How to File GSTR-10? Final Return Under GST
GSTR-10 must be filed by a taxpayer whose GST registration has been revoked or surrendered. It is a list of the stocks that these taxpayers owned on the day before the cancellation date. It is a final one-time return that needs to be submitted within three months after the cancellation date or the cancellation order date, whichever comes first. In this article, we will explain the process of filing GSTR-10 on the GST portal in detail.
Table of Contents
What is GSTR-10?
GSTR-10 must be filed by a taxpayer whose GST registration has been revoked or surrendered. It is a list of the stocks that these taxpayers owned on the day before the cancellation date. It is a final one-time return that needs to be submitted within three months after the cancellation date or the cancellation order date, whichever comes first. Correct GSTR 10 filing is essential for a number of reasons:
Closure of GST Liability: This ensures that you have no unpaid taxes by formally closing your GST account.
ITC Reversal: It guarantees that any excess ITC claimed on your capital goods or remaining stock is reversed.
Refund Eligibility: In some circumstances, you may be able to get your excess tax back.
Pre-Requisites to File GSTR-10
The following are the prerequisites for submitting Form GSTR-10:
On the GST portal, taxpayers must have a working user ID and password.
Taxpayers must have submitted an application for registration cancellation, and the order should have been granted.
An order for registration cancellation should be given in the event that tax authorities "suo moto" cancel a registration.
Who Needs to File GSTR-10
GSTR 10 filing is not required for everyone. Businesses must make sure that:
Whether voluntarily or as a result of non-compliance, they may cancel their GST registration.
Give up their registration for GST: if their turnover is less than the cutoff point.
Furthermore, under certain conditions, some taxpayers, such as composition dealers and input service distributors (ISDs), might also be obligated to file GSTR 10.
Exemptions from Filing GSTR-10
Some taxpayers are not required to submit GSTR 10:
Input Service Distributors (ISDs): These taxpayers provide their branches or units with input tax credits.
Composition Scheme Taxpayers: These taxpayers choose a more straightforward tax plan with reduced rates and fewer requirements for compliance.
Non-Resident Taxable Persons (NRTPs): These taxpayers have registered for GST in order to make taxable supplies in India, even though they are not based there.
On behalf of the government, TDS/TCS Deductors/Collectors are in charge of taking taxes out of the taxpayer's pay cheque or collecting them at the source.
Unregistered Suppliers: These vendors are exempt from filing GSTR 10 since they are not registered for GST.
Casual Taxable Persons: These people occasionally make taxable supplies and may be excluded under certain circumstances.
Taxpayers who have not started a business after registering for GST: A taxpayer may not be obliged to file GSTR 10 upon cancellation if they have never carried out any business activity under their GST registration.
Steps to File GSTR-10 on the GST Portal
Step 1: Access the GST portal and log in.
Step 2: Go to the GSTR-10 page. Select Services > Returns > Last Return. Read the message displayed and click on ‘Prepare Online’. The GSTR-10 – Final return page will be seen.
Step 3: Update your correspondence address. Click "Save" after entering the address. There will be a confirmation message displayed.
Step 4: Update the cost accountant or chartered accountant's information. Information needed for the GST invoice:
Under "Particulars of certifying Chartered Accountant or Cost Accountant," update the following information about a CA or cost accountant.
The accounting firm's name.
The certificate's issuing chartered accountant or cost accountant's name.
The certifying firm's membership number.
Date of certificate issuance.
A scanned copy of the certificate should be attached.
Select "Save CA Details." A confirmation message will be displayed.
Step 5: Fill in the following tiles with the information about the commodities that are kept in stock (either as inputs for semi-finished or finished goods, on which ITC has been taken):
Tables 8A, 8B, and 8C contain those who have invoices.
In table 8D, those without invoices.
To reverse the previously claimed ITC, either under the pre-GST regime or under the GST regime, the necessary information is needed.
