Complete Guide to GSTR-10: Final Return Filing, Due Date, Penalties, and Compliance Tips

Learn about GSTR-10, its due date, filing process, benefits, and required details like closing stock. Explore the penalty for non-filing and more.
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3 min
14 April 2025

GSTR-10, also known as the final return, is needed for taxpayers whose GST registration has been cancelled or surrendered. It ensures that all outstanding tax liabilities are settled before leaving the GST system. The return must be filed within 3 months of cancellation, and delays may result in penalties. This guide explains the filing process, important details, penalties, and the differences between GSTR-10 and GSTR-9 to help ensure smooth compliance.

What is GSTR-10?

GSTR-10, also known as the final return, is a one-time document that has to be filed by a registered taxpayer under GST whenever they cancel their GST registration or at the time of closing down a business (either voluntarily or due to a government directive). This filing is required to comply with GST laws and to ensure all tax liabilities are properly settled.

GSTR-10 Due Date: When Should You File?

GSTR-10 must be filed within 3 months from the date of GST registration cancellation or the date of the cancellation order, whichever is later. Failing to meet the deadline can lead to penalties, interest, or legal issues. Filing on time ensures that all GST compliance requirements are completed and helps avoid interest and late fee charges.

Who should file GSTR-10?

GSTR-10 is compulsory for all taxpayers whose GST registration has been cancelled or surrendered, including:

  • Regular taxpayers: Businesses or individuals who choose to cancel their registration
  • Composite taxpayers: Those under the composition scheme who cancel their registration
  • Other registrants: Voluntary registrants who now wish to cancel

Not filing GSTR-10 can result in penalties and legal action.

Filing GSTR-10 is mandatory regardless of the reason for cancellation. Non-filing can lead to penalties and further legal actions. It ensures that all pending tax liabilities and input tax credits are adequately accounted for and settled. This final return helps the GST authorities maintain accurate records and ensures that the taxpayer does not have any outstanding dues, facilitating a smooth exit from the GST regime.

Details to be provided in GSTR-10

The GSTR-10 form consists of 11 sections. Some of these are auto-filled at the time of login, while others require manual input from the taxpayer. Below is a breakdown of the information included:

Auto-populated sections:

  1. The Goods and Services Tax Identification Number of the taxpayer
  2. Legal name as per the GST registration records
  3. Business or trade name
  4. Address for future correspondence (Registered business address)

Sections to be filled manually:

  1. Effective date of surrender or cancellation: Mention the official date from which the GST registration stands cancelled
  2. Reference number of cancellation order: Provide the unique ID issued by the GST authorities in the cancellation order
  3. Date of cancellation order: Enter the date on which the cancellation order was passed by the authorities
  4. Particulars of closing stock: Furnish details of closing stock held at the time of business closure. This includes:
    • Inputs in stock (where invoice is available)
    • Inputs in semi-finished or finished goods (where invoice is available)
    • Capital goods or machinery in stock
    • Inputs in stock or in semi-finished or finished goods (where invoice is not available)
  5. Tax payable and tax paid: Declare the tax payable and tax paid, including ITC reversal, using the electronic cash and credit ledgers under CGST, SGST, IGST, and cess
  6. Interest and late fee: Provide a break-up of interest and late fees payable and paid, category-wise
  7. Verification: Confirm all the details provided in the form. This must be digitally signed using a Digital Signature Certificate (DSC) or Aadhaar-based verification

Important note on stock declaration:

  • If invoices are not available for inputs or goods in stock, their value must be calculated at market price in line with CGST Rule 44(3), certified by a practising chartered accountant or cost accountant.
  • For capital goods or machinery, value must be calculated using the formula: invoice value minus 1/60th of the value for each month (or part of a month) since purchase, considering a useful life of five years.

Format of GSTR-10

The format of GSTR-10 is designed to capture comprehensive details required for the final return under GST:

Part 1 - Basic details:

  • GSTIN
  • Legal name and trade name (if any)
  • Address of principal place of business
  • Date of application for cancellation

Part 2 - Details of closing stock:

  • Inputs in stock
  • Inputs in semi-finished goods
  • Inputs in finished goods
  • Capital goods

Part 3 - Tax payable on closing stock:

  • Tax amount for inputs
  • Tax amount for semi-finished goods
  • Tax amount for finished goods
  • Tax amount for capital goods

Part 4 - Verification:

  • Declaration and signature by the authorised signatory

Step-by-step guide for filing GSTR-10 on the GST portal

To create and file Form GSTR-10 (Final Return), follow these steps:

  • Log in and go to the Form GSTR-10 page
  • Update the address for future correspondence
  • Provide the details of the certifying Chartered Accountant or Cost Accountant
  • Enter the details in the relevant sections:
    • 8A, 8B & 8C – Goods Details with Invoices
    • 8D – Goods Details without Invoices
  • Preview the Form GSTR-10
  • Proceed to file and make the tax payment
  • File Form GSTR-10 using DSC or EVC
  • Download the filed return

Benefits of filing GSTR-10

Filing GSTR-10 offers several advantages for taxpayers whose GST registration has been cancelled or surrendered. Some of the benefits are listed below:

