What is GSTR-10?
GSTR-10, also known as the ‘Final Return’, is a form that needs to be filed under the GST regime in India. This return is filed by taxable persons whose GST registration has been cancelled or surrendered. The primary purpose of GSTR-10 is to ensure that the taxpayer has paid off all liabilities before closing the GST account. It helps in maintaining the transparency and accountability of the tax system. GSTR-10 includes details such as stocks held, liabilities discharged, and input tax credits (ITC) utilised. The form is crucial for the proper closure of the GST registration.
GSTR-10 due date
The due date for filing GSTR-10 is within three months from the date of cancellation or the date of the cancellation order, whichever is later. It is essential to adhere to this deadline to avoid any penalties or legal issues. The due date ensures that all pending GST liabilities are settled in a timely manner.
GST filing on time also helps in smooth closure of the business under GST. The taxpayer must ensure that all necessary details are accurately filled out by the due date. Timely compliance with the due date prevents future complications with the GSTN authorities.
Who should file GSTR-10?
GSTR-10 must be filed by every taxpayer whose GST registration has been cancelled or surrendered. This includes regular taxpayers, composition taxpayers, and those registered under the special category. However, individuals who have migrated to the GST regime from the earlier tax regime are not required to file GSTR-10. It is essential for those whose businesses have been discontinued or transferred to another entity to file this return. By filing GSTR-10, taxpayers can ensure that they have cleared all their tax liabilities and dues, thereby avoiding any future legal complications.
Prerequisites for filing GSTR-10
- GST registration cancellation: Ensure that your GST registration has been officially cancelled or surrendered.
- Final invoice details: Keep the details of the final invoices issued during the period of active GST registration.
- Stock details: Prepare a list of stocks held on the date of cancellation, along with input tax credit availed.
- Liability and payment records: Maintain records of all liabilities and payments made under GST.
- Digital Signature Certificate (DSC): Ensure that your DSC is active and ready for use.
- Access to GST portal: Have access to the GST portal for online filing.
How to file GSTR 10?
- Log in to the GST portal: Access the GST portal using your credentials.
- Navigate to GSTR-10: Go to the ‘Services’ tab and select ‘Returns’ followed by ‘Final Return’.
- Fill in the details: Enter details such as final stock, tax paid, and any pending liabilities.
- Upload documents: Upload necessary supporting documents, if required.
- Review and submit: Double-check all entries to ensure accuracy.
- E-signature: Submit the form using a Digital Signature Certificate (DSC) or an electronic verification code (EVC).
- Confirmation: After successful submission, a confirmation message will be displayed.
What is the penalty for not filing GSTR 10?
Failure to file GSTR-10 can result in a penalty, known as a late fee. The late fee for not filing this return is Rs. 200 per day, with Rs. 100 each for CGST and SGST. However, the maximum penalty cannot exceed Rs. 10,000. Additionally, non-filing may lead to further complications, such as the blocking of GSTN services and inability to file future returns. It is crucial to file GSTR-10 on time to avoid these penalties and ensure that all tax liabilities are cleared. Legal action may also be initiated by GST authorities for non-compliance.
Details to be provided in GSTR-10
- Basic details: Include GSTN, legal name, and trade name of the taxpayer.
- Application reference number (ARN): Provide the ARN received upon cancellation of GST registration.
- Stock details: List details of stocks held, including input tax credit (ITC) availed.
- Tax liability: Mention any pending tax liabilities that need to be discharged.
- Payment details: Provide details of payments made towards tax liabilities.
- Certification: Certification by an authorised signatory with a digital signature.
- Additional information: Include any additional information relevant to the closure of the GST account.
Format of GSTR-10
- Part 1: Basic details of the taxpayer, including GSTN and legal name.
- Part 2: Details of the cancellation application, such as ARN and date of application.
- Part 3: Stock details, including the amount of input tax credit to be reversed or paid.
- Part 4: Tax payable and paid during the period.
- Part 5: Refund claimed, if any.
- Part 6: Details of other liabilities, if any.
- Part 7: Verification by the authorised signatory with the digital signature.
- Annexures: Supporting documents, if required.
Benefits of using a GST calculator for GSTR-10 filing
- Accuracy: A GST calculator helps in accurately calculating the tax liabilities and ITC to be paid.
- Time-saving: Automates complex calculations, saving time and reducing manual effort.
- Compliance: Ensures compliance with GST laws by accurately determining tax dues.
- Avoids errors: Minimises errors in calculations, thus avoiding penalties or fines.
- Financial planning: Helps in better financial planning by providing a clear view of tax liabilities.
- User-friendly: Simple to use, making it accessible even for those with limited tax knowledge.
- GST calculator: Specially designed for GST calculations, ensuring precise results.
Conclusion
GSTR-10, or the Final Return, is an essential compliance requirement under the GST regime in India. It is mandatory for taxpayers whose GST registration has been cancelled or surrendered to file this return. Timely and accurate filing of GSTR-10 ensures that all tax liabilities are settled, preventing future legal issues and penalties. Utilising tools like a GST calculator can facilitate accurate computation of taxes and streamline the filing process. Additionally, adherence to the due dates and proper documentation is crucial. Businesses should also explore options like a business loan to manage cash flow during the GST settlement process.
