Analysis of Advisory on Reporting of supplies to un-registered dealers in GSTR1/GSTR 5 issued by GST department on 3rd September 2024
Summary: On September 3, 2024, the GST department issued an advisory in light of Notification No. 12/2024 – Central Tax dated 10th July, 2024, which reduces the threshold for reporting invoice-wise details of inter-state taxable outward supplies to unregistered dealers from ₹2.5 lakh to ₹1 lakh. This change, intended to be reflected on the GST portal soon, requires taxpayers to report such supplies in Table 5 of Form GSTR-1 and Table 6 of Form GSTR-5. Until the portal is updated, taxpayers should continue to report invoice-wise details exceeding ₹2.5 lakh in the respective tables. Form GSTR-1 is used by taxpayers to summarize their sales or outward supplies, while Form GSTR-5 is specifically for non-resident taxable persons (NRTPs) who temporarily conduct business in India. NRTPs must register for a temporary period and file GSTR-5, detailing their inward and outward supplies, and settle any tax liabilities, including penalties and interest, before filing.
Vide Notification No. 12/2024 – Central Tax dated 10th July, 2024, the Government has reduced the threshold limit for reporting of invoice wise details of inter-state taxable outward supplies made to unregistered dealers from 2.5 Lakh to 1 Lakh which needs to be reported in Table 5 of Form GSTR-1 and Table 6 of GSTR-5. In accordance with the new legal provisions, this change is currently under development on the portal and would be available to the taxpayers shortly.
Old Limit: 2.5 Lakh
New Limit 1 Lakh
Further, till the time the functionality is made available on portal, it is advised to continue reporting the invoice wise details of taxable outward supplies to unregistered dealers which are more than 2.5 Lakhs in the Table 5 of Form GSTR-1 and Table 6 of GSTR-5.
GSTR 1 is a monthly/quarterly return that summarises all sales (outward supplies) of a taxpayer. You must make sure that a valid GSTIN is filled while entering sales invoice details.
GSTR 5: Non-Resident Taxable Persons (NRTPs) should obtain registration to do business in India. They can get registration from the GST portal for a temporary period of 90 days or less. Further, NRTPs must file the GSTR-5 return reporting on their business.
Features of GSTR-5
- GSTR-5 is a monthly return which is required to be filed by non-resident taxpayers who carry out business transactions in India
- Non-resident taxpayers are those businesses who do not have a fixed place of business in India and carry out their business temporarily for a particular period of time.
- GSTR-5 can to be filed online on the GST portal or through a facilitation center.
- The details of inward and outward supplies are submitted by the non-resident taxpayer in form GSTR-5
- Tax liability including penalty, fees, interest and any other charges must be paid before filing the return.
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