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    Categories: GST

Filing GSTR 10: Final Return after GST Cancellation

The GST Council vide a notification issued directions for the filing of a final return using Form GSTR 10 by every taxpayer subject to exception whose GST registration has been canceled or surrendered. Filing of return in Form GSTR 10 is mandatory compliance.

For those who are registered under the GST regime, all returns have to be filed within the due time period in order to avoid penal consequences. There are certain taxpayers who are not liable to continue with the GST registration due to one or the other reasons, for all such taxpayers, some essential compliance has been predetermined for completing the registration cancellation procedure with the GST department.

Situations for cancellation of GST registration

As per Section 29 of the Central GST Act, 2017, as read with Rule 20 of Central GST Rules, a taxpayer can apply for cancellation of registration filing Form REG -16 in case:

  • The  assessee wants to discontinue or close down his business permanently;
  • There is a transfer of business on account of amalgamation, merger, de-merger or otherwise ;
  • There is a change in the constitution of business which led to a change in PAN number;
  • The taxable person is no longer taxable under GST and has applied for cancellation.
  • The Death of sole proprietor.
  • Any other reason as the department deems fit for cancellation.

Why file GSTR 10 Final Return?

As per the CGST Act, 2017, Section 45 states that every registered person liable to pay tax under GST rules other than taxpayers notified under:

  • Composition Dealer ;
  • The person deducting tax deducted at source ;
  • The person collecting TCS  ;
  • Input Service Distributor (ISD) ;
  • Non- Resident taxpayer;

Whose registration has been canceled, has to file a final return using Form GSTR 10 within 3 months from the date of cancellation as notified in the  GST cancellation order stated in form GST REG – 19.

Filing GSTR 10 Final Return on GST Portal

Once the GST cancellation order is received, Form GSTR 10, the Final return is to be filed within 3 months of the date notified as stated by the applicant specified in the cancellation order. It can be filed on the GST portal by following the below procedure:

  1. Login to the GST portal (www.gst.gov.in) with the user credentials.
  2. Go to Services > Returns > Final Return. For tax records, more than 500, click on “Prepare Offline” else click on “Prepare Online “.
  3. Enter the registered address or correspondence address under the head “Address for Future Correspondence and click on “Save”.
  4. Where audit of the business is required or any other case prescribed under the cancellation notice, a certificate from any certified Chartered Accountant or Cost Accountant is to be enclosed under the “CA Certificate” head. Once uploaded click on “Save”.
  5. The “Table 8A, 8B, 8C” is to be filled in case some goods have been held in stock or there are some semi-finished goods/finished goods/capital goods or plant or machinery held in stock on which ITC is to be reversed. For adding stock held without invoices, Table 8D is to be filed. After filing of information in both tables, Table 9 & 10 shows the amount of tax payable by the taxpayer if any.
  6. After payment of the prescribed tax liability, a final view of the return can be downloaded by clicking on Preview Draft.
  7. The return is to be filed choosing any of the options “File through DSC” or “File using EVC”.

After filing of the return, intimation on the email and the registered mobile number of the taxpayer will be sent confirming the filing of GSTR 10.

Consequences for Non- filing of Final Return.

  1. For non-filing of Final return within the stipulated time period as prescribed in the cancellation order, a notice in FormGSTR 3A shall be issued to the taxpayer intimating filing of final return within 15 days of the receipt of the notice.
  2. Then an assessment order using form GSTRASMT -13under Section 62 of the CGST Act shall be issued to the taxpayer determining the tax liability.
  3. For non-filing of Form GSTR 10 within 3 months a fine of Rs. 200/per day being Rs 100 for CGST and Rs 100 for SGST/UTGST up to a maximum of Rs 10,000 shall be levied.
  4. If Form GSTR10 is not filed even after the issue of 15-days notice, the proper officer (PO) shall issue a final penalty notice to the taxpayer, requiring penalty amount to be paid with interest as prescribed.

Things to Know

  • The taxpayer for making payment of tax liability in GSTR 10, have to either debit the electronic credit ledger or electronic cash ledger or have to make payment through other payment modes for the input tax held in stock or the output tax payable.
  • For calculation of tax liability, stock held shall be taken up to the date just preceding the date with effect from which cancellation order has been issued.
  • After cancellation, the input held in stock shall not to be used for discharging any liabilities under GST, other than for making payment of the required ITC of tax payable on cancellation.
  • Once Form GSTR10 is filed, it cannot be revised later. Hence, due care shall be taken to file Final Return

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