GSTR-10, commonly referred to as the final return, is a one-time GST return that must be filed by a registered taxpayer when their GST registration is cancelled or surrendered, either voluntarily or through an order issued by the tax authorities. The purpose of this return is to formally close the taxpayer’s GST account by declaring the closing stock held on the day immediately preceding the cancellation and by settling any tax liability arising on that stock, including adjustments relating to remaining input tax credit.
Once GSTR-10 is successfully filed and accepted, the GSTIN is marked as permanently cancelled, and the taxpayer is no longer required to file regular GST returns for that registration.
This guide explains what GSTR-10 is, who is required to file it and who is exempt, the applicable due date, the return format, the late fee for delayed filing, the newly introduced three-year filing limit, and the step-by-step process for filing the return.
GSTR 10 - key highlights
| Particulars | Details |
|---|---|
| What is GSTR-10? | A one-time final GST return that must be filed when a GST registration is cancelled or voluntarily surrendered. |
| Who must file it? | Regular registered taxpayers whose GST registration has been cancelled or surrendered. |
| Who is exempt? | Input Service Distributors (ISDs), non-resident taxable persons, composition taxpayers, and persons liable to deduct TDS under Section 51 or collect TCS under Section 52 of the CGST Act. |
| Due date | Within three months from the effective date of cancellation or the date of the cancellation order, whichever is later. |
| Purpose of the return | To declare closing stock, calculate and pay any tax liability arising on such stock, and formally settle the taxpayer's GST account. |
| Late filing fee | Rs. 200 per day of delay (Rs. 100 under CGST and Rs. 100 under SGST), subject to applicable limits. |
| Revision facility | Not available. Once filed, GSTR-10 cannot be revised or amended. |
| Filing time limit | Effective from July 2025, GSTR-10 cannot be filed after three years from the original due date, as the GST portal restricts filing beyond this period. |
| Governing provisions | Governed by Section 45 of the CGST Act, with stock valuation requirements prescribed under Rule 44(3) of the CGST Rules. |
What is GSTR-10?
GSTR-10, also known as the final return, is a one-time document that has to be filed by a registered taxpayer under GST whenever they cancel their GST registration or at the time of closing down a business (either voluntarily or due to a government directive). This filing is required to comply with GST laws and to ensure all tax liabilities are properly settled.
GSTR-10 Due Date: When Should You File?
GSTR-10 must be filed within three months from the effective date of cancellation of GST registration or from the date on which the cancellation order is issued, whichever is later. For instance, if a GST registration is cancelled with effect from 1 January and the cancellation order is issued on 5 January, the due date for filing GSTR-10 will be three months from 5 January, which is 5 April.
Important: three-year filing restriction
With effect from July 2025, GST returns, including GSTR-10, cannot be filed after the expiry of three years from their respective due dates. The GST portal automatically blocks the filing of returns beyond this period. Therefore, taxpayers who have not yet filed GSTR-10 should do so as soon as possible to minimise late filing fees and avoid losing the opportunity to file the return altogether once the three-year limit has passed.
Who should file GSTR-10?
GSTR-10 is compulsory for all taxpayers whose GST registration has been cancelled or surrendered, including:
- Regular taxpayers: Businesses or individuals who choose to cancel their registration
- Composite taxpayers: Those under the composition scheme who cancel their registration
- Other registrants: Voluntary registrants who now wish to cancel
Not filing GSTR-10 can result in penalties and legal action.
Filing GSTR-10 is mandatory regardless of the reason for cancellation. Non-filing can lead to penalties and further legal actions. It ensures that all pending tax liabilities and input tax credits are adequately accounted for and settled. This final return helps the GST authorities maintain accurate records and ensures that the taxpayer does not have any outstanding dues, facilitating a smooth exit from the GST regime.
