GSTR-10 Final Return Filing - Complete Professional Guide | Credorra

GSTR-10 Final Return

Complete professional guide to GSTR-10 final return filing for businesses whose GST registration has been cancelled or surrendered

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Critical GSTR-10 Filing Information

Important Notice: GSTR-10 must be filed within 3 months from the date of GST registration cancellation or cancellation order, whichever is later[5][8]. Non-filing attracts penalties of ₹200 per day without any maximum limit[15][21].

Understanding GSTR-10 Final Return

GSTR-10 is the final return that must be filed by registered taxpayers whose GST registration has been cancelled or surrendered, ensuring all outstanding tax liabilities are cleared before exiting the GST system[1][2][9].

What is GSTR-10?

GSTR-10 is a one-time final return filed by taxpayers whose GST registration has been cancelled or surrendered, containing details of closing stock and tax liabilities[1][9].

  • One-time final return after GST cancellation
  • Mandatory for all cancelled registrations
  • Details of closing stock and liabilities
  • Input tax credit reversal requirements
  • Tax payment on closing stock
  • Cannot be amended after filing
  • Final settlement of GST account
  • Legal requirement for compliance
  • Essential for proper closure
  • Prevents future legal issues

Who Must File GSTR-10?

All registered taxpayers whose GST registration has been cancelled or surrendered must file GSTR-10, with specific exemptions for certain categories[13][21].

  • Businesses with cancelled GST registration
  • Voluntary registration surrenders
  • Compulsory cancellation by authorities
  • Regular taxpayers and composition dealers
  • Entities closing business operations
  • Transfer of business ownership
  • Change in business structure
  • Businesses below turnover threshold
  • Exempt: Input Service Distributors (ISD)
  • Exempt: Non-resident taxable persons

Due Date & Consequences

GSTR-10 must be filed within 3 months from cancellation date, with severe penalties for non-compliance and ongoing legal obligations[5][8][12].

  • Due within 3 months of cancellation
  • Penalty: ₹200 per day of delay
  • No maximum limit on late fee
  • Continued GST registration if not filed
  • Interest charges on outstanding dues
  • Legal notices from tax authorities
  • Assessment of tax liabilities
  • Potential legal consequences
  • Blocking of future registrations
  • Compliance issues for directors

GSTR-10 Form Structure & Components

Section Description Auto-populated Manual Entry Required
Basic Details (1-4) GSTIN, Legal Name, Business Name, Address Yes Address for correspondence
Application Details (5-9) ARN, Cancellation dates, Order details Partial Effective date, Order references
Closing Stock (10) Details of stock held on cancellation date No Complete stock details with ITC
Inputs as Such (10.1) Raw materials and inputs in stock No Quantity, value, tax details
Semi-finished Goods (10.2) Work-in-progress inventory No Value and applicable tax
Finished Goods (10.3) Completed products ready for sale No Stock value and tax liability
Capital Goods (10.5) Machinery and equipment No Depreciated value and tax
Tax Liability (11) Tax payable and paid details No CGST, SGST, IGST amounts
Verification (12) Digital signature and declaration No Authorized signatory details

Step-by-Step Filing Process

Complete process for filing GSTR-10 through the GST portal with detailed steps for accurate and timely submission[3][6][14].

1

Login to GST Portal

Access www.gst.gov.in with valid credentials and navigate to Services > Returns > Final Return[3][6]

2

Prepare Online

Click on "Prepare Online" under GSTR-10 tile to access the final return preparation page[6][14]

3

Update Address

Enter address for future correspondence and save the details for official communication[14]

4

CA/CMA Details

Provide details of Chartered Accountant or Cost Accountant if required for certification[14]

5

Stock Details Entry

Enter closing stock details in sections 8A, 8B, 8C, and 8D with accurate values and tax calculations[10][14]

6

Preview & Validate

Review all entered information, check calculations, and validate data before submission[6][10]

7

Tax Payment

Pay any outstanding tax liability on closing stock through electronic cash or credit ledger[10]

8

File with DSC/EVC

Complete filing using Digital Signature Certificate or Electronic Verification Code and download ARN[6][10]

Required Information & Documents

Comprehensive list of information and documents needed for accurate GSTR-10 filing and compliance[10][13].

