Final Return after cancellation of GST registration

Final Return after cancellation of GST registration
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Final Return after cancellation of GST registration

What is GSTR 10?

GSTR 10 is the Final Return. It is a statement of stocks that was held by such taxpayer on the day immediately preceding the date from which cancellation is made effective. It would also include the details of input tax credit involved in closing stock (including inputs and capital goods) which is to be reversed/ paid by the taxpayer while filing the return. One must note that until you file GSTR 10, the process of cancellation of registration does not get over.

Note: Filing GSTR 10 the final return doesn’t mean you are relieved from the compliance of filing GSTR 9/9A the annual return.

Note: Login credentials on GSTN portal continue to remain active until all the required compliances which are to be fulfilled after cancellation are not completed. 

Some important points to be considered for GSTR 10
  • One has to discharge the full liability while filing GSTR 10.
  • GSTR 10 cannot be revised once filed.
  • GSTR 10 can be filed nil too.
  • GSTR-10 can be signed using DSC or EVC.
  • An ARN  will be generated on successful filing of the Form GSTR-10. An SMS and email will be sent to the applicant on the registered mobile number and registered email id.
Who has to file GSTR 10?

It is to be filed by the person whose registration has been cancelled by the proper officer or has surrendered the registration then the Final return in Form GSTR 10 needs to be filed.

Note: Only the taxpayers who have cancelled their registration will be able to see the link of Final return in the tab Services>>Returns>>Final Return. A taxpayer who has active GSTIN and has not filed an application for cancellation of registration or cancellation order has not been issued will not be able to see the Final Return on the dashboard.

What is the due date for GSTR 10?

The final return in Form GSTR 10 needs to be filed within three months of the date of cancellation or date of order of cancellation, whichever is later.

Late fees as capped vide CGST notification no. 68/2020 dated 21st September 2020

A CGST notification no. 68 dated 21st September 2020 has been issued for providing a one-time capping the late fees.

Late fees payable as per section 47 for the delay in filing GSTR – 10 after the due date of cancellation.

GST registration cancelled:  Upto 21st September 2020.

Prescribed period for filing – 22nd September 2020 to 31st December 2020

Late Fees:   Late fees will be Rs 500 ( Rs. 250 towards CGST + Rs. 250 towards SGST/UTGST).

Note: Late fees u/s 47 is waived off not the interest u/s 50 for non-payment or delayed payment.

What was the due date for filing GSTR 10 for the taxpayers who have cancelled before 30th September 2018?

As it was the first year of implementation, CBIC provided taxpayers relief to the taxpayers whose registration was cancelled on or before the 30th September 2018. They were allowed to furnish the final return in FORM GSTR-10 till 31st December 2018. A CGST Notification no. 58/2018 dated 26th Oct 2018 was issued for the same.

What happens if GSTR 10 is not filed within the prescribed due date?|What is the penalty for not filing GSTR 10?

If a taxpayer does not furnish the GSTR 10 (Final Return), then the Proper Officer will send a notice to the registered person who has defaulted. The person will be given 15 days time for filing the final return with all the documents required.

But if the person still fails to comply with the requirement of notice and furnish GSTR 10 then the Proper Officer will pass the final order for the cancellation with the amount of tax payable along with interest and penalty.

A general penalty of Rs 100 per day towards CGST and Rs 100 per day towards SGST will be levied. The maximum penalty is Rs. 5000 for each Act.

What are the practical problems faced by the taxpayer?
  • GSTR 10 does not become active even after 90 days of filing an application for cancellation. As per the experience of taxpayers, it gets activated once the order for cancellation is passed.
  • One has to check the status of a registration in Form REG 16 first to verify.
  • Some experts also suggest that a request can be made to the proper officer to activate GSTR 10.
Relevant section and rule for the final return GSTR 10

Section 45 of the CGST Act 2017 – Final Return

“Every registered person who is required to furnish a return under sub-section (1) of section 39 and whose registration has been cancelled shall furnish a final return within three months of the date of cancellation or date of order of cancellation, whichever is later, in such form and manner as may be prescribed.”

Rule 81 of CGST Rules 2017 – Final return

“Every registered person required to furnish a final return under section 45, shall furnish such return electronically in FORM GSTR-10 through the common portal either directly or through a Facilitation Centre notified by the Commissioner.”

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About CA Ankita Khetan 165 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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