GSTR-10 Filing: Eligibility, Due Date, Late Fees & Process

• Mandatory for taxpayers who cancel or surrender their GST registration.
• Must be filed within three months from the date of cancellation or the cancellation order.
• ₹200 per day penalty for late filing, with no upper limit.
• Ensures all tax liabilities are cleared and unutilised ITC is reversed.
• Once submitted, the GSTR-10 cannot be revised or modified.

GSTR-10 is a final return that must be filed by taxpayers who cancel or surrender their GST (goods and services tax) registration. It ensures that all pending tax liabilities are settled and any unutilised input tax credit (ITC) is reversed. Filing a GSTR-10 within the prescribed time frame is essential to avoid penalties and legal complications. This guide covers applicability, due date, late fees, and the step-by-step process to help taxpayers comply with GST regulations seamlessly.

GSTR-10 is a final GST return that must be filed by taxpayers whose GST registration has been cancelled or surrendered. It ensures the settlement of outstanding tax liabilities and must be filed within three months from the date of cancellation or the issuance of the cancellation order, whichever is later. Format of GSTR-10 GSTR-10 is a final return form filed by taxpayers who have cancelled their GST registration. It ensures all pending liabilities are settled before the business is officially deregistered. The form consists of several sections. Each section captures specific details related to the taxpayer, tax payments, and closing stock. Below is a breakdown of the key parts of GSTR-10:

1. GSTIN and Basic Details

• Enter the GSTIN (Goods and Services Tax Identification Number) of the taxpayer.
• Provide the legal name and trade name (if applicable).
• Mention the address of the business.

2. Effective Date of Cancellation

• State the date on which GST registration was cancelled.
• This should match the cancellation order issued by the tax authorities.

3. Closing Stock Details

• Declare the closing stock of goods held at the time of cancellation.
• Report the input tax credit (ITC) availed on this stock.
• Provide details like HSN code, quantity, and taxable value of the stock.

4. Tax Payable and Paid

• Calculate the tax liability on closing stock.
• Mention any pending tax dues before deregistration.
• Provide details of tax paid under CGST, SGST/UTGST, IGST, and Cess.

5. Verification and Declaration

• The taxpayer must digitally sign the form.
• Confirm that the information provided is true and correct.

Once the form is submitted, the taxpayer receives an acknowledgement receipt, completing the GST exit process. Filing GSTR-10 on time prevents penalties and legal issues.

Taxpayers whose GST registration has been cancelled or surrendered must file GSTR-10 to settle outstanding tax liabilities and reverse unused ITC. The following taxpayers must file GSTR-10:

• Those who voluntarily cancel their GST registration.
• Taxpayers whose registration is cancelled by the tax authorities.
• Businesses that surrender their GST registration.

Input service distributors, composition scheme taxpayers, NRTPs (non-resident taxable persons), and entities deducting TDS/TCS ( tax deducted at source /tax collected at source) under GST are exempt from filing GSTR-10. The following categories of taxpayers are not required to file GSTR-10:

• Input Service Distributors (ISD)
• Composition scheme taxpayers
• Non-resident taxable persons (NRTP)
• Entities deducting TDS under Section 51 of the CGST (Central Goods and Services Tax) Act
• Entities collecting TCS under Section 52 of the CGST Act

GSTR-10 Due Date GSTR-10 must be filed within three months from the date of cancellation or the cancellation order, whichever is later. Failure to do so may attract penalties. Details Required for GSTR-10 Filing GSTR-10 consists of 11 sections, some of which are auto-populated. Key details include:

• GSTIN
• Legal name & trade name
• Address for correspondence
• Effective date of cancellation
• Reference number & date of cancellation order
• Closing stock details (including ITC to be reversed)
• Tax payable & paid
• Interest & late fees payable & paid
• Verification & authentication (via DSC (Digital Signature Certificate) or Aadhaar-based verification)

To file a GSTR-10 online, taxpayers must submit their final return on the GST portal after the cancellation of their registration. This process ensures that all pending tax liabilities are cleared and any unutilised input tax credit is reversed. The return must be filed within three months of cancellation to avoid penalties. Follow these steps to file a GSTR-10 on the GST portal:

• Log in to the GST portal using your credentials.
• Navigate to Services > Returns Dashboard.
• Select the financial year and return filing period.
• Click ‘Prepare Online’ under GSTR-10.
• Enter the required details and verify them.
• Preview and submit the return.
• Authenticate using DSC or Aadhaar-based verification.

GSTR-10 Late Fees & Penalty

• Late filing attracts a penalty of ₹200 per day (₹100 CGST + ₹100 SGST) with no upper limit.
• As per the CBIC update, for filings between April 1, 2023 – June 30, 2023, the late fee is capped at ₹1,000 per return (₹500 CGST + ₹500 SGST).

The GSTR-9 and GSTR-10 serve different purposes under the GST framework. The GSTR-9 is an annual return that must be filed by all registered taxpayers, summarising their yearly GST transactions, including inward and outward supplies, tax paid, and input tax credit claimed. On the other hand, GSTR-10 is a final return that only applies to taxpayers who have cancelled or surrendered their GST registration. It ensures that all outstanding liabilities are cleared and any remaining input tax credit is reversed. While GSTR-9 is a recurring compliance requirement, GSTR-10 is a one-time submission upon deregistration.

Key Takeaways - Mandatory for taxpayers cancelling their GST registration.- Must be filed within three months of cancellation.- Late fees: ₹200 per day with no upper limit.- Final settlement of tax liabilities & ITC reversal.- Cannot be revised after submission.

Filing GSTR-10 is essential for businesses that have cancelled their GST registration. It ensures compliance with tax laws and helps avoid legal complications. Below are the key benefits of filing GSTR-10: 1. Legal Compliance

• GSTR-10 is a mandatory return for cancelled GST registrations.
• Filing it ensures the business follows GST rules and regulations.
• It helps in avoiding penalties and legal actions from tax authorities.

2. Clears Outstanding Tax Liabilities

• The form requires businesses to settle any pending tax dues.
• It prevents future tax demands and unnecessary disputes.

3. Proper Closure of Business

• Filing GSTR-10 ensures the official closure of GST obligations.
• It confirms that the business has no pending tax responsibilities.
• This makes it easier to manage records and audits in the future.

4. Avoids Penalties and Fines

• Non-filing of GSTR-10 leads to heavy late fees and penalties.
• Timely submission saves money and prevents unnecessary financial burdens.

5. Helps in Future Registrations

• Proper filing ensures a smooth process if the taxpayer wants to register for GST again.
• It builds a good compliance record, reducing the chances of rejection in future applications.

Timely filing of GSTR-10 is crucial for a hassle-free exit from the GST system. It keeps the taxpayer legally safe and financially secure.

The GSTR-10 is a mandatory return for businesses cancelling their GST registration. It must be filed within three months of cancellation to avoid penalties. This final return ensures the settlement of outstanding liabilities and ITC reversal. Accurate tax calculations are crucial to avoid potential errors in filing. Using a GST calculator can help determine the exact tax liability, making the process smoother and more efficient.