GSTR-10, also known as the Final Return, is a one-time return that a GST-registered taxpayer must file when their GST registration has been cancelled or surrendered. It serves as the conclusive step to finalize all tax liabilities and Input Tax Credit (ITC) matters before officially exiting the GST system.
Who Needs to File GSTR-10?
GSTR-10 is mandatory for all registered persons whose GST registration has been cancelled or surrendered. This includes
- Taxpayers who have voluntarily applied for cancellation of their GST registration.
- Taxpayers whose registration has been cancelled by the GST authorities (suo-moto cancellation) due to non-compliance or other reasons.
Who is NOT required to file GSTR-10?
The following types of registered persons are exempt from filing GSTR-10
- Input Service Distributors (ISD)
- Non-Resident Taxable Persons (NRTP)
- Persons paying tax under the Composition Scheme (though they have other final compliance requirements)
- Persons required to deduct TDS (Tax Deducted at Source) under Section 51.
- Persons required to collect TCS (Tax Collected at Source) under Section 52.
When to File GSTR-10 (Due Date)?
GSTR-10 must be filed within three months from the date of cancellation of GST registration or the date of the cancellation order, whichever is later.
Example:
- If your GST registration was cancelled on April 1, 2025, and you received the cancellation order on April 5, 2025, then the due date for filing GSTR-10 would be July 5, 2025.
Purpose of GSTR-10
Before applying for revocation, the taxpayer must fulfill certain conditions:
Declare Closing Stock
Report details of all stock (inputs, semi-finished goods, finished goods, and capital goods) held on the day immediately preceding the date of cancellation.
Reverse/Pay ITC on Closing Stock
Calculate and pay the Input Tax Credit (ITC) associated with the closing stock. The ITC on inputs and capital goods must be reversed/paid if such goods are no longer used for taxable supplies.
Settle Final Liabilities
Ensure all outstanding tax liabilities (including interest and late fees) up to the effective date of cancellation are settled.
Finalize GST Obligations
It marks the complete closure of the taxpayer’s obligations under GST.
Documents and Information Required for GSTR-10
To accurately file GSTR-10, you should have the following information and documents ready.
GSTIN
(Goods and Services Tax Identification Number).
Effective Date of Cancellation of Registration
As mentioned in your cancellation order.
Reference Number of the Cancellation Order
If applicable (for cancellations initiated by authorities).
Date of Cancellation Order
The date on which the order was issued.
Details of Closing Stock
This is crucial. You need to provide.
Inputs in stock
With corresponding invoices.
Inputs in semi-finished or finished goods
With corresponding invoices.
Capital goods or machinery in stock
With corresponding invoices.
Inputs in stock or in semi-finished/finished goods where invoices are NOT available
These need to be valued at market value as per CGST Rule 44(3) and may require a certificate from a Chartered Accountant or Cost Accountant.
Input Tax Credit (ITC) Details
Any ITC balance in your Electronic Credit Ledger that needs to be reversed or utilized.
Tax Payable and Paid
Details of any tax, interest, and late fees payable and paid for the period up to cancellation.
Last Filed Return Details
Ensure all your regular returns (GSTR-1, GSTR-3B, etc.) up to the effective date of cancellation have been filed.
Bank Statements
For verification of any pending tax payments.
Address for Future Correspondence
An address where future communications from GST authorities can be sent.
Certifying CA/Cost Accountant Details
If a certificate is required for stock valuation.
Step-by-Step GSTR-10 Filing Process
Login to GST Portal
Go to www.gst.gov.in and log in with your GSTIN, username, and password.
Navigate to GSTR-10
Go to “Services” > “Returns” > “Final Return (GSTR-10)”.
Update Address
Update your address for future correspondence.
Enter Details in Sections
Section 5: Effective Date of Cancellation, Reference Number, and Date of Cancellation Order.
- Section 8 (Particulars of Closing Stock): This is where you enter the details of goods and capital goods held as of the cancellation date. This includes ITC reversal details.
- 8A, 8B, 8C: For goods where invoices are available.
- 8D: For goods where invoices are not available.
- Section 9: Amount of tax payable and paid (from Electronic Cash/Credit Ledgers).
- Section 10: Interest, late fee payable and paid.
- Section 11: Verification and Digital Signature/EVC.
- Section 8 (Particulars of Closing Stock): This is where you enter the details of goods and capital goods held as of the cancellation date. This includes ITC reversal details.
Compute Tax Liability
The system will compute the final tax liability based on the details provided. If there’s an outstanding amount (especially ITC to be reversed), you’ll need to pay it using the Electronic Cash Ledger or by generating a challan.
Preview and File
Preview the draft GSTR-10 to ensure all details are correct. Then, proceed to file using your Digital Signature Certificate (DSC) (mandatory for companies/LLPs) or Electronic Verification Code (EVC).
Download Acknowledgment
After successful filing, an Acknowledgement Reference Number (ARN) will be generated. Download the filed return and the acknowledgment for your records.
Consequences of Not Filing GSTR-10
Non-filing or late filing of GSTR-10 can lead to serious consequences:
Late Fee
A late fee of ₹200 per day (₹100 CGST + ₹100 SGST) is levied, subject to a maximum of ₹10,000.
Notice from GST Authorities
If GSTR-10 is not filed by the due date, the GST authorities may issue a notice to the taxpayer, providing 15 days to file the return.
Best Judgement Assessment
If the taxpayer still fails to file the return even after receiving the notice, the tax officer can proceed to conduct a “best judgment assessment.” They will pass a final order for cancellation with the amount of tax payable, along with applicable interest and penalties, based on available information. This can result in a higher tax demand.
Legal Consequences
Failure to comply can lead to further legal actions and recovery proceedings by the tax department.
No Revision
Once GSTR-10 is filed, it cannot be revised. Hence, accuracy is crucial.
GSTR-10 is a critical compliance formality to ensure a clean exit from the GST regime. Taxpayers whose registration is cancelled must ensure they file this final return diligently and on time to avoid unnecessary penalties and legal complications. Get help from our experts for exit GST regime.