GSTR 10

While there are various forms for Goods and Service Tax (GST) return filing based on the nature and type of business, GSTR 10 stands out. This form is used when a business or individual plans to cancel the GST registration voluntarily or involuntarily. 

In this article, we will cover GSTR 10 meaning and the GSTR 10 filing process in detail. 

What is GSTR 10?

GSTR 10 is the final return that has to be filed by individuals whose GST registration has been cancelled or surrendered. 

The purpose of GSTR 10 is to provide the tax authorities with complete information on the taxpayer's financial activities and to make sure that liabilities and input tax credits are settled before the cancellation of registration.

However, note that GSTR 10 does not apply to certain categories of taxpayers, including:

• Input service distributors
• Non-resident taxable persons
• Individuals required to deduct tax at source (TDS) under Section 51
• Composition taxpayers under section 10
• Individuals required to collect tax at source (TCS) under Section 52
   

Purpose Of GSTR 10

GSTR 10 is important for several reasons including:

• Closure of Tax Liability: GSTR-10 enables taxpayers to clear any remaining tax liability after the cancellation of their GST registration.
• Fulfilment of Legal Requirement: It fulfils the legal requirement of filing a final return after the cancellation or surrender of the GST registration.
• Disclosure of Closing Stock: Taxpayers are required to disclose the details of the closing stock of inputs, inputs contained in semi-finished or finished goods, and capital goods.
• Reversal of Input Tax Credit (ITC): Taxpayers need to reverse any unutilized ITC and pay any tax liability arising from such reversal as part of the GSTR-10 filing.
• Closure of GST Registration: Once GSTR-10 is filed, the GST registration is considered to be cancelled with no obligations.
   

When To File GSTR 10?

Form GSTR 10 is the Final Return, which must be filed within 3 months from the date of cancellation or surrender of the GST registration. 

Who Is Required To File GSTR 10?

Any taxable individual whose GST registration has been cancelled or surrendered needs to file GSTR 10 as a final settlement of accounts. Also,  taxpayers who choose to cancel their GST registration due to the cessation of business or for any other reason also have to file GSTR 10.

Due Date For Filing GSTR 10

You need to file GSTR 10 within 3 months from the effective date of cancellation or the date of the cancellation order, whichever is later. For example, if the GST registration cancellation date is January 30, 2024, and the cancellation order is received on February 5, 2024, the due date for filing GSTR-10 would be May 5, 2024.

Requirements For GSTR 10 Filing

GSTR 10 has a total of 11 sections which will cover to help you with the GSTR 10 return filing process:

1. GSTIN: The Goods and Services Tax Identification Number.
2. Legal Name: The legal name of the business.
3. Business or Trade Name: The trade name of the business.
4. Address for Future Correspondence: The address for any future correspondence.
5. Effective Date of Surrender/Cancellation: The date of cancellation of GST registration as contained in the order.
6. Reference Number of Cancellation Order: A unique ID provided by the authorities at the time of passing the cancellation order.
7. Date of Cancellation Order: The date on which the GST registration cancellation order is passed by the authorities.
8. Particulars of Closing Stock: Details of closing stock held at the time the business ceases. This includes:

• Inputs in stock (invoice present)
• Inputs in the stock of semi-finished or finished goods (invoice present)
• Capital goods or machinery in stock
• Inputs in stock or in stock of semi-finished or finished goods (invoice not present)

9. Tax Payable Amount and Tax Paid: Details of Input Tax Credit (ITC) reversal or tax payable, and transfer from electronic cash and credit ledgers as per the heads—CGST, SGST, IGST, and Cess.
10. Interest, Late Fee Payable and Paid: Head-wise break up of interest and late fee payable and paid.
11. Verification: Verification and confirmation of the correctness of the particulars of the GSTR-10.
 

How To File GSTR 10 Online?

Let’s have a look at the GSTR 10 filing process. 

Step 1: Log in to the GST Portal

• Visit the GST portal.
• Enter your username and password to log in.

Step 2: Navigate to Final Return

• Go to Services > Returns > Final Return.
• The Final Return page will be displayed.

Step 3: Prepare Online

• Click on the Prepare Online button.
• Update the address for future correspondence and the CA certificate if required.

Step 4: Fill in the Details

• Enter the effective date of surrender/cancellation, reference number of cancellation order, and date of cancellation order.
• Provide details of closing stock, including inputs in stock, inputs in the stock of semi-finished or finished goods, capital goods or machinery in stock, and inputs in stock without invoice.

Step 5: Compute Tax, Interest, and Late Fee

• Click on the Proceed to File button.
• The tax, interest, and late fee are computed automatically.

Step 6: Pay Liabilities

• Click on tables 9 and 10 to pay the tax liabilities.
• If the balance in the cash or credit ledger is less than the amount needed to offset the liabilities, a part payment can be made from the available balance, and a challan can be created for the remaining amount.
• If the balance is sufficient, no additional amount needs to be paid. The credit utilisation values are auto-populated and editable.

Step 7: Verification and Submission

• Verify the details and submit the return.
• The return must be signed digitally through a digital signature certificate (DSC) or Aadhaar-based signature verification.

Step 8: Download Filed Return

• Click on the Preview Draft GSTR-10 button to view the summary of the filed details.
• Download the filed return in PDF format.

Distinction Between Annual Return And Final Return GSTR-10

While GSTR 9 is an annual return filed by normal taxpayers to provide an overview of the entire financial year's transactions and tax payments, GSTR  10 is the final return specifically for taxpayers undergoing the cancellation of GST registration, ensuring the closure of their tax obligations and the recovery of outstanding liabilities.

GSTR 9 is filed annually, once a year, to report the details of outward and inward supplies, input tax credit, and taxes paid. On the other hand, GSTR 10 includes sections such as the effective date of cancellation, closing stock details, tax payable and paid, interest and late fee, and verification and is filed when cancelling the GST registration. 

Penalty For Delayed Filing Of GSTR 10

If the GSTR-10 is not filed within the due date, a notice will be sent to the registered individual. The individual will be given 15 days to file the return with all the required documents.

If the individual still fails to file the return, the tax officer will pass the final order for the cancellation with the amount of tax payable along with interest or penalty.

The late fee for non-compliance is Rs. 100 per day (Rs. 50 under CGST and Rs. 50 under SGST), subject to a maximum of 0.25% of the turnover of the individual.

Conclusion

GSTR 10 return is important for individuals or businesses that have been given notice for cancellation of GST registration or plan to do so voluntarily. The submission deadline for GSTR 10 is three months from the date of receiving the GST notice or cancelling the registration, whichever falls later. To avoid penalties and legal repercussions, timely filing of GSTR 10 is important.