Details to be provided in GSTR-10
The GSTR-10 form consists of 11 sections. Some of these are auto-filled at the time of login, while others require manual input from the taxpayer. Below is a breakdown of the information included:
Auto-populated sections:
- The Goods and Services Tax Identification Number of the taxpayer
- Legal name as per the GST registration records
- Business or trade name
- Address for future correspondence (Registered business address)
Sections to be filled manually:
- Effective date of surrender or cancellation: Mention the official date from which the GST registration stands cancelled
- Reference number of cancellation order: Provide the unique ID issued by the GST authorities in the cancellation order
- Date of cancellation order: Enter the date on which the cancellation order was passed by the authorities
- Particulars of closing stock: Furnish details of closing stock held at the time of business closure. This includes:
- Inputs in stock (where invoice is available)
- Inputs in semi-finished or finished goods (where invoice is available)
- Capital goods or machinery in stock
- Inputs in stock or in semi-finished or finished goods (where invoice is not available)
- Tax payable and tax paid: Declare the tax payable and tax paid, including ITC reversal, using the electronic cash and credit ledgers under CGST, SGST, IGST, and cess
- Interest and late fee: Provide a break-up of interest and late fees payable and paid, category-wise
- Verification: Confirm all the details provided in the form. This must be digitally signed using a Digital Signature Certificate (DSC) or Aadhaar-based verification
Important note on stock declaration:
- If invoices are not available for inputs or goods in stock, their value must be calculated at market price in line with CGST Rule 44(3), certified by a practising chartered accountant or cost accountant.
- For capital goods or machinery, value must be calculated using the formula: invoice value minus 1/60th of the value for each month (or part of a month) since purchase, considering a useful life of five years.
Format of GSTR-10
The format of GSTR-10 is designed to capture comprehensive details required for the final return under GST:
Part 1 - Basic details:
- GSTIN
- Legal name and trade name (if any)
- Address of principal place of business
- Date of application for cancellation
Part 2 - Details of closing stock:
- Inputs in stock
- Inputs in semi-finished goods
- Inputs in finished goods
- Capital goods
Part 3 - Tax payable on closing stock:
- Tax amount for inputs
- Tax amount for semi-finished goods
- Tax amount for finished goods
- Tax amount for capital goods
Part 4 - Verification:
Declaration and signature by the authorised signatory
Step-by-step guide for filing GSTR-10 on the GST portal
- Log in to the GST portal using your registered credentials.
- Navigate to Services → Returns → Final Return (GSTR-10).
- Update the address to be used for future correspondence and, where applicable, provide the details of the Chartered Accountant or Cost Accountant who has certified the stock valuation.
- Enter details of the closing stock held immediately before cancellation, including inputs, semi-finished goods, finished goods and capital goods.
- The GST portal will automatically calculate the tax liability on the declared closing stock. This liability can be adjusted using the balances available in the electronic cash ledger and electronic credit ledger, as permitted.
- Pay any outstanding tax, interest and late filing fees that may be applicable.
- Review and preview the return carefully before submission, then file it using either a Digital Signature Certificate (DSC) or Aadhaar-based Electronic Verification Code (EVC), as applicable.
- After successful filing, note the Application Reference Number (ARN) generated by the portal. Once the return is processed and accepted, the GST registration status is updated to permanently cancelled.
Benefits of filing GSTR-10
Filing GSTR-10 offers several advantages for taxpayers whose GST registration has been cancelled or surrendered. Some of the benefits are listed below:
- Compliance: GSTR-10 is a mandatory requirement under GST law. Failure to file it on time can lead to late fees and legal consequences.
- Avoiding interest and penalties: Filing GSTR-10 within the due date helps taxpayers avoid interest and penalties. A delay in filing can result in a penalty of ₹100 per day or up to 0.25% of the turnover.
- Closure of registration: Submitting GSTR-10 ensures the proper closure of the GST registration, settling any outstanding liabilities before the cancellation or surrender.
- Input Tax Credit (ITC): It allows taxpayers to claim any unclaimed or unreversed input tax credit. Claiming the credit is mandatory before filing GSTR-10.
