GSTR-10: An Overview

What is GSTR-10?

A taxable person whose GST registration is cancelled or surrendered has to file a return in the form GSTR-10. This return is called a final return.

When is GSTR 10 due?

GSTR 10 must be filed within three months from the date of cancellation or date of cancellation order whichever is later. For instance, if the date of cancellation is 1st April 2022 whereas the cancellation order was received on 13th April 2022, then the GSTR 10 must be filed by 13th July 2022.

Who should file GSTR-10?  
 

GSTR 10 is required to be filed only by the persons whose registration under GST has been cancelled or surrendered. Regular persons registered under GST are not required to file this return. 

In other words, the following persons are not required to file GSTR-10:

Input Service Distributors     
Composition taxable persons     
Non-resident taxable person     
Persons required to deduct TDS under Section 51 of the CGST Act     
Persons required to collect TCS at source under Section 52 of the CGST Act     
What is the difference between a Final Return and an Annual Return?     
Annual return has to be filed by every registered person paying tax as a normal taxpayer under GST. Annual return is to be filed once a year in Form GSTR 9. Whereas a Final return is required to be filed by the persons whose registration has been cancelled or surrendered in Form GSTR 10.

What is the penalty for not filing GSTR 10 on time?  
 

If the GSTR 10 is not filed within the due date, a notice will be sent to such a registered person. The person will be given 15 days' time for filing the return with all the documents required. If the person 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.

Details to be provided in GSTR-10

GSTR 10 has a total of 11 sections. Following are the sections which will be auto-populated at the time of system login:

1. GSTIN  

2. Legal Name  

3. Business or Trade Name  

4. Address for any future correspondence

Below are the sections under which information needs to be furnished:

5. Effective Date of Surrender/Cancellation: Here you need to mention the date of cancellation of GST registration as contained in the order.  

6. Reference number of Cancellation order: Unique ID will be provided by the authorities at the time of passing cancellation order.   

7. Date of Cancellation Order: This will be the date on which the GST registration cancellation order is passed by the authorities.   

8. Particulars of Closing Stock: The taxpayer needs to furnish details of closing stock held at the time business ceases. Any amount of input tax credit lying in such stock needs to be paid along with this return.  

8(a) Inputs in stock (invoice present)  
8(b) Inputs in the stock of semi-finished or finished goods  
(invoice present)  
8(c) Capital goods or machinery in stock  
8(d) Inputs in stock or stock of semi-finished or finished goods (invoice not present)  
 

9. Tax payable amount and tax paid: Give ITC reversal or tax payable as well as paid and transfer from electronic cash and credit ledgers as per the heads- CGST, SGST, IGST and Cess details.  
 

10. Interest, late fee payable and paid: Give a head-wise break up of the interest and late fee payable and paid.  
 

11. Verification: Verify and confirm the correctness of the particulars of the GSTR-10.

Once all the particulars are furnished correctly, the taxpayer is required to sign digitally either through a digital signature certificate (DSC) or Aadhaar-based signature verification to authenticate the return.

Points to note while filling up the details of stock:

Where invoices are not present for the declared stock of inputs and inputs contained in semi-finished or finished goods, then the amount must be estimated differently. It will comply with CGST Rule 44(3) at market value. It must be certified by a practising chartered accountant or cost accountant and uploaded along with GSTR-10.  

For declaring the value of capital goods or machinery, a formula is prescribed. It shall be invoice value (minus) value of 1/60th per month or part thereof. This is calculated from the invoice or purchase date by taking useful life of five years.