What is GSTR 10? Every taxpayer with Goods and Services Tax or GST registration, who surrenders/cancels the registration, is mandatorily required to fill in the Form GSTR 10 when filing the final return. This is to be done within 3 months of cancellation, or late fees need to be paid. According to the September 21st 2020 update, the taxpayers who have not filed their final return and GST Form 10 can do so with a late fee reduced to Rs 500/-. Let’s proceed and explore the GST 10, final return under GST, GSTR 10 late fees and how to file GSTR 10 online.
Who needs to file the GSTR 10?
The GST Form 10 must be mandatorily filed by the taxpayers whose GST registration has been cancelled or surrendered. All regular taxpayers with a GST registration need not fill this form, such as:
- Persons who are taxable under Composite Tax.
- Distributors of Input Services.
- Taxable persons who are Non-resident Indians.
- Persons who collect at source TCS under S52 CGST Act.
- Persons who deduct at source TDS under S51 CGST Act.
When is the due date for GSTR 10?
The GST final return must be filed within 3 months of the cancellation date or the date of the cancellation order. Otherwise, an individual needs to incur a GSTR 10 penalty. Suppose the cancellation date is April 2nd 2021, and the GST cancellation order is dated April 15th 2021, then the GST Form 10 needs to be filed by July 16th 2021, since the date of the cancellation order is April 15th 2021. The GST final return due date clause is thus applicable only when the cancellation order precedes the surrender of the GST registration.
How is Annual Return different from Final Returns?
The Annual Return is filed by every GST-registered taxpayer as a standard return under the GST Act annually in the return Form GSTR-9. On the other hand, the Final return is filed when your GST registration is surrendered/terminated/cancelled. The taxpayer is then required to file a Final Return with GST Form 10 within 3 months of his request for cancellation of orders of cancellation of GST registration, whichever is earlier.
GSTR 10 Penalty Clause
When the GSTR 10 is not filed on or before the specified GSTR 10 due date, a notice gets sent to the taxpayer. The taxpayer is allotted 15 days within which the final return, GST Form 10 and all documents required must be filed. Failure to do so means the tax officer issues the final cancellation order mentioning the GSTR 10 late fee and tax payable.
How to file GSTR 10?
A total of 11 sections are to be filled in the GSTR 10. The auto-populated sections on login are:
- Legal Name
- Goods and Services Tax Identification Number (GSTIN) registration
- Trade or Business Name
- Correspondence Address details.
The other 7 sections need to be filled manually, such as:
- Date of effective cancellation/ surrender of GST number: Here, you are required to fill in the GST registration order cancellation date.
- Cancellation order Reference number: Your cancellation order always has a unique number or ID mentioned in it.
- Cancellation Order Date: This date corresponds to the date of issue of the cancellation order of GST registration.
- Closing Stock Particulars: Here, the taxpayer is to furnish all closing stock details as on the date of the business’ closure. Amounts in credit by way of input tax corresponding to this stock has to be paid with the final return. Note that under S 8, you are required to fill in details of closing stock in GST at-
- 8(a) Input stock where invoices are present.
- 8(b) Stock input of finished and semi-finished goods where invoices are present.
- 8(c) Stocks list of machinery and Capital goods.
- 8(d) Inputs stock as finished or semi-finished goods where invoices are not available.
- Details of Tax paid and payable: Here, you must provide an ITC tax reversal for tax paid and payable and transfer the amounts from the electronic credit/ cash ledgers under the heads of SGST, CGST, IGST and details of the cess.
- Late fee / Interest paid / payable: Provide the category-wise late fee/interest breakup of the late fee/ interest paid or payable.
- Verification: Confirm details filled in and verify the correctness of the GSTR 10.
After verifying the details, you must digitally sign the form using a DSC or digital signature certificate or provide the Aadhaar-based verification when authenticating the Form-10 return.
Important details when filling up stock details
How to file GSTR 10 nil return? The formula for value declared on the stock in machinery and capital goods when the end returns are made is calculated, taking useful life to be 5 years from the date of purchase/ invoice.
In simple words, the formula is [Invoice value less 1/60th value per month or part of a month.
When invoices for finished or semi-finished goods are not present, the amount must be in accordance with Rule 44(3) CGST and estimated at market value. It also has to be certified by a practising Cost or Chartered Accountant and provided with GSTR 10 forms.
Take a quick look at the forms in a GST form 10.
Filing the GST form 10 online on the GST Portal
Pre-requisites for filing:
When filing the GST From 10, you will need:
- GST Portal’s password and valid User ID.
- The request for cancellation of GST registration filed or cancellation of registration orders with reference number and date, even in ‘suo moto’ (meaning taking action taken on own accord without other party requests) orders for cancellation of GST registration.
