GSTR 5A GST For Non-Resident OIDAR Service Providers
The Goods and Service Tax in India, although has streamlined the process, there have been instances when people find it difficult to grasp many facts about the various forms it encapsulates. A detailed look at the various forms meant for a diverse group of taxpayers has been introduced to make the taxpayers’ job of filing the returns easy.
This article focuses on GSTR 5A, a form for the non-resident OIDAR service providers. OIDAR stands for Online Information and Database Access or Retrieval. We shall be covering the following points in this post:
- What is GSTR 5A?
- Online Information and Database Access or Retrieval (OIDAR)
- GST on OIDAR Services
- Compliance requirements for non-resident OIDAR service providers
- Filing requirements GSTR 5A
- Format of GSTR 5A form
- Late Fees for a delay in filing GSTR 5A
- Frequently Asked Questions
What is GSTR 5A?
The GSTR 5A is a form that NRI service providers and service providers of online database access and retrieval (OIDAR) must file. Every month, regardless of transactions or business deals, this form must be filed.
What is Online Information and Database Access or Retrieval (OIDAR)?
Services that provide access to and retrieval of information stored in databases online without requiring subscribers to physically interact with the suppliers of the data are called OIDAR. Purchasing an e-book online, for example, would constitute OIDAR services when the consumer downloads the book and makes the payment.
In the IGST Act, OIDAR is defined as services that are delivered via an electronic network or the Internet, and whose nature involves little to no human intervention and cannot be maintained without information technology, and includes electronic services such as those described in the following:
- Provide e-books, movies, music, software, and other intangibles via telecommunications networks or the internet
- A digital content supply online. This includes movies, television shows, music, and so on.
- storage of digital data and
- ad campaigns on the internet
- offering cloud services
- In the case of information, retrievable or otherwise, via a computer network, providing it to anyone in electronic form
- Gaming online
GST on OIDAR Services
GST is payable by OIDAR service providers in the indirect tax bracket. OIDAR service providers who provide services to unregistered service recipients should file a GSTR-5A form.
Two types of recipients are classified by the Service:
- Persons not registered with the government, local authorities, or local governments
The service provider must pay GST to the government of India when the users receive such service from them. Such services should not be rendered for the purpose of business or commerce.
- Registered Person/Entity
In such cases, a reverse charge is applied to the taxes owed by the person or entity. In addition, the returns must also be filed accordingly. Users of the service are responsible for filing returns when filing taxes.
In the next section, we shall look closely at the Compliance requirements for non-resident OIDAR service providers.
Filing Requirements GSTR 5A
According to the act, the form GSTR 5A must be filed monthly. It is due by the 20th day of any succeeding month for filing GSTR 5A. For better understanding, GSTR 5A must be filed on or before June 20th, 2018 for services provided during the month of May 2018.
Now, let's learn about the conditions for filing GSTR 5A.
- Even if there is no business activity for any period, the return must be filed.
- It is only possible to file the return once all taxes are due and all other amounts are paid.
- A non-resident is mandatorily required to file a GSTR5A if they provide OIDAR services.
- A return for the current period cannot be filed before a return for the previous period has been filed.
- Because GSTR 5A does not include input tax credits, an electronic cash ledger is not maintained for it.
Format of GSTR 5A form
The GSTR 5A format is shown as follows:
Table 1 | GSTINs of suppliers. |
Table 2 | Registered Person's legal name & trade name (if applicable). |
Table 3 | Names of authorized representatives in India who file the returns. |
Table 4 | Period i.e. the month and year for which the return is filed. |
Table 5 | Information about the taxable Outward supplies in India. This includes the details of the place of supply, the tax rate, the value taxable, and the combined tax and cess. |
Table 5A | Amending or correcting taxable outward supplies made to non-taxable persons in India during the previous period. |
Table 6 | Interest, penalty, or any other amount to be calculated. |
Table 7 | Tax Interest, Late Fees, and Other Amounts Payable. |
After the taxpayer files GSTR 5A successfully, an acknowledgment is automatically generated and emailed to them.
Late Fees for a delay in filing GSTR 5A
The late fees for a delayed filing of GSTR 5A are as follows:
Normal Return: Rs. 200 per day
NIL Return: Rs. 100 per day
Quick Facts about GSTR 5A (FAQs)
Is GSTR 5A required for all OIDAR service providers?
GSTR 5A is only required for service providers who are non-residents and perform services for unregistered persons, governments, or state and local governments.
Is it necessary for these OIDAR service providers to register?
It is mandatory for them to register as with registration they get a GSTIN, without which the filing is not possible.
Can the Taxpayers avail of the ITC from the GSTR 5A?
The GSTR 5A form does not have any provisions for letting the taxpayers avail of ITC.
What are the ways that service providers can use Authorized representatives in India to file returns?
Non- residents can have their authorized representatives file GSTR 5A on their behalf as their agents. The agents may also assist with making tax payments.
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Key Takeaways
Let’s quickly look back at the highlights of the article:
- The GSTR 5A is a form that NRI service providers and service providers of online database access and retrieval (OIDAR) must file.
- Even if there is no transaction or business, the return for the form must be filed every month.
- Services that provide access to and retrieval of information stored in databases online without requiring subscribers to physically interact with the suppliers of the data are called OIDAR.
- Ad campaigns on the internet, offering cloud services, online gaming are some of the examples of OIDAR.
- The late fee for filing normal returns is Rs. 200 and for NIL returns it is Rs. 100 per day.
- It is mandatory for the OIDAR service providers to register as with registration they get a GSTIN, without which the filing is not possible.
- Non- residents can have their authorized representatives file GSTR 5A on their behalf as their agents.