Understanding GSTR-10: A Comprehensive Guide to Filing Final Return

The Goods and Services Tax (GST) is a comprehensive tax regime that has been implemented in India since 1st July 2017. The GST has replaced multiple indirect taxes, such as excise duty, service tax, VAT, and others, with a single tax system. The GST Council has laid down various rules and regulations that businesses and taxpayers have to follow to comply with the GST. One such compliance is the filing of GST returns, and GSTR-10 is one such return that is required to be filed by taxpayers who have opted for cancellation of GST registration. In this article, we will discuss GSTR-10 in detail, including its due date, details to be furnished, and common errors while filing.

Introduction to GSTR-10

GSTR-10 is a return that is required to be filed by taxpayers who have opted for cancellation of GST registration. The final return, GSTR-10, is a summary of all the supplies made and received by the taxpayer from the start of the financial year until the date of cancellation of GST registration. The taxpayer needs to furnish the details of all the inputs, input services, and capital goods held by them on the date of cancellation, and pay any tax, interest, or penalty due as per the return. The GSTR-10 is a one-time return, and once filed, the GST registration of the taxpayer is deemed to be canceled.

Who is required to file GSTR-10?

The GSTR-10 return is required to be filed by any taxpayer who has opted for cancellation of their GST registration. The taxpayer must file GSTR-10 within three months of the date of cancellation of registration. The cancellation of registration may be initiated by the taxpayer or by the authorities, such as the tax office or the GSTN. Any taxpayer who has not made any supplies and has not received any supplies since the start of the financial year can file a nil return.

Due date and late fees for filing GSTR-10

The GSTR-10 return must be filed within three months from the date of cancellation of registration. If the taxpayer fails to file the return within the due date, a late fee of Rs. 100 per day (up to a maximum of Rs. 5,000) will be levied. If there is any tax, interest, or penalty due, the same must be paid along with the return. It is important to note that the taxpayer cannot file GSTR-10 after the due date, and the late fee cannot be waived.

Details to be furnished in GSTR-10

The GSTR-10 return has three main sections – Part A, Part B, and Part C.

Part A: This section contains the details of the taxpayer, such as their name, address, GSTIN, and date of cancellation of registration. The taxpayer must also mention the reason for cancellation, such as voluntary, non-filing of returns, transfer of business, or death of the proprietor.

Part B: This section contains the details of supplies made and received by the taxpayer from the start of the financial year until the date of cancellation. The details of outward supplies, inward supplies, and any adjustments made to the same must be furnished in this section.

Part C: The details of the inputs, input services, and capital goods held by the taxpayer on the date of cancellation of registration must be furnished in this section. The taxpayer must furnish the details of the stock held by them, such as quantity, description, and HSN code. The value of the such stock must be calculated as per the applicable GST rates. Any tax, interest, or penalty due on the such stock must also be paid along with the return.

Other GSTR List You Should Know:

• GSTR 3B
• GSTR 7

Common errors while filing GSTR-10

Filing GSTR-10 can be a challenging task, and taxpayers must be careful while furnishing the details. Some of the common errors while filing GSTR-10 are:

1. Incorrect details in Part A: Taxpayers must ensure that the details furnished in Part A, such as the name, address, GSTIN, and reason for cancellation, are correct and match with the records maintained by the authorities.
2. Incorrect details in Part B: Taxpayers must ensure that the details furnished in Part B, such as the details of outward and inward supplies and any adjustments made, are accurate and match with the records maintained by them.
3. Inaccurate calculation of tax, interest, or penalty: Taxpayers must ensure that the tax, interest, or penalty due on the supplies made and received by them and the stock held by them are calculated accurately as per the applicable GST rates.

Conclusion

Filing GSTR-10 is crucial compliance for taxpayers who have opted for cancellation of their GST registration. The return must be filed within the due date, and any tax, interest, or penalty due must be paid along with the return. Taxpayers must ensure that the details furnished in the return are accurate and match with the records maintained by them and the authorities. Any errors while filing the return may attract a late fee and may also result in further scrutiny by the authorities. Hence, taxpayers need to understand the provisions of GSTR-10 and file the return accurately and within the due date.

Frequently Asked Questions