GSTR 5 - Comprehensive Guide to Filing : GST Return Filing for MSMEs

31 Jul 2023

Introduction to GSTR 5

Welcome to our in-depth guide on GSTR-5 filing, a pivotal aspect of GST compliance for non-resident businesses in India. Since its introduction in July 2017, the Goods and Services Tax (GST) has revolutionized the tax framework, impacting Micro, Small, and Medium Enterprises (MSMEs) significantly. This post demystifies the complexities of GSTR-5, ensuring your business stays compliant and penalty-free.

Who is Required to File GSTR-5?

If you’re a non-resident foreign taxpayer registered under GST, GSTR-5 is your mandatory monthly return. This applies to foreign companies or individuals without a permanent establishment in India but engaging in business transactions here. Each registration under GST necessitates a separate GSTR-5 filing.

Due Dates for Filing GSTR-5

Don’t get caught in a due date scramble! Unlike some GST forms, GSTR-5 has a single, consistent deadline throughout the year. To ensure compliance, remember that GSTR-5 needs to be filed by the 13th of the month following the tax period.

For instance, if you made supplies in April 2024, your GSTR-5 would be due on May 13th, 2024. This applies to every month – May’s supplies are due by June 13th, June’s by July 13th, and so on.

Penalties for Late and Incorrect Filing of GSTR-5

Filing your GSTR-5 accurately and on time is crucial to avoid financial repercussions:

  1. Late Filing Penalties:
    • For the first default: A penalty of ₹100 per day.
    • For the second default: ₹200 per day.
    • For the third and subsequent defaults: ₹500 per day.
    • It’s vital to adhere to the due dates to avoid these escalating penalties.
  2. Penalties for Incorrect or Incomplete Filing:
    • Submitting GSTR-5 with incorrect or incomplete information is a serious offense.
    • A penalty of ₹500 per day is levied for each day the information remains incorrect or incomplete.
    • This underscores the importance of thorough verification and accuracy in your GST filings.

How to File GSTR-5?

  1. Login to GST Portal: Navigate to the official GST website (
  2. Access Returns Dashboard: Under ‘Services’, select ‘Returns’ and choose the appropriate tax period.
  3. Prepare GSTR-5 Online: Complete the form by detailing your outward and inward supplies.
  4. Review and Submit: Ensure all data is accurate before submission. Keep a record of the acknowledgment for future reference.


Adhering to the GSTR-5 guidelines is vital for MSMEs with foreign transactions under the GST regime. Our guide aims to simplify this process, ensuring your business remains compliant and penalty-free. Stay updated with GST norms, leverage the GST portal, and explore additional resources for seamless tax filing.

Stay Connected For more insights and updates on GST compliance.
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