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Basics on GSTR 10: Final return under GST

Written by Tushar Gupta, Team CNK RK

A Notification passed by the government on 26th October 2018 has birthed a new form called GSTR 10 under GST Act.

Many people tend to think that the final return (i.e. GSTR 10) is pretty much the same as the Annual return. Not quite, these two are very different.

Lets first clear the difference between these two returns; Annual return is filed by every registered person under GST once in a year through GSTR 9

whereas Final return is to filed by persons whose registration is cancelled or surrendered in the form GSTR 10.

With this clear, lets understand GSTR 10 in a more detailed manner.

Rules and Eligibility for GSTR-10

As per the Circular no. 69/43/2018 passed on 26th October 2018, under section no. 45 of CGST Act, every registered person whose GST registration is cancelled or surrendered, is required to file GSTR-10 within three months from the effective date of cancellation or the date of order for cancellation, whichever is later.

For instance, if the date of cancellation is 1st September, 2017 then the GSTR-10 must be filed by 30th November, 2017. The regular person registered under GST is not required to file this return.

The purpose of the GSTR-10 i.e. final return is to ensure that the taxpayer discharges any liability that he/she may have incurred under section 29 of the CGST Act. It may be noted that the last date for furnishing of FORM GSTR-10 by those taxpayers whose registration has been cancelled on Circular No. 69/43/2018-GST or before 30.09.2018 has been extended till 31.12.2018 vide notification No. 58/2018 – Central Tax dated the 26th October, 2018. ­

Details to be provided in GSTR-10

  1. Basic details of registered person (e.g. GSTIN, Legal Name etc)
  2. Business name
  3. Address details
  4. Application Reference Number in case of cancellation of registration
  5. Date of cancellation
  6. Reason for filing of the return (e.g. Due to cancellation order or Voluntary basis)
  7. Date and unique ID of cancellation order, if passed against the registered person
  8. Details of closing stock
  9. Amount of tax payable on closing stock

Penalty for Non filing or Late filing of GSTR-10

If there is a delay in filing GSTR-10, then a notice will be sent to the registered person who has defaulted. The person will be given 15 days’ time for filing the return with all the documents required. Still, if the person fails to file the return, then the tax officer will pass the final order for the cancellation with the amount of tax payable along with interest and penalty.

Now the question arises, whether it is necessary to file the GSTR 10. The answer is yes!

It is mandatory for every registered person whose registration under GST is surrendered or cancelled to file form final return in form GSTR 10.

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