What is GSTR-10? Understanding Final Return Under GST

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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GST Returns

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

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.

Nitin Bansal

Chartered Accountant

MRN No.: 430412

City: Jaipur

I am a Fellow Chartered Accountant (FCA) and LLB graduate with 10 years of experience in corporate auditing, taxation, and financial consulting. My expertise includes corporate audits, income tax planning, HSN code classification, and GST rate advisory. Through my blogs and articles, I aim to simplify corporate taxation, auditing, and GST compliance, making financial matters more accessible for professionals and business owners.