GST has brought many benefits, like the elimination of the cascading effect of taxes, a wider customer base, the removal of inter-state barriers, etc., for businesses, but there may be situations when they opt to cancel their registrations voluntarily or are asked to surrender their GST registration due to a misdemeanor by the government. In such circumstances, it is mandatory for the taxpayer to file a final return in Form GSTR-10. Filing the final return signifies the completion of the cancellation of registration and a conclusion of their obligations under the GST regime.
Any registered taxable person whose registration has been cancelled or surrendered is required to file GSTR-10 as per Rule 81 of the CGST Rules 2017. It is also called a final return and is a statement of stocks held by the taxpayer on the day immediately preceding the date on which the cancellation is effective. Form GSTR-10 is important because it provides a complete picture of the taxpayer’s tax-related activities before the cancellation of registration. It also helps the tax authorities ensure that there are no liabilities due from the taxpayer at the time of their withdrawal from GST. For the taxpayer filing GSTR-10, it ensures a seamless exit from the GST system and its compliance requirements.
Pre-requisites for filing GSTR-10
The pre-requisites for filing GSTR-10 are as follows:
- The taxpayer must have a valid GSTIN, user ID, and password.
- The taxpayer should have applied for cancellation of registration and order must be issued for the cancellation
- In case of Suo-moto cancellation by the tax authorities, an order must have been issued for cancellation
- The aggregate annual turnover of the taxpayer must be more than Rs 20 lakhs
Eligibility to file GSTR-10
GSTR-10 is required to be filed by every taxpayer who has surrendered or whose registration has been canceled, except the following:
- Input service distributors
- Non-resident taxable persons
- Persons deducting tax at source (TDS) under section 51
- Persons collecting tax at source (TCD) under section 52
Applicability for GSTR-10
- GSTR-10 is a return that has to be filed by registered taxable persons who have opted for cancellation of registration. It is not required to be filed by regular taxpayers
- It is mandatory for taxpayers’ whose registration has been cancelled or surrendered to file GSTR-10 under section 39(1)
- GSTR-10 is basically a statement of stocks held by the taxpayer on the day immediately preceding the date on which the cancellation is effective. The purpose of the statement is to calculate the balance of tax liabilities, including the ITC involved in the closing stock, including inputs and capital goods that are required to be reversed or paid by the taxpayer.
- GSTR-10 can be filed online on the GST portal. It can also be filed in offline mode.
- The due date for filing GSTR-10 is three months from the effective date of cancellation or the date of cancellation order, whichever is later.
- It is mandatory to file all the applicable returns in Form GSTR-3B and statements in Form GSTR-1 before filing Form GSTR-10
- Filing GSTR-10 is applicable to all registered taxpayers except input service distributors, non-resident taxable persons, persons required to deduct TDS and TCS under Sections 51 and 52 respectively, and taxpayers registered under the composite scheme
- The full liabilities, as declared and calculated in GSTR-10, has to be discharged before filing the return
- The final form, GSTR-10, cannot be revised once it is filed.
- If GSTR-10 is not filed by the due date, a notice will be sent by the tax authorities instructing them to file the return with all the details and clear their pending tax obligations within 15 days. If the taxpayer fails to file the return, they will receive a final order for cancellation of registration stating the tax-payable amount along with interest and penalty.
Information required in GSTR-10
The information is required in tables in Form GSTR-10 while filing online in the GST portal. Taxpayers with less than or equal to 500 records per table (mainly in tables 8A, 8B, 8C, and 8D) can use the online facility. Taxpayers with more than 500 records per table must prepare their return by using the offline utility and later upload the file with the required details to the GST portal.
The following information must be provided in the GSTR-10 return:
GSTIN of the taxpayer
The 15-digit GST identification number received after registering under GST This field is auto-populated when the taxpayer logs in with the valid user ID and password. Likewise, the legal name, business name, and address are auto-populated.