  • Compliance: GSTR-10 is a mandatory requirement under GST law. Failure to file it on time can lead to late fees and legal consequences.
  • Avoiding interest and penalties: Filing GSTR-10 within the due date helps taxpayers avoid interest and penalties. A delay in filing can result in a penalty of ₹100 per day or up to 0.25% of the turnover.
  • Closure of registration: Submitting GSTR-10 ensures the proper closure of the GST registration, settling any outstanding liabilities before the cancellation or surrender.
  • Input Tax Credit (ITC): It allows taxpayers to claim any unclaimed or unreversed input tax credit. Claiming the credit is mandatory before filing GSTR-10.
  • Compliance rating: Timely filing of GSTR-10 helps maintain a positive compliance rating, which is important for the long-term credibility and operational success of the business.

What is the penalty for not filing GSTR 10?

Failing to file GSTR-10 can result in significant penalties. The GST authorities impose a late fee of Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST) until the return is filed, with a maximum cap of Rs. 5,000. Moreover, if the return is not filed even after the due date, the GST officer may issue a notice to the defaulter.

If the defaulter fails to respond to the notice, further legal action can be initiated, including the assessment of the tax liability based on available records. Additionally, the GST calculator used by businesses for tax planning and financial forecasting might show discrepancies, leading to further complications.

Therefore, timely filing of GSTR-10 is crucial to avoid these penalties and ensure compliance with GST regulations. Using tools like a GST calculator can help businesses keep track of their tax liabilities and ensure timely filing.

Difference between annual return and final return GSTR-10

GSTR-9 and GSTR-10 are two distinct returns under the GST system, each serving different purposes for taxpayers.

GSTR-9

This is an annual return filed by regular taxpayers to provide a comprehensive overview of the entire financial year’s transactions and tax payments. It helps the tax authorities understand the details of a taxpayer's GST activities throughout the year.

  • Filed once a year by regular taxpayers
  • Reports details of outward and inward supplies
  • Includes information on input tax credit and taxes paid
  • Provides a summary of the taxpayer’s annual GST activities

GSTR-10

On the other hand, GSTR-10 is filed by taxpayers who are undergoing the cancellation of their GST registration. This return ensures the closure of the taxpayer’s GST obligations and facilitates the recovery of any outstanding liabilities before the cancellation becomes effective.

  • Filed when GST registration is being cancelled
  • Ensures closure of all tax obligations and recovery of liabilities (GSTR-10 includes details such as the effective date of cancellation, closing stock, tax payable and paid, interest and late fees, and verification)

Conclusion

Understanding the requirements and procedures for filing GSTR-10 is crucial for businesses undergoing GST registration cancellation, as timely filing ensures compliance and avoids legal complications. Tools like a GST calculator can help with accurate tax calculations, while businesses looking for financial flexibility can consider options such as the Bajaj Finserv Business Loan, which offers instant disbursement, a simplified application process, high loan amounts up to Rs. 80 lakh, all this with no collateral requirements, making it ideal for businesses aiming to grow and manage their finances efficiently.

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Frequently asked questions

Is GSTR-10 mandatory?
Yes, GSTR-10 is mandatory for taxpayers whose GST registration has been cancelled or surrendered. It is a final return that must be filed within three months of the cancellation date or the cancellation order date, whichever is later. Non-compliance may result in penalties and legal consequences.
What is the turnover limit for filing GSTR 10?
There is no specific turnover limit for filing GSTR-10. GSTR-10, also known as the Final Return, must be filed by every taxpayer who has cancelled their GST registration. This return must be filed within three months from the date of cancellation or the date of the cancellation order, whichever is later.
What is the penalty for GSTR-10?

The penalty for failing to file GSTR-10, the final return, includes a late fee of Rs. 200 per day, with Rs. 100 under CGST and Rs. 100 under SGST, up to a maximum of Rs. 10,000. Additionally, interest may be charged on any outstanding tax liability. Timely filing is crucial to avoid these penalties.

Can I revise GSTR-10 after filing it?
No, once GSTR-10 (Final Return) is filed, it cannot be revised. Therefore, it is crucial to ensure all details are accurate before submission. In case of any errors, you may need to contact your jurisdictional GST officer for assistance in rectifying the mistake.
Is it mandatory to file nil in GSTR-10?

Yes, it is mandatory to file GSTR-10 when your GST registration is either cancelled or surrendered. This final return is required by law to ensure that all tax obligations are settled before the cancellation of the registration. Filing GSTR-10 helps you report any outstanding liabilities, such as taxes payable, input tax credits, and any reversals that need to be made. Failing to file this return on time may result in penalties, legal consequences, and delays in the closure of your GST registration.

What is ITC reversal in GSTR-10?

ITC reversal in GSTR-10 refers to the process where a taxpayer is required to reverse any input tax credit (ITC) that is no longer eligible following the cancellation of their GST registration. This includes reversing ITC on closing stock as well as any ITC that was claimed but not fully utilized before the cancellation. The reversal ensures that the taxpayer's records accurately reflect the GST liabilities and avoids any non-compliance issues after the registration is cancelled.

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