What is GSTR-10? Understanding Final Return Under GST
Quick Summary
- GSTR10 is a final return filed by taxpayers whose GST registration is cancelled or surrendered.
- It provides details of closing stock, capital goods, and unutilized input tax credit at the time of cancellation.
- Taxpayers must file GSTR10 within 3 months from the cancellation date or order, whichever is later.
- Filing is done online on the GST portal and requires details like GSTIN, stock, and tax payable.
- Late filing incurs a penalty of Rs. 200 per day, capped at Rs. 5,000, plus potential interest on unpaid taxes.
GSTR-10 is a Final Return that needs to be filed by a taxpayer whose GST registration has been cancelled or surrendered. The primary purpose of this form is to provide the government with a consolidated record of input stocks and capital goods held by the taxpayer at the time of registration cancellation.
Unlike GSTR-1 or GSTR-3B , which are periodic returns, GSTR-10 is a one-time return required only upon closure of the business or cancellation of the registration.
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Who Should File GSTR-10?
The following taxpayers must file GSTR-10:
- Any regular taxable person whose GST registration is cancelled either voluntarily or by the authorities
- Taxpayers opting out of the regular GST scheme and not migrating to the Composition Scheme
Exemptions: Composition dealers are not required to file GSTR-10. Instead, they file GSTR-4 or CMP-08.
Purpose of GSTR-10
The objective of filing GSTR-10 is to ensure that the government gets complete information on:
- Closing stock of inputs, semi-finished goods, finished goods, and capital goods
- Any input tax credit (ITC) remaining unutilized at the time of cancellation
- Liabilities to be settled before exiting the GST system
It helps the tax authorities assess any remaining tax dues and ensures proper compliance.
Due Date for Filing GSTR-10
The due date for filing GSTR-10 is:
- Within 3 months from the date of cancellation or the date of cancellation order, whichever is later.
If your registration was cancelled on 15th June 2024 and the cancellation order was issued on 30th June 2024, then your GSTR-10 must be filed by 30th September 2024.
Details Required in GSTR-10
- GSTIN, legal and trade name
- ARN of the cancellation application
- Effective date of cancellation
- Closing stock details (including HSN codes)
- Input tax credit on inputs and capital goods held
- Tax payable and tax paid details
- Verification and declaration
GSTR-10 Filing Procedure
Filing GSTR-10 is an online process done through the GST portal (www.gst.gov.in):
- Login to your GST account
- Navigate to Services > Returns > Final Return (GSTR-10)
- Fill in the required fields such as the effective date of cancellation, ARN, stock details, and ITC
- Pay any pending liabilities if applicable
- Submit the return using Digital Signature Certificate (DSC) or EVC
Once submitted, an Acknowledgment Reference Number (ARN) is generated for tracking purposes.
Penalties for Late Filing
Failing to file GSTR-10 on time can lead to penalties:
- A late fee of Rs. 100 per day under CGST and SGST (total Rs. 200/day)
- Maximum penalty capped at Rs. 5,000
- Additional interest may apply on unpaid tax liabilities
- In some cases, the cancellation process is not considered complete until GSTR-10 is filed.
Difference Between GSTR-10 and Final GSTR-3B
| Aspect | GSTR-10 | GSTR-3B (Final Monthly Return) |
|---|---|---|
| Purpose | Final stock & ITC declaration | Monthly summary of outward/inward tax |
| Filing Frequency | One-time | Monthly or quarterly |
| Trigger | GST registration cancellation | Ongoing tax liability |
| Applicability | On closure of business | During active registration |
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Conclusion
Filing GSTR-10 is a crucial compliance step for any business exiting the GST framework. It ensures closure of all outstanding tax matters and prevents future complications. Timely filing not only avoids penalties but also demonstrates responsible tax conduct.
Businesses planning to discontinue operations must proactively complete GSTR-10 filing to stay compliant with GST rules and close their registration in a smooth and legal manner.
