GSTR-10 (Final Return) Filing under GST

GSTR-10, commonly known as the Final Return under GST, is required to be filed when a taxpayer’s GST registration is cancelled or surrendered. This return includes details of closing stock, tax liabilities, and input tax credit (ITC) at the time of cancellation. Filing GSTR-10 is mandatory for taxpayers whose GST registration has been cancelled or surrendered. Whether initiated voluntarily or by the tax authorities, this document formalizes the conclusion of a taxpayer’s GST obligations. It enables businesses to settle their final tax liabilities and ensure a seamless exit from the GST system, without incurring future liabilities or penalties.

Filing GSTR-10 is essential to ensure proper closure of GST registration and compliance with applicable provisions of the GST law. It helps in avoiding future notices, penalties, or legal complications arising from non-compliance.

What is GSTR-10?

GSTR-10 is a final GST return to be filed by taxpayers whose registration has been cancelled, whether voluntarily or by the tax authorities. It provides details of stock held, tax payable on such stock, and any pending liabilities at the time of cancellation.

This return ensures that all GST obligations are properly concluded before exiting the GST system..

Key Features of GSTR-10

• It must be filed within three months (90 days) of the effective date of cancellation or surrender of GST registration.
• It applies to all taxpayers whose registration has been voluntarily cancelled or cancelled by the authorities, barring specific exceptions.
• It contains details like tax liabilities, stock held, ITC claimed, and the reason for deregistration.

Filing GSTR-10 ensures that businesses provide tax authorities with a complete declaration of their status, helping close the GST registration seamlessly and avoid future disputes or penalties.

Who Needs to File GSTR-10?

GSTR-10 must be filed by:

1. Taxpayers who have voluntarily applied for cancellation of their GST registration.
2. Taxpayers whose GST registration has been cancelled by tax authorities.
3. Taxpayers who have not conducted any business during the period between cancellation and the date of filing but are still registered under GST.

It is important to note that GSTR-10 is mandatory even for businesses with no pending tax liabilities or unused Input Tax Credit. Businesses that fail to comply risk penalties, interest charges, or legal consequences.

Documents Required to File GSTR-10

Filing GSTR-10 requires specific details to ensure accurate and compliant submission under the GST law.

Basic Details

• Name of the tax payer, address, and GSTIN (Goods and Services Tax Identification Number).

Details of Input Tax Credit (ITC)

• Details of ITC on stock (inputs, semi-finished, and finished goods) as on the date of cancellation

ARN of GST Cancellation Application

• Application Reference Number generated upon submitting the GST cancellation request on the GST Portal.

Effective Date of Cancellation

• The date from which GST registration is considered cancelled or surrendered.

Unique Cancellation Order ID

• Order number and relevant details issued by the tax authority

Stock Details

• Details of inputs, semi-finished goods, and finished goods held as of the date of GST cancellation

• Details of tax payable on such stock

Outstanding GST Liabilities

• Disclosure of any pending GST liabilities, including interest and penalties, if applicable.

GST Payment Challans

• Proof of GST payments made against pending liabilities, if any.

Bank Account Details

• Valid bank account details for processing any eligible refund, if applicable

Other Supporting Documents

• Any additional documents as requested by tax authorities.

Time Frame for Filing GSTR-10

Taxpayers must file GSTR-10 within three months (90 days) from the date of GST registration cancellation or surrender of the GST registration. Delayed filings attract late fees and penalties, which can accumulate rapidly.

Late Fees for Filing GSTR-10

Failure to file GSTR-10 within the prescribed time may result in the levy of late fees under GST law.

Fee Breakdown

• Rs. 100 per day (CGST)
• Rs. 100 per day (SGST)

The total late fee is subject to a maximum of 0.25% of the taxpayer’s turnover. Timely compliance is important to avoid additional financial burdens and maintain a favourable compliance record.

Benefits of Filing GSTR-10

Filing GSTR-10 offers several advantages to taxpayers, ensuring that they comply with GST laws and maintain financial discipline:

Legal Compliance

• Filing GSTR-10 fulfills legal requirements and prevents penalties, interest charges, or compliance-related issues.

Avoids Penalties

• Timely filing helps avoid late fees and additional liabilities

Final Settlement

• Enables settlement of pending tax liabilities and proper closure of GST registration.

ITC Adjustment

• Ensures proper reporting and adjustment of Input Tax Credit (ITC), if applicable

Enhanced Compliance Rating

• Timely filing contributes to a favorable compliance rating, which is essential for maintaining good standing with tax authorities.

 Why Consider Professional Assistance for GSTR-10 Filing?

Filing GSTR-10 involves proper reporting of stock, tax liabilities, and compliance with GST provisions. Professional assistance may help ensure accurate filing and adherence to applicable legal requirements.

Convenience

• Assistance in organizing required details and documents for GSTR-10 filing.

Accuracy

• Proper verification of information to reduce errors and ensure compliance with GST provisions.

Timely Filing

• Support in completing the filing process within prescribed timelines to avoid late fees.

Guidance on Compliance

• Clarification on applicable provisions relating to GST cancellation and final return filing.

Compliance Support

• Assistance in maintaining proper records and addressing procedural requirements under the GST law.

Taxpayers may seek professional guidance for understanding compliance requirements and procedural aspects related to GST return filing.