GSTR-10

GSTR-10

GSTR-10 is a final return that is filed by a taxpayer whose GST registration has been canceled. The purpose of this return is to provide details about the stock and assets held by the taxpayer at the time of cancellation, as well as to report any tax liabilities or input tax credit (ITC) reversal, if applicable.

Once a taxpayer's GST registration is canceled, they are required to file GSTR-10 within three months from the date of cancellation or the date of the order of cancellation (whichever is later).

Key Features of GSTR-10

• Final Return: This return marks the end of GST compliance for the taxpayer who has had their GST registration canceled.
• Stock Declaration: It requires the taxpayer to declare any closing stock of goods at the time of cancellation of registration.
• Tax Liability: It involves reporting any outstanding GST liability that needs to be paid, or any adjustments required in respect of tax paid on purchases.
• Input Tax Credit (ITC) Reversal: It involves a declaration of any ITC reversal that is required due to the cancellation of registration.

Who Should File GSTR-10?

• Registered Taxpayers with Canceled GST Registration: GSTR-10 is filed only by those taxpayers who have had their GST registration canceled, either voluntarily or by the tax authorities.
• Taxpayers Not Operating under GST: If a taxpayer ceases business operations or is no longer required to comply with GST, they must file GSTR-10.

GSTR-10 Filing Process

The following steps outline the procedure to file GSTR-10:

Log into the GST Portal:

• Visit the official GST portal (www.gst.gov.in) and log in using your GSTIN and credentials.

Navigate to the GSTR-10 Section:

• From the homepage, go to Services > Returns > Final Return (GSTR-10).

Select the Period for GSTR-10:

• Select the period for which you are filing GSTR-10, i.e., the period after your GST registration was canceled.

Fill in the Details:

• Stock Details: Provide details of any stock of goods held by you at the time of cancellation of your GST registration. This may include raw materials, finished goods, etc.
• Assets: If applicable, provide details of capital goods or any assets on which you had claimed input tax credit earlier.
• Liabilities: Declare any liabilities or dues that need to be settled, such as pending GST payments.
• ITC Reversal: Mention any input tax credit reversal due to cancellation. This may include reversal of credits claimed on stock, capital goods, or assets.

Submit GSTR-10:

• After entering all required details and ensuring the accuracy of the information, click on the Submit button.

GST Officer Verification:

• The GST officer will verify the submitted GSTR-10 form. If everything is correct, they will approve the form, and the process will be complete.

GST Registration Cancellation Confirmation:

• Once the GSTR-10 is filed successfully, the taxpayer’s GST registration cancellation will be processed, and the final return will be accepted. The taxpayer will no longer have to file further GST returns.

Contents of GSTR-10

Basic Details:

• GSTIN, business name, and other basic details of the taxpayer.

Stock of Goods:

• The taxpayer must report the stock of goods held on the day the GST registration was canceled. This includes:
  • Goods in stock that were purchased under GST.
  • Goods purchased from non-GST suppliers.
  • Goods purchased on which input tax credit was claimed.

ITC Reversal:

• A report on input tax credit reversal that is applicable on any unsold goods or capital goods that were purchased and on which ITC had been claimed.

Outstanding Liabilities:

• Any liabilities related to GST payments that are due and payable before the cancellation of registration.

Capital Goods:

• If applicable, details of capital goods on which ITC was claimed and the reversal of ITC for such goods.

Payment of Tax:

• The taxpayer must make any necessary payments for the GST liabilities if they are due.

Important Points to Note

• Filing Deadline: GSTR-10 must be filed within three months from the date of GST registration cancellation or the cancellation order date, whichever is later.
• No Penalties: As per GST law, there are no penalties for not filing GSTR-10; however, it is a mandatory requirement to file it to complete the cancellation process.
• ITC Reversal: If the taxpayer has claimed input tax credit on certain goods or services but has not used them in the course of business, they will need to reverse the credit.
• No Further Returns After GSTR-10: After GSTR-10 is filed and the registration is canceled, the taxpayer does not need to file any other GST returns.

Consequences of Not Filing GSTR-10

If a taxpayer fails to file GSTR-10 after the cancellation of their GST registration, they could face penalties or legal issues. The authorities may consider the cancellation process incomplete and may proceed with enforcement actions such as fines or revocation of cancellation, depending on the circumstances.