GSTR-10 Final Return Under GST: Due Date, Liability Calculation, and Filing Process
- GSTR-10 is a one-time final return for eligible taxpayers whose GST registration has been cancelled.
- It is due within three months from the effective cancellation date or cancellation-order date, whichever is later.
- It reports the closing stock and related liability as of the day before cancellation becomes effective.
This guide is for accountants, Chartered Accountants, and finance teams handling the final compliance of a cancelled GST registration. It focuses on the records, calculations, and portal checks that should be completed before filing.
What Is GSTR-10?
GSTR-10 is the one-time final return prescribed under Section 45 of the CGST Act and Rule 81 of the CGST Rules. Unlike GSTR-1 and GSTR-3B, it is not linked to a monthly or quarterly tax period.
It is filed once and reports the closing stock, related ITC or tax liability, and any interest or late fee payable.
The stock position must be determined as of the day immediately before cancellation becomes effective.
Note: The cancellation order determines when the registration ends. Filing GSTR-10 fulfills the remaining final-return obligation.
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Who Must File the Final Return?
GSTR-10 generally applies to a person who was required to file returns under Section 39(1) and whose GST registration has been cancelled . This includes voluntary cancellation and cancellation initiated by the proper officer, such as after closure, transfer, or discontinuation of the business, or when the taxpayer is no longer liable for registration.
The reason for cancellation does not remove the filing requirement unless the taxpayer belongs to an excluded category.
Who Is Not Required to File It?
GSTR-10 is not required from:
- Input Service Distributors
- non-resident taxable persons
- persons deducting TDS under Section 51
- composition taxpayers under Section 10
- persons collecting TCS under Section 52
- OIDAR service providers covered by the relevant IGST provisions
These taxpayers may have separate return obligations, but those returns are not alternatives to GSTR-10. A taxpayer moving from the regular scheme to the composition scheme also does not file GSTR-10 because the GST registration continues.
GSTR-10 Due Date
GSTR-10 must be filed within three months from the effective date of cancellation or the date of the cancellation order, whichever is later.
Due-Date Example:
Suppose a cancellation order is issued on 20 July 2026, but the registration is cancelled with effect from 30 June 2026. The later date is 20 July 2026, so GSTR-10 will be due by 20 October 2026.
Always verify both dates in the cancellation order. Using only the effective cancellation date can result in an incorrect internal deadline.
Note: The three-year filing restriction does not apply to GSTR-10 because the final return under Section 45 is not included among the specified returns and statements covered under Sections 37, 39, 44, and 52.
Information Reported in GSTR-10
Registration and Cancellation Details
| Section | Information |
|---|---|
| 1 | GSTIN |
| 2 | Legal name |
| 3 | Trade name, if any |
| 4 | Address for future correspondence |
| 5 | Effective date of cancellation |
| 6 | Reference number of the cancellation order |
| 7 | Date of the cancellation order |
Section
Information
Section
Information
Section
Information
Section
Information
Section
Information
Section
Information
Section
Information
Sections 1 to 4 are generally populated from registration records. Sections 5 to 7 should be checked against the cancellation order.
Closing Stock and Liability Details
| Subsection | Stock Category |
|---|---|
| 8(a) | Inputs held in stock where invoices are available |
| 8(b) | Inputs contained in semi-finished or finished goods, where invoices are available |
| 8(c) | Capital goods and plant and machinery |
| 8(d) | Inputs and inputs contained in semi-finished or finished goods where invoices are unavailable |
Subsection
Stock Category
Subsection
Stock Category
Subsection
Stock Category
Subsection
Stock Category
Section 9 reports the tax payable and paid. Section 10 covers interest and late fee, while Section 11 contains the authorized signatory’s verification.
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How to Calculate the Stock Liability
Section 29(5) requires the taxpayer to compare the input tax credit attributable to the relevant stock or capital goods, and the output tax payable on those goods. The higher amount is payable. This comparison is important. The liability should not automatically be treated as a 100% reversal of the original ITC.
Inputs Supported by Invoices
For inputs held in stock, calculate the attributable ITC using the purchase invoices on which credit was originally availed.
For inputs contained in semi-finished or finished goods, identify the quantity of embedded inputs and the corresponding invoice-based ITC. Manufacturers should support this calculation with production records, bills of material, consumption records, or another reasonable costing basis.
The output tax payable on the relevant goods must also be calculated. Enter and discharge the higher of the two amounts.
Capital Goods and Plant and Machinery
Two related calculations are required. They should not be combined into a single formula.
1. ITC Attributable to Remaining Useful Life
Rule 44 treats the useful life of capital goods as five years, or 60 months.
Formula:
ITC attributable to remaining life
= ITC originally availed × remaining useful life in months ÷ 60
The illustration under Rule 44 ignores a part of a month while determining the remaining useful life.
2. Reduced Value for Form GSTR-10
The form instructions calculate the remaining value by reducing the invoice value by 1/60 for every month or part of a month from the invoice date.
Formula:
Reduced value
= Invoice value × remaining prescribed life ÷ 60
Output tax is then calculated on that reduced value. The amount payable is the higher of the attributable ITC and the output tax payable.
Worked Example
A machine was purchased on 1 January 2024.
