GSTR-10: The Final Return
Taxpayers whose Goods and Services Tax (GST) registration has been canceled or given up must make a very important final return called GSTR-10. This return officially closes the GST account and makes sure that all tax debts are taken care of before the user leaves the GST system. The blogs has covered GSTR 10 applicability, due date and filing procedure.
What Does GSTR-10 mean?
GSTR-10, which is sometimes called the “Final Return,” is a one-time return that registered taxable people who have chosen to cancel or give up their GST registration must file. The form records information about the stock that was held on the day before the termination date. This includes inputs, semi-finished goods, finished goods, input services, and capital goods. It also includes the tax that needs to be paid on that ending stock, making sure that any input tax credit (ITC) that was claimed earlier is properly reversed or accounted for. Filing GSTR-10 is required to make sure that the taxpayer does not owe any GST and to stay in line with GST rules.
Who Needs to Fill Out GSTR-10?
- People whose GST registration has been revoked or given up are the only ones who need to file a GSTR-10. This includes regular users whose tax ID has been revoked.
- Composition plan users whose registration has been revoked.
- Taxpayers who freely gave up their GST registration.
- People who are still registered for GST or who are still doing business under GST do not need to make this return.
When You Need to File GSTR-10
You have to file GSTR-10 no later than three months after the date of cancellation or the date of the cancellation order, whichever comes first. Say a taxpayer’s GST registration is revoked on January 1, 2025, but the order for cancellation is received on January 5, 2025. This means that the final return must be made by April 5, 2025. To escape fines and legal problems, it’s important to file on time.
What You Need to Put in GSTR-10
The GSTR-10 form needs the following important information:
- Each user has a GSTIN, which stands for “Goods and Services Tax Identification Number.”
- The application reference number (ARN) of the rejection or surrender form.
- The date that the rejection or surrender takes effect.
- Information about the cancellation order, such as the date and unique ID number.
Details about the closing price on the day before the cancellation, such as:
- Things in stock.
- Inputs that are found in semi-finished goods.
- Things that go into making finished things.
- Input services.
- Things that are considered capital goods.
- The stock that is being sold will be taxed.
- Address for sending mail in the future.
- Information about the person who is allowed to sign the return.
How to File GSTR-10 Step-by-Step
- To get into the GST Portal: Use the correct credentials to get to the official GST portal.
- Get to the Final Return: Click on Services, then Returns, and then Final Return (GSTR-10).
- Prepare Online: To enter the necessary information straight on the portal, click on “Prepare Online.”
- Type in your address for correspondence: Fill in or check the address so that you can be contacted in the future.
- Fill in Stock and Tax Information: Show information about inputs, capital goods, and the tax that needs to be paid on ending stock.
- Formal Statement and Proof: Check the box next to “Declaration” and then pick the person who is allowed to sign.
- Fill out the tax return: Use a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC) to send in the return.
When you’re done filing, you can download the acknowledgment receipt (ARN) for your information.
Fines for Not Filing or Filing Late
If you don’t file GSTR-10 by the due date, you will have to pay a late fee of Rs. 100 per day for CGST and Rs. 100 per day for SGST, for a total of Rs. 200 per day until the return is made. Since there is no upper limit on this fine, delays can cause a lot of money problems. Not filing may also lead to legal problems and make it harder to follow GST rules in the future.
Why it’s Important to File GSTR-10 to Close Your GST Account: By filing GSTR-10, the GST account is officially closed, and no more taxes will be due.
Reversal of ITC: This makes sure that the ITC claimed on inputs and capital goods that are in stock is taken back or explained.
Compliance: This helps businesses stay in line with GST rules and avoid fines.
Transparency: This makes it easy to see what stock is available and how much tax is owed at the time of withdrawal.
Avoids Legal Problems: This stops legal problems from happening when final returns aren’t filed or are filed late.
Get Started with TaxDunia
Indian users whose GST registration has been revoked or given up must file a GSTR-10 as the last and final step in the GST compliance process. The form needs to be turned in within three months of the cancellation or cancellation order date, whichever comes first. The return makes sure that all debts are paid off and that the taxpayer’s GST account is closed correctly. It is important for companies leaving the GST regime to make sure they file GSTR-10 on time and correctly so they don’t get fined or have legal problems. Reach out to TaxDunia to ensure a smooth filing of GST returns.
