GSTR-10 is a final return that registered taxpayers must submit if they have chosen to cancel their Goods and Services Tax (GST) registration. This document, mandated by GST law, must be filed within three months of cancellation. This guide offers a comprehensive overview of GSTR-10 requirements.

What is GSTR-10?

Taxable entities whose GST registration has been either surrendered or canceled are obligated to file GSTR-10, known as the final return.

GSTR-10 Due Date

The GSTR-10 return must be submitted within three months, calculated from the date of cancellation or the date the cancellation order was issued, whichever occurs later. For example, if a GST registration is canceled on January 1, 2025, and the cancellation order is received on January 5, 2025, the business must file GSTR-10 by April 5, 2025.

GSTR-10 Applicability: Who Should File?

GSTR-10 is mandatory solely for individuals whose GST registration has been either canceled or voluntarily surrendered. However, certain GST taxpayers are exempt from this requirement: Input Service Distributors (ISD), taxpayers under the Composition Scheme, Non-Resident Taxable Persons (NRTP), and individuals obligated to deduct Tax Deducted at Source (TDS) under Section 51 or collect Tax Collected at Source (TCS) under Section 52 of the CGST Act.

Details Required in GSTR-10

The GSTR-10 form consists of 11 distinct sections. Upon logging into the system, some information is automatically pre-filled:

• GSTIN (Goods and Services Tax Identification Number)
• Legal Name of the business
• Business or Trade Name
• Address for future communications

The taxpayer must manually provide details in the following sections:

1. Effective Date of Surrender/Cancellation: State the exact date of GST registration cancellation as indicated in the official order.
2. Reference Number of Cancellation Order: Enter the unique identification number issued by authorities when the cancellation order was passed.
3. Date of Cancellation Order: Specify the date on which the GST registration cancellation order was issued by the authorities.
4. Particulars of Closing Stock: Provide comprehensive details of all closing stock held at the time the business ceased operations. Any outstanding input tax credit associated with this stock must be settled with this return.

• Inputs in physical stock (where invoices are available)
• Inputs embedded in semi-finished or finished goods (where invoices are available)
• Capital goods or machinery held in stock
• Inputs in stock, or within semi-finished or finished goods (where invoices are not available)

5. Tax Payable and Paid: Disclose the input tax credit reversal or tax amount due and already paid. Also, report transfers from electronic cash and credit ledgers, categorized under CGST, SGST, IGST, and Cess.
6. Interest and Late Fee Payable and Paid: Present a detailed breakdown of any interest and late fees that are due and those that have been paid, itemized by tax head.
7. Verification: Confirm the accuracy and completeness of all information submitted in the GSTR-10 form. After accurately furnishing all required particulars, the taxpayer must digitally sign the return. This can be done either via a Digital Signature Certificate (DSC) or through Aadhaar-based signature verification to authenticate the submission.

Key Considerations for Stock Details:

• If invoices for declared stock of inputs, or inputs within semi-finished or finished goods, are unavailable, the value must be estimated at market price. This estimation should comply with CGST Rule 44(3) and requires certification from a practicing chartered accountant or cost accountant, which must be uploaded with GSTR-10.
• For capital goods or machinery valuation, a specific formula applies: Invoice Value minus (Value of 1/60th per month or part thereof). This calculation begins from the invoice or purchase date, assuming a useful life of five years.

Format of GSTR-10

The GSTR-10 form follows a specific structure and layout.

Penalty for Non-Filing of GSTR-10

Failure to file GSTR-10 by the stipulated due date will result in a notice being issued to the registered individual, granting a 15-day period to submit the return along with all necessary documentation. Should the taxpayer still neglect to file, the tax officer is authorized to issue a final cancellation order, stipulating the payable tax amount, applicable interest, and any penalties.

Distinguishing Final Return (GSTR-10) from Annual Return (GSTR-9)

Every registered person who pays tax as a normal GST taxpayer must file an annual return, submitted once a year using Form GSTR-9. In contrast, a final return, filed using Form GSTR-10, is mandatory only for individuals whose GST registration has been canceled or surrendered.