTR-5A
  • Amend details if any like financial year, month or place of supply and click on search: GSTR-5A
  • One can edit the details and click on save . GSTR-5A
  • Click on back and 5A – Amendments to taxable outward supplies to non-taxable persons in India will reflect Total Taxable Value and Total Tax Liability. GSTR-5A
  • One can preview the draft for GSTR 5A in PDF format GSTR-5A GSTR-5A Form
  • Click to initiate filing for GSTR-5A.

    Ensure to have sufficient balance in electronic cash ledger to offset the liability of tax and proceed for payment

    GSTR-5A
  • Click the CONFIRM AND SUBMIT button. GSTR-5A
  • Refresh and the status of GSTR-5A changes to Submitted after the submission of GSTR-5A.
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
GSTR-5A
GSTR-5A
  • CHECK LEDGER BALANCE in the Electronic Cash Ledger. GSTR-5A
  • Click the OK button. GSTR-5A
  • Click the OFFSET LIABILITY for payment GSTR-5A GSTR-5A
  • Liability is offset and debit number will be displayed. GSTR-5A
  • Click back and preview the draft in PDF format. GSTR-5A
  • The final step is to generate an acknowledgement on the successful filing of GSTR 5A. After this it is communicated automatically through an email to the taxpayer.
  • One can download the filed GSTR 5A in PDF format. GSTR-5A

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.


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.


Comparison Between GSTR 5A and GSTR 5

BASIS GSTR 5A GSTR5
Who Files ? The GSTR 5A is filed by the Taxable Online Information and Database Access or Retrieval (OIDAR) Service Providers. This return is filed by non resident taxable persons who have no fixed place of business or residence in India and who have come for a short period to make supplies in India.
Purpose GSTR 5A contains details about services supplied to unregistered person, Government, Local authority. GSTR 5 contains details about outward supplies and inward supplies by Non Resident Taxable Person.
Periodicity GSTR 5A is to be filed monthly. GSTR 5 is to be filed monthly during the period of registration of NRTP.
Nil Return Even when there is no business during a month, a nil return is mandatorily required to be filed. A nil return is not required to be filed during a period other than the period of registration.
Last Date The last date of filing GSTR 5A is 20th day of next month. The last date of filing GSTR 5 is the 20th day of next month or 7th day after the last day of the period of registration, whichever is earlier.

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 5 in which all the details of their income and expenses are mentioned.

Frequently Asked Questions (FAQs)

Q- Do OIDAR service providers have to file GSTR 5A?

No, only theNon resident OIDAR service providers who provide services to unregistered persons or government needs to file GSTR 5A.


Q- How can the service providers file their returns easily in India?

The Non-resident OIDAR service providers can file their returns in India through their authorized representatives. These representatives can act as their agent while filing GSTR 5A and can also make payments of the taxes due on their behalf.


Q- Is registration necessary for these non-resident OIDAR service providers?

Yes, the registration is necessary for non-resident OIDAR service providers. With the registration they will get a GSTIN without which they cannot file their GSTR 5.


Q- Do any sort of Input tax credit be availed in Form GSTR 5A?

No, there is no regulation of availing input tax credit in GSTR 5A.


Q- Can I file GSTR-5A after making part payment of taxes?

No, GSTR-5A return cannot be filed after making part payment of taxes. It can only be filed after making full payment of taxes for the relevant period.


Q- Can I file GSTR-5A for current period if no GST return has been filed for previous years?

No, GSTR-5A can only be filed if return has been filed for the previous year.


Q- I am an OIDAR service provider. Can I claim ITC in GSTR-5A?

NO, ITC cannot be claimed in GSTR-5A.

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.