- Invoice value excluding GST: ₹10,00,000
- ITC availed: ₹1,80,000
- Effective cancellation date: 1 July 2026
- Period used: 30 months
- Remaining prescribed life: 30 months
Attributable ITC:
₹1,80,000 × 30 ÷ 60 = ₹90,000
Reduced value:
₹10,00,000 × 30 ÷ 60 = ₹5,00,000
If the applicable GST rate is 18%, output tax on the reduced value is:
₹5,00,000 × 18% = ₹90,000
In this example, both amounts are equal. If they differ, the higher amount must be paid.
Stock Without Purchase Invoices
Where purchase invoices are unavailable, Rule 44 requires the amount to be estimated using the prevailing market price of the goods. The details must be certified by a practising Chartered Accountant or Cost Accountant. The valuation working should include:
- item description, HSN, and quantity
- prevailing market price and supporting evidence
- estimated taxable value
- applicable GST rate
- resulting tax amount
Avoid unsupported or rounded-off valuations, as the basis may need to be explained during verification.
Documents and Checks Before Filing
| Review Area | Confirm Before Filing |
|---|---|
| Returns and cancellation details | All pending returns are filed, both cancellation dates are verified, and the cancellation-order reference is correct. |
| Stock and ITC records | Physical stock matches the books, each item is placed under the correct part of Section 8, and invoice-based ITC is supported by records. |
| Valuation and liability | Capital-goods calculations are complete, market-value evidence and professional certification are available where required, and the final liability working has been reviewed and approved. |
| Payment and filing | Interest and ledger balances are checked, the draft is approved, and the filed return and ARN will be retained. |
Review Area
Confirm Before Filing
Review Area
Confirm Before Filing
Review Area
Confirm Before Filing
Review Area
Confirm Before Filing
How to File GSTR-10 Online
- Log in at www.gst.gov.in
- Go to Services → Returns → Final Return.
- Select Prepare Online.
- Review the auto-populated GSTIN, legal name, trade name, and correspondence address.
- Verify the effective cancellation date, order reference, and order date.
- Enter the stock details under the applicable parts of Section 8.
- Upload the CA or Cost Accountant certificate where invoices are unavailable.
- Preview the draft return and compare it with the approved reconciliation.
- Review the tax, interest, and late-fee liability.
- Use the eligible Electronic Credit Ledger balance against tax liability as permitted by the normal utilisation rules.
- Add sufficient cash where the available balance is inadequate.
- Offset the liability.
- Complete the verification using DSC or EVC, as enabled and applicable.
- Save the generated ARN and filed-return copy.
BUSY accounting software can help businesses reconcile closing stock, purchase invoices, and ITC records before the approved figures are entered on the GST portal.
Note that the return cannot be revised after it is filed. The calculation and stock reconciliation should therefore be reviewed and approved before the authorised signatory completes the filing.
Late Fee and Interest
Late Fee
A late fee applies from the day after the due date until GSTR-10 is filed.
| Component | Daily Late Fee | Maximum Late Fee |
|---|---|---|
| CGST | ₹100 | ₹5,000 |
| SGST or UTGST | ₹100 | ₹5,000 |
| Combined total | ₹200 | ₹10,000 |
Component
Daily Late Fee
Maximum Late Fee
Component
Daily Late Fee
Maximum Late Fee
Component
Daily Late Fee
Maximum Late Fee
These limits apply unless a valid notification provides a waiver or reduction.
Interest
Interest may apply when tax remains unpaid beyond the applicable due date. For delayed tax payment under Section 50(1), the notified rate is generally 18% per year.
Late fee and interest apply for different reasons. Late fee arises from delayed filing, while interest relates to delayed payment of tax.
January 2026 Portal Update
From January 2026, interest on delayed filing of a cancelled taxpayer’s last applicable GSTR-3B is levied and collected through GSTR-10.
Therefore, the amount shown in GSTR-10 may include interest relating to the last GSTR-3B, in addition to the closing-stock liability and late fee. Reconcile the amount with the GSTR-3B due date, filing date and tax-payment records before filing.
What Happens If the Return Is Not Filed?
Notice in FORM GSTR-3A
If GSTR-10 is not filed, the proper officer may issue a notice in FORM GSTR-3A under Section 46 and Rule 68. The taxpayer is generally required to file the return within 15 days of receiving the notice.
Best-Judgment Assessment
If the taxpayer does not comply, the officer may complete a best-judgment assessment under Section 62 and issue an order in FORM GST ASMT-13.
The assessment may be based on information already available to the department, such as filed returns, outward-supply details, e-way bills , ITC records, inspection findings, and third-party data.
Filing After the Assessment Order
If a valid return is filed within 60 days from service of the assessment order, the order is deemed withdrawn. If this period is missed, the return may still be filed within a further 60 days by paying the prescribed additional late fee for the delay beyond the first 60 days. However, the following amounts may still remain payable:
- interest
- late fee under Section 47
- liabilities not resolved through the filed return
If the resulting demand remains unpaid, recovery proceedings may begin. It is therefore better to respond to the GSTR-3A notice before a best-judgment assessment is issued.
Conclusion
Accurate stock, ITC, and liability records are the foundation of a correct GSTR-10. Complete the reconciliation and review before filing, then retain the ARN, filed return, calculations, and supporting certificates for your records.