Business Information

  • GST registration cancellation order
  • Application Reference Number (ARN)
  • Effective date of cancellation
  • Date of cancellation order
  • Reason for registration surrender
  • Address for future correspondence
  • Authorized signatory details
  • Digital Signature Certificate

Stock Details

  • Physical stock as on cancellation date
  • Inputs in raw material form
  • Semi-finished goods inventory
  • Finished goods ready for sale
  • Capital goods and machinery
  • HSN codes for all stock items
  • Quantity and unit of measurement
  • Fair market value of stock

Tax Calculations

  • Input tax credit availed on stock
  • ITC reversal calculations
  • Tax rates applicable on stock
  • CGST, SGST, IGST breakup
  • Tax payable on closing stock
  • Interest on delayed filing
  • Outstanding tax liabilities
  • Payment records and challans

Supporting Documents

  • Stock register and inventory records
  • Purchase invoices for stock items
  • Valuation certificate by CA/CMA
  • Bank statements for tax payments
  • Previous GST returns filed
  • Audit reports if applicable
  • Board resolution for cancellation
  • Proof of business closure

Due Dates & Penalty Structure

Event Due Date Late Filing Penalty Maximum Penalty Additional Consequences
GST Registration Cancelled Within 3 months from cancellation date or cancellation order (whichever is later) ₹200 per day (₹100 CGST + ₹100 SGST) No maximum limit Continued active registration
Voluntary Surrender Within 3 months from surrender date ₹200 per day No maximum limit Ongoing compliance obligations
Interest on Tax Due From due date of payment 18% per annum No maximum limit Compounded monthly
Non-filing Notice 15 days after notice Additional penalties As per assessment Legal action and prosecution

Frequently Asked Questions

Comprehensive answers to common questions about GSTR-10 final return filing requirements and process.

What is GSTR-10 and when is it required?
GSTR-10 is a final return required when GST registration is cancelled or surrendered. It must be filed within 3 months from the date of cancellation or cancellation order, whichever is later[1][5]. This return ensures all tax liabilities are cleared before exiting the GST system.
What are the penalties for late filing of GSTR-10?
Late filing of GSTR-10 attracts a penalty of ₹200 per day (₹100 CGST + ₹100 SGST) without any maximum limit[15][21]. Additionally, interest at 18% per annum applies on any outstanding tax liability from the due date.
Can GSTR-10 be amended after filing?
No, GSTR-10 cannot be amended after filing[21]. Therefore, it's crucial to ensure all information is accurate before submission. Any errors discovered later may require approaching GST authorities for correction, subject to their approval.
What happens if I don't file GSTR-10?
Non-filing of GSTR-10 results in the GST registration remaining active, requiring continued compliance including filing other returns and paying taxes[12]. Tax authorities will issue notices, and failure to respond can lead to assessment orders and legal consequences.
Who is exempt from filing GSTR-10?
Businesses that registered under GST but never commenced operations or made any supplies are exempt from filing GSTR-10[12]. This includes entities that obtained registration but surrendered it without conducting any business activities.
What details of closing stock are required in GSTR-10?
GSTR-10 requires complete details of closing stock including inputs, semi-finished goods, finished goods, and capital goods with their quantities, values, HSN codes, and tax implications[10][13]. ITC availed on stock must also be declared for reversal.
How is tax calculated on closing stock in GSTR-10?
Tax on closing stock is calculated at applicable GST rates on the fair market value. For items without invoices, value is determined as per CGST Rule 44(3) and must be certified by a practicing CA or Cost Accountant[5][10].
Is professional help recommended for GSTR-10 filing?
Yes, professional assistance is highly recommended for GSTR-10 filing due to its complexity and finality[10]. CA or tax professionals can ensure accurate stock valuation, proper ITC reversal calculations, and compliance with all requirements to avoid penalties and legal issues.

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