Guide to online filing of GSTR 10
Step 1: Log in to the portal for GST using your User ID and password.
Step 2: To navigate to the page for GSTR-10, use the Services tab and choose the Final Returns option, as in the pictures below.
Do read the message providing both offline and online options to prepare your GST form 10, and then choose the ‘Prepare Online’ tab by clicking on it.
The next page displays the auto-populated GSTR 10 as below.
Step 3: On the address tab, update your correspondence address and ‘Save’ the details by clicking on the save option as in the picture below.
A confirmation message pops up.
Step 4: Next, click and update the Cost/Chartered Accountant details under the ‘Particulars of certifying Cost/Chartered Accountant, name of the Cost/Chartered Accountant and accounting firm and the date of issue of the certificate.
Now upload the scanned certificate copy and click the ‘Save’ tab to get a confirmation message, as shown in the picture below.
Step 5: Now move to S8, where you enter the stock details of finished/semi-finished goods, on which Input Tax Credit or ITC has been availed as under S8 A, B, C where invoices are present and 8D where invoices are not present. This step reverses all input credits availed under the pre-GST and GST regime.
Click on the tile for goods with invoices as in the picture below.
Step 6: Choose ‘Add Details’ and select the supplier's registration from the drop-down list as in the picture below.
Step 7: Enter details under Central Excise (CX)/ Value Added Tax (VAT)/ GST regimes. Once added, don’t forget to hit the ‘Save’ tab and proceed. Ensure each invoice details like the GSTIN Number, Bill of Entry or Invoice Number and date with the item details are correctly entered as shown in the picture below.
Step 8: Do the same if entering the VAT/ Central Excise invoice. Once done, the number of records will be displayed on saving the tile details, as shown below.
Step 9: Proceed to fill in the 8D tile for goods without an invoice as in the picture below and click on ‘Save’ to update the records.
Step 10: Now preview the GSTR 10 details using the ‘Preview Draft GSTR-10’ tab and choose to download and verify the summary page details.
Step 11: The next step is to make the tax payment.
Click the ‘Proceed to file’ tab and click refresh to get the screen shown below. It takes some time to display the message. Then the screen shows ‘Ready to File’ and the ‘Amount of tax paid/payable’ tiles. Enter details and ‘Save’ again. When done, move to the verification section and use the DSC or Aadhar-based option to file Form -10.
GSTR 10 offline tool
Step 1: To open the downloaded GSTR 10 offline tool, repeat the first few login procedures and select the offline option under downloads as in the picture below.
Step 2: Use ‘Download’ and ‘Proceed’ tabs to get this screen.
From the zip file, extract the GST 10 offline file and open the Excel file below.
Step 3: Use ‘Enable Editing’ and ‘Enable Content’ tabs to enable the macros file. Always choose the latest version.
Step 4: To add details, use the ‘Home’ worksheet tab and fill in personal details that are not automatically populated. Fill in your GSTIN, cancellation date, reference number and date of order in DD-MM-YYYY format.
Step 5: Next move to the ‘Invoice Available’ tab and fill in details of 8A, B, C as you would in the online method. Proceed to fill 8D under the ‘Inv_Not_Avail tab’ as shown in the following pictures.
Remember that the supplier invoices and their details of GSTIN/ VAT/CX are unavailable. Fill in all the details as you would online.
Important notes in filling the columns/fields in the offline utility
- Since no auto-population happens, you must enter supplier GSTIN, details of VAT/CX, trade and legal name, invoice number and date in dd-mm-yyyy format, type of goods from drop-down list and stocks held not exceeding 50 characters and in an alpha-numeric format including characters like ‘-‘ and ‘/’. Unique Quantity Code (UQC) is also from a drop-down list. The quantity to be entered is 13 digits before and 2 digits after the decimal point.
- For inter-state supplies, enter the Integrated Goods and Services Tax (IGST) amount. For intra-state supplies, enter both State Goods and Services Tax (SGST) and Central Goods and Services Tax (CGST) amounts. If cess is applicable, enter it. You can use the ‘Delete’ and ‘Add’ options to do so.
- The worksheet does not include the date and invoice number columns. You also need to enter the ‘Sl. No.’ mandatorily when filling in the invoice details. Ensure you hit the ‘Save’ or ‘Validate Sheet’ tab often enough.
When filing the GST 10 returns and maintaining accounts, you have to ensure many compliance details even when closing down the GST registration. If not, you can incur penalties, and interest is charged on the amounts due. We hope we have provided valuable information on how to do the final return under GST. Using this, you can file the GST Form 10, either through an online or offline process.
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