GSTR-10 Return Filing

Every registered taxpayer is required to file GST returns depending upon their type of registration, turnover, and other criteria. GSTR-10 is one such document used by businesses to file their final GST return. It is used to declare the closure or cancellation of registration of a GSTIN. This document helps inform the tax authorities about the cancellation of registration of the GSTIN and the deregistration of the taxpayer.

GSTR-10 must be filed by all taxpayers who have applied for GST registration but have not been granted the same. All registered taxpayers must also file GSTR-10 if they have cancelled their registration or have been cancelled by the tax authorities.

GSTR-10 is an essential document for businesses as it helps them to declare the closure or cancellation of registration of GSTIN. It is also important for the tax authorities to keep track of the taxpayers who have cancelled or deregistered their GSTIN.

What is GSTR 10?

GSTR-10 is a return required to be filed by taxpayers who have surrendered or cancelled their GST registration. It is also known as the Final Return. GSTR-10 needs to be filed within three months from the date of cancellation or surrender of GST registration.

GSTR-10 is a one-page document that contains the following details:

• GSTIN of the taxpayer
• Date of cancellation or date of registration
• Reason for cancellation or deregistration
• Signature and name of the authorized signatory
• Contact details of the authorized signatory

Who needs to file GSTR 10 return?

Every taxpayer who has cancelled or surrendered their GST registration must file GSTR-10. Even if the taxpayer has yet to conduct any business activities during the period between the date of cancellation and the date of filing GSTR-10, they are required to file the GSTR 10 return.

Which documents are required to file GSTR-10?

Filing of GSTR-10 requires the following documents and details to be furnished:

• Basic details: The taxpayer must provide their name, address, and GSTIN (Goods and Services Tax Identification Number).
• Input Tax Credit (ITC) details: The taxpayer must provide details of ITC availed on goods and services that are in their possession on the date of cancellation or surrender of GST registration.
• ARN of GST registration surrender application: The application reference number (ARN) is produced automatically on the official GST Portal upon the submission of the GST Registration Application.
• Effective Date of GST registration surrender/cancellation: The taxpayer must mention the effective date of cancellation or surrender of GST registration.
• Unique ID of cancellation order: When a cancellation order is passed, the authorities will assign the taxpayer with a unique ID.
• Letter of GST registration cancellation: A copy of the GST registration cancellation letter issued by the GST department.
  Details of Inputs, Semi-Finished Goods, and Finished Goods: Details of any inputs, semi-finished goods, and finished goods held by the taxpayer on the date of cancellation of registration.
• Details of tax paid on Inputs, Semi-Finished Goods, and Finished Goods: Details of tax paid on any inputs, semi-finished goods, and finished goods held by the taxpayer on the date of cancellation of registration.
• Details of stock in possession: Details of any stock in possession of the taxpayer on the date of cancellation of registration.
• GST liability: The amount of GST liability on the stock held by the taxpayer on the date of cancellation of registration. The taxpayer is required to mention the details of any outstanding tax liability, if any, that needs to be paid.
• GST payment challans: Copies of GST payment challans, if any, related to the payment of GST liability.
• Bank account details: The taxpayer must provide their bank account details for any refund that needs to be claimed.
• Other supporting documents: The taxpayer must provide any other supporting documents as required by the GST department.

What is the time frame for filing GSTR 10 return?

GSTR-10 must be filed within three months (90 days) of the date of cancellation or deregistration. If it is not filed within this timeframe, the taxpayer may be liable to pay the penalty. It is important to note that this GSTR 10 return cannot be filed if the registration has been cancelled due to the order of the tax authorities. In such cases, the taxpayer must file a different return known as GSTR-11.

What is the GSTR 10 late fees for not filing the form on time?

If the taxpayer fails to file GSTR-10 within the due date, they are liable to pay GSTR 10 late fees of Rs.100 CGST and Rs.100 SGST per day, subject to a maximum of 0.25% of the taxpayer’s turnover.

What advantages come with filing GSTR-10?

GSTR-10 is a return that needs to be filed by a taxpayer whose GST registration has been cancelled or surrendered. Filing GSTR-10 gives taxpayers access to several advantages.

• Compliance: Filing GSTR-10 is a compliance requirement under GST law. Failing to file the return on time can result in paying a GSTR 10 late fees and facing legal consequences.
• Avoid interest and penalties: Filing GSTR-10 within the due date helps avoid interest and penalties. If the return is not filed within the due date, a penalty of Rs.100 per day or maximum up to 0.25% of the turnover will be levied.
• Closure of registration: Filing GSTR-10 helps in the closure of the registration and avoids any future liabilities. It ensures that all the liabilities are settled before the cancellation or surrender of GST registration.
• Input Tax Credit: Filing GSTR-10 helps the taxpayer to claim any input tax credit that has not been claimed or reversed earlier. It is mandatory to claim the credit before filing GSTR-10.
• Compliance rating: Filing GSTR-10 on time helps maintain a sound compliance rating, which is vital for businesses in the long run.