GSTR 10 - Final GST Return for Registered Taxpayers in India

GSTR 10 is a final GST return for every registered taxpayer. This applies to businesses whose GST registration has been cancelled or surrendered. It can be considered as an important step for businesses cancelling their GST registration. You must fulfil all the specific requirements to file this GST return. You can file this return through the official GST portal. This helps businesses to stay compliant and avoid heavy late fees. In this piece of writing, you will get guidance on GSTR 10.

What is GSTR 10?

GSTR 10 refers to a one-time final return for the registered taxable persons. It is applicable when they choose to cancel their GST registration. The return focuses on settling all outstanding tax liabilities. It also show details of the ending stock for which the taxpayer has claimed Input Tax Credit (ITC). The ending stock can include inputs and capital goods. So, a taxpayer whose GST registration has been cancelled must file this return. They must file it within three months after cancellation or the date of cancellation.

Key Features of GSTR 10

Listed below are the key features of GSTR 10:

a) The GST return is compulsory for businesses whose registration is cancelled or surrendered

b) It is a one-time return, compared to other periodic GST returns.

c) The return should be filed within three months from the cancellation date

d) A taxpayer must discharge tax payable on ITC reversal related to closing stock and capital goods.

What is the Due date of GSTR 10?

A GST registered taxpayer has to file this return within three months from the date of cancellation. It is also applicable from the date of the cancellation order, whichever is later. For example- In case of the GST cancellation date is 1st January 2025 and the taxpayer has get the cancellation order on 5th January 2025. So, the business should file this return by 5th April 2025.

Who needs to file GSTR-10?

GSTR 10 must be file only by the people whose GST registration has been cancelled or surrendered. Listed below are the entities who do not need to file it:

a) Input Service Distributors (ISD)

b) Composition scheme taxpayers

c) Non-Resident Taxable Person (NRTP)

d) Persons required to deduct TDS under Section 51 of the CGST Act

e) Persons required to collect TCS at source under Section 52 of the CGST Act

Thus, the above mentioned persons are exempt from filing this return.

Details Must be Provided in GSTR 10

There are a total of 11 sections in GSTR 10. The system auto-populates these key sections when you log in. Here are the details:

1. GSTIN (Goods and Services Tax Identification Number)

2. Legal Name

3. Business or Trade Name

4. Address for any future correspondence

Here are the sections that requires manual information:

5. Effective Date of Surrender/Cancellation

You must mention the date of cancellation of GST registration. The official order states it.

6. Reference number of Cancellation order

This means a unique ID that the authorities will give at the time of passing cancellation order.

7. Date of Cancellation Order

This means the date on which the authorities passed the GST registration cancellation order.

8. Particulars of Closing Stock

The taxpayer must furnish details of closing stock held at the time business ceases. You need to pay any unused input tax credit with this return. It includes:

  a) 8(a) Inputs in stock (invoice present)

  b) 8(b) Inputs in the stock of semi-finished or finished goods (invoice present)

  c) 8(c) Capital goods or machinery in stock

  d) 8(d) Inputs in stock where invoices are not available

9. Tax payable amount and tax paid

You must provide ITC reversal or tax payable along with paid. You must also give transfer from electronic cash and credit ledgers as per the heads. The heads can include CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), IGST (Integrated Goods and Services Tax), and Cess.

10. Interest, late fee payable and paid

Failure to file GSTR-10 may result in a notice and best-judgment assessment, along with interest and recovery proceedings.

11. Verification

A taxpayer needs to verify and confirm the correctness of the particulars of the GSTR 10.

Once a taxpayer filling out the details correctly, they must sign online using a digital signature certificate (DSC). They can also sign it through Aadhaar based signature verification to confirm the return.

How to File GSTR 10?

Here is the step-by-step process to file GSTR 10:

Step 1: Log in

You must log in to the official GST portal using your credentials to access it.

Step 2: Navigate to Returns Dashboard

You should go to the "Services" tab. Then, you need to select the "Returns" option and then the "Final Return" option.

Step 3: Prepare Online

In this step, you need to click on the "Prepare Online" option under the GSTR 10 tile.

Step 4: Fill in Details:

You should enter details in tables 8A, 8B, 8C, and 8D as applicable.

Step 5: Table 8A

Enter details of inputs held in stock (with invoices) as on the effective date of cancellation.

Step 6: Table 8B

Enter details of capital goods/plant & machinery held in stock (with invoices) as on the effective date of cancellation, on which ITC has been claimed. (ITC reversal is auto-computed based on all Table 8 entries.)

Step 7: Table 8C

You need to provide the details of ITC (Input Tax Credit) to be reversed.

Step 8: Table 8D

Enter details of inputs, semi-finished, or finished goods held in stock (without invoices) as on the effective date of cancellation. (Tax payable and paid details are in subsequent tables, e.g., Table 9 & 10.)

Step 9: Preview and Submit

Next, you need to review the entered details. Then, you must do the necessary corrections, and click on the "Submit" button.

Step 10: File containing the DSC/EVC

In the final step, you must sign the return with your Digital Signature Certificate (DSC. You can also sign it with an Electronic Verification Code (EVC).

Important points while filing up the details of Stock

If the invoices are missing for the declared stock of materials and items, including semi-finished goods, then the alternative estimation methods will be applicable. The amount should be calculated through different means in such cases. It should be in compliance with CGST rule 44 (3) at market value. These details must be uploaded with GSTR 10.

In case of declaring the value of capital goods or machinery, a formula is applicable. It should be invoice value (minus) value of 1/60th per month or part thereof. The date is calculated by adding a five-year "useful life" period to the invoice or purchase date.

Penalty for not Filing GSTR 10

In case the GSTR 10 is not filed within the due date, you will get a notice. Then, you will get 15 days' time for filing the return with all the documents required. If you fail to file it, the tax officer will pass the final order for the cancellation. You will also get the amount of tax payable and the interest or penalty.

Conclusion

GSTR 10 is an essential return for registered taxpayers whose GST registration is cancelled or surrendered. In other words, it is an important step for businesses that have cancelled their GST registration. You must file this return within three months from the date of cancellation or surrender. The return cannot be revised after filing. It is also important to pay any outstanding tax liabilities. So, you as a taxpayer must file this return on time to avoid penalties. If you have any kind of queries about it, get help from Online Legal India.

FAQ

Q1. What is the GSTR 10?

GSTR 10 refers to a final return for registered taxpayer in India. They must file it when their registered taxpayer. In other words, it is a one-time statement. It has the details of all outstanding liabilities and input tax credit (ITC) on the closing stock at the effective date of cancellation.

Q2. Can I file GSTR 10 mandatorily?

Filing GSTR-10 is mandatory once GST registration is cancelled or surrendered.

Q3. Can I file the nil GSTR 10 return?

Yes, you can file a nil GSTR 10 return. It is applicable when you do not have any Input Tax Credit (ITC) in stocks, semi-finished goods, finished goods, capital goods or plant and machinery.

Q4. Can I revise GSTR 10 after filing it?

No, you cannot revise GSTR 10 after filing it.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.