- Compliance rating: Timely filing of GSTR-10 helps maintain a positive compliance rating, which is important for the long-term credibility and operational success of the business.
What is the penalty for not filing GSTR 10?
Filing GSTR-10 after the prescribed due date attracts a late fee of Rs. 200 per day of delay, comprising Rs. 100 under CGST and Rs. 100 under SGST, until the return is filed. In addition, interest may be payable on any outstanding tax liability in accordance with GST provisions.
| Charge | Amount |
|---|---|
| Late fee | Rs. 200 per day of delay (Rs. 100 CGST + Rs. 100 SGST) |
| Interest | Applicable on any unpaid tax liability as per GST regulations |
| Maximum cap | Subject to notifications issued from time to time by the government |
Note on the maximum late fee cap
Unlike certain other GST returns, GSTR-10 has not always been subject to a single fixed maximum late fee cap. The applicable limit has changed over time through notifications issued by the Central Board of Indirect Taxes and Customs (CBIC).
For example, under a one-time amnesty scheme introduced in 2023, taxpayers who filed pending GSTR-10 returns within the specified relief period were eligible for a reduced late fee, capped at Rs. 1,000 (Rs. 500 under CGST and Rs. 500 under SGST).
As late fee caps and amnesty schemes may change periodically, taxpayers should verify the latest position on the GST portal before filing their return to ensure they are aware of any applicable concessions or revised limits.
Consequences of non-filing
If GSTR-10 is not filed after the due date, the GST authorities may issue a notice requiring compliance. Failure to respond to such a notice may result in further action by the department, including a best judgement assessment under Section 62 of the CGST Act. In such cases, the tax liability may be determined by the GST officer on the basis of available records and information.
Difference between annual return and final return GSTR-10
| Basis | GSTR-9 (Annual return) | GSTR-10 (Final return) |
|---|---|---|
| Purpose | Provides an annual summary of all GST transactions undertaken during a financial year. | Facilitates the final settlement of GST liabilities when a registration is cancelled or surrendered. |
| Who must file? | Regular taxpayers meeting the applicable turnover and filing requirements prescribed under GST law. | Taxpayers whose GST registration has been cancelled by the authorities or voluntarily surrendered. |
| Filing frequency | Filed once every financial year for as long as the GST registration remains active. | Filed only once, following the cancellation or surrender of GST registration. |
| Trigger for filing | Completion of a financial year. | Cancellation or surrender of GST registration. |
| Primary focus | Consolidated reporting of annual sales, purchases, tax payments and Input Tax Credit (ITC). | Declaration of closing stock, capital goods and any tax liability arising upon cancellation of registration. |
Common mistakes to avoid
- Missing the three-month filing deadline. Late fees continue to accrue for each day of delay, and from July 2025 onwards, GSTR-10 cannot be filed after three years from the due date as the GST portal blocks submission beyond this period.
- Failing to report closing stock accurately or overlooking the declaration of capital goods held at the time of cancellation.
- Not obtaining the required certification from a Chartered Accountant or Cost Accountant in cases where purchase invoices relating to the closing stock are unavailable.
- Assuming that GSTR-10 can be amended later. As a one-time final return, GSTR-10 cannot be revised after submission, making it essential to verify all information carefully before filing.
- Neglecting to file outstanding periodic GST returns or claim eligible refunds before submitting GSTR-10. Any pending refund applications should ideally be submitted before, or along with, the final return to ensure proper closure of GST obligations.
Conclusion
Understanding the requirements and procedures for filing GSTR-10 is crucial for businesses undergoing GST registration cancellation, as timely filing ensures compliance and avoids legal complications. Tools like a GST calculator can help with accurate tax calculations, while businesses looking for financial flexibility can consider options such as the Bajaj Finance Business Loan, which offers instant disbursement, a simplified application process, high loan amounts up to Rs. 80 lakh, all this with no collateral requirements, making it ideal for businesses aiming to grow and manage their finances efficiently.