ARN of GST registration surrender application
When the application for cancellation has been approved and order passed by the authorities, the ARN is communicated to the taxpayers
Effective Date of GST Registration Surrender/Cancellation (DD/MM/YYYY)
The date of cancellation of registration that is contained in the order sent by the authorities
If a GST cancellation order has been passed,
The taxpayer has to specify whether the return is filed on the basis of cancellation order or whether it is on a voluntary basis
Unique ID of cancellation order
The unique id provided by the authorities at the time of passing the cancellation order
Date of Cancellation Order (DD/MM/YYYY)
The date on which the registration order is passed by the GST authorities
Closing Stock held on date of GST surrender or cancellation
The taxpayer is required to furnish details of the closing stock held at the time of closing of the business. In tables 8A, 8B, and 8C, details of goods with invoices of suppliers registered under GST, CX, or VAT regimes and capital goods on which input tax credit is required to be reversed are listed. In table 8D, the details of goods without invoices of suppliers registered in GST need to be reported.
Inputs in semi-finished goods
The details of semifinished goods held in stock on which input tax credit has to be reversed are required to be reported
Inputs in finished goods
The details of finished goods held in stock on which input tax credit has to be reversed are required to be reported
The details of capital goods held in stock on which input tax credit has to be reversed are required to be reported
The details of input services held in stock on which input tax credit has to be reversed are required to be reported
Amount of tax payable on closing stock
The amount of tax payable on closing stock is computed by the system on the basis of the information provided by the taxpayer, along with late fees and interest, if applicable. This value is auto-populated and cannot be edited.
The summary of the added details is available for the taxpayer to preview and confirm the accuracy of the information entered.
If the taxpayer wants to update the details of the chartered accountant or cost accountant, the following details need to be entered:
- Name of the certifying accounting firm
- Name of the cost accountant in the certifying firm
- Membership number of the certifying firm
- Date of the certificate issued by the certifying firm
The taxpayer has to attach a scanned copy of the certificate provided by the chartered accountant.
While entering details of suppliers registered in the GST regime, the following information is required:
i) GSTIN of the supplier
ii) invoice, bill of entry number
iii) invoice, bill of entry date
iv) details of goods supplied
While entering details of suppliers registered in the CX/VAT regime, the following information is required:
i) CX or VAT registration number of the supplier
ii) invoice, bill of entry number
iii) invoice, bill of entry date
iv) details of goods supplied
Details of goods without invoices have to be reported separately under goods with GSTIN, CX, VAT
A summary of the added details can be previewed, and changes, if any, can be made.
The portal displays the available cash and credit ledger balances, and the taxpayer has to discharge the final liabilities. Only after payment of the dues will the system allow the taxpayer to file the final return, GSTR-10.
The return has to be verified by the taxpayer by either a digital signature certificate (DSC) or an electronic verification certificate (EVC) and complete the process of filing the final return.
GST amnesty scheme for GSTR-10
As per notification No. 08/2023 dated March 31st 2023, the government has waived late fees in excess of five hundred rupees for registered persons who fail to furnish the final return in form GSTR-10 by the due date but furnish the same in the period from April 1st 2023 to June 30th 2023.
GSTR-10 is a crucial return that must be filed by all taxpayers whose registration is cancelled or surrendered. It is a final return and consists of details of the closing stock and the amount of input tax credit that needs to be reversed. Non-filing of the final return can result in penalties and legal action. Therefore, taxpayers need to be well versed in the applicability and eligibility of GSTR-10.
Frequently asked questions
Is the CA certificate compulsory while filing GSTR-10?
Answer: No, the CA certificate is not compulsory while filing GSTR-10. It is required only when the taxpayer does not have the tax invoices of the stocks held at the time of their GST registration cancellation.
How can a taxpayer make payment of the tax liability in GSTR-10?
Answer: The taxpayer can make payment of their tax liability either through the electronic cash ledger or electronic credit ledger or through other payment modes.