If you own a business in India and want to close or stop your Goods and Services Tax (GST) registration, you need to take one last important step: file GSTR 10, your final GST return. This complete guide will tell you everything you need to know about GSTR 10, from who is eligible and when to file to step-by-step processes.

What is GSTR 10, and Why Does It Matter?

GSTR 10 serves as the closing chapter of your GST journey. It is a declaration of your final tax liabilities, Input Tax Credit (ITC) adjustments, and any remaining stock you might have. Filing GSTR 10 correctly is vital for several reasons:

• Closure of GST Liability: It officially closes your GST account, ensuring you do not have any outstanding tax obligations.
• ITC Reversal: It ensures you reverse any excess ITC claimed on your remaining stock or capital goods.
• Refund Eligibility: In some cases, you might be eligible for a refund of excess tax paid.

Who Needs to File GSTR 10?

Not everyone needs to file GSTR 10. It is mandatory for businesses that:

• Cancel their GST registration: Whether voluntarily or due to non-compliance.
• Surrender their GST registration: If their turnover falls below the threshold limit.

Additionally, certain taxpayers like Input Service Distributors (ISDs) and composition dealers may also be required to file GSTR 10 under specific circumstances.

Pre-Conditions for Filing Form GSTR 10

Prior to submitting GSTR 10, verify that you satisfy the following prerequisites:

1. A valid user ID and password: To access the filing system, you will require your GST portal credentials.
2. Cancellation Order: You must have either applied for cancellation and received an order or have been issued a suo-moto cancellation order by the tax authorities.

Exemptions from Filing Form GSTR 10

Certain taxpayers are exempt from filing GSTR 10:

• Input Service Distributors (ISDs): These taxpayers distribute input tax credits to their branches or units.
• Composition Scheme Taxpayers: These taxpayers opt for a simplified tax scheme with lower rates and limited compliance requirements.
• Non-Resident Taxable Person (NRTP): These taxpayers are not based in India but have obtained GST registration for making taxable supplies in India.
• TDS/TCS Deductors/Collectors: These taxpayers are responsible for deducting or collecting tax at source on behalf of the government.
• Unregistered Suppliers: These suppliers are not registered under GST and hence, not required to file GSTR 10.
• Casual Taxable Persons: These individuals may be exempt under specific conditions and engage in occasional taxable supplies.
• Taxpayers who have not commenced business after obtaining GST registration: If a taxpayer has never conducted any business activity under their GST registration, they might not be required to file GSTR 10 upon cancellation.

GSTR 10 Due Date and Penalties

Filing GSTR 10 is typically due within three months of the date of cancellation or surrender of GST registration. Late filing can result in penalties:

Documents Required for GSTR 10 Filing

Gather the following documents before you begin the filing process:

• Final invoices issued
• Final purchase invoices received
• Bank statements
• Stock details (if applicable)
• Debit/credit notes issued or received
• Details of any pending advances

Step-by-Step Guide to Filing GSTR 10

You have two options for filing GSTR 10: online through the GST portal or offline using FORM GST REG-16. Visit the official GST Portal website for more information. Here is a breakdown of both methods below.

Online Filing (via GST Portal):

3. Log in: Access the GST portal using your credentials.
4. Navigate to Returns Dashboard: Go to the ‘Services‘ tab, then ‘Returns,’ and select ‘Final Return.’
   
5. Prepare Online: Click the ‘Prepare Online‘ button under the GSTR-10 tile.
   
6. Fill in Details: Enter details in tables 8A, 8B, 8C, and 8D as applicable.
   • Table 8A: Details of outward supplies made during the period from the effective date of cancellation to the date of cancellation order.
   • Table 8B: Details of inward supplies received from registered persons from the effective date of cancellation to the date of cancellation order, on which ITC is eligible.
   • Table 8C: Details of ITC to be reversed.
   • Table 8D: Tax payable and paid.
     
7. Preview and Submit: Review the entered details, make any necessary corrections, and click the ‘Submit‘ button.
   
8. File containing the DSC/EVC: Sign the return with your Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Offline Filing (using FORM GST REG-16):

9. Download: Download FORM GST REG-16 from the GST portal.
10. Fill in Details: Fill in all relevant information manually.
11. Generate JSON File: Use the offline utility tool to generate a JSON file of your filled form.
12. Upload JSON File: Log into the GST portal and navigate to the GSTR-10 tile. Click ‘Prepare Offline’ and upload the JSON file.
13. File with DSC/EVC: Once the file is validated, sign the return using your DSC or EVC.

Important Considerations:

• Timeline: Remember that the due date for filing GSTR 10 is usually within three months from the date of cancellation or surrender of your GST registration.
• Accuracy: Double-check all information before filing, as errors can lead to complications and penalties.
• Professional Assistance: If you are unsure about any aspect of the filing process or ITC reversal calculations, consult a tax professional.

Input Tax Credit (ITC) Reversal

One of the critical aspects of GSTR 10 is ITC reversal. This means you need to adjust for any excess ITC claimed on your remaining stock or capital goods. The reversal calculation can be complex, so it is recommended to consult a tax professional if you are unsure.

Common Challenges and Solutions in GSTR 10 Filing

Filing GSTR 10 can sometimes be tricky. Here are some common issues and how to overcome them:

The Effect of GSTR 10 on Your Business

Filing GSTR 10 properly is critical for completing your GST chapter successfully. It ensures you have met all your tax obligations, reversed excess ITC, and potentially claimed any eligible refunds. This paves the way for a clean financial closure of your business.

Conclusion

Understanding and correctly submitting GSTR 10 is critical for any firm terminating or cancelling its GST registration in India. By following this guide, you can navigate the process with confidence and ensure a seamless transition.

Remember, timely and accurate filing is key. If you have any doubts, do not hesitate to seek professional guidance from a tax expert or chartered accountant.

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