Filling 8A, 8B, and 8C tables
1. Select the tile labelled "Goods with invoices" (8A, 8B, and 8C).
2. Select "Add Details."
3. From the drop-down menu, choose the supplier's registration.
4.: As indicated in the above figure, enter the invoice data under either the Central Excise (CX)/VAT regime or the GST regime. Click "Save" to continue after using the "Add" button to input every item in the invoice. Information needed for the GST invoice:
a) Invoice/Bill of Entry Number, GSTIN Number, and Date of Entry
b) Details of the items needed for the GST invoice
c) Information needed for a Central Excise/VAT invoice
CX/VAT Number
Bill of Entry/Invoice Number
Date of Invoice/Bill of Entry
Details of the item
The total number of records, the value of the items, etc. will be updated in Tables 8A, 8B, and 8C after a taxpayer is transferred to the GSTR-10 dashboard landing page.
Filling Table 8D
Update the information in table 8D, which contains details on products without invoices, in the same manner as previously described for changing tables 8A, 8B, and 8C. Click "Save" after that. In this case, the taxpayer must change the products' type, description, total quantity, and taxable value rather than the invoice details. The taxpayer will be taken to the GSTR-10 page with the corrected information in Table 8D—details of goods without invoices—after the data update is successful.
Step 6: Examine the GSTR-10 Form. Once all the information has been entered, click "Preview Draft GSTR-10" to see the Form GSTR-10 draft summary page. To confirm the information, a taxpayer can now download the summary page.
Step 7: Pay to submit the GSTR-10 form. The "Proceed to file" button has to be clicked at this point. Once done, the message "Proceed to file request has been received" will be visible. Press the refresh button. The available balance in the cash and credit ledger will be displayed when the tile is clicked. There are now two possible scenarios:
Case 1: The cash/credit ledger's available balance is less than what is needed to offset the liabilities. In this instance, a taxpayer can use the cash or credit ledger's available balance for a partial payment and click "Create Challan" to make the remaining part. He can use the three methods listed below to pay:
Online banking
Over the counter
NEFT/RTGS
Case 2: The amount needed to offset the obligations is greater than or equal to the available balance in the cash or credit ledger. In this instance, the taxpayer can fully pay from the remaining amount in the cash/credit ledger; no extra funds are needed.
Step 8: Examine the preliminary GSTR-10. Before paying, review the draft GSTR-10 once again.
Step 9: Fill up Form GSTR-10 and submit it. Click "File GSTR-10" after selecting the "Declaration" checkbox and selecting the signatory information from the drop-down list. To continue, click "Yes" on the pop-up window. The "Submit application" page will then appear. EVC or DSC are the two options for filing.
Required Documents and Information
In order to properly file GSTR-10, you will require:
The GST cancellation order together with the cancellation's effective date.
Information about the most recent return submitted prior to termination.
Invoices for supplies that were shipped after the last return and up until the cancellation date.
Documents and invoices for the inventory that was on hand on the cancellation date, including purchase invoices for the purposes of substantiating claims for the Input Tax Credit (ITC).
Records You Must Maintain After Cancellation
A taxpayer must continue to maintain the following records after cancellation
Register of goods produced
Stock Register
Purchase Register
Sales Register
Output tax liability
Output tax paid
ITC availed
Deadlines for GSTR-10 and Penalties for Non-Filing
Within three months of the cancellation date or the cancellation order date, whichever comes first, GSTR-10 must be submitted. It is essential to meet this deadline in order to avoid penalties. The penalty for filing GSTR-10 after the deadline is INR 200 per day (INR 100 for CGST and INR 100 for SGST), up to a maximum of 25% of the taxpayer's state or union territory turnover.
Conclusion
A crucial step for companies that have cancelled their GST registration is filing GSTR-10, the Final Return. It guarantees that the taxpayer's GST responsibilities are fulfilled and that all outstanding tax bills are paid. It also ensures that any excess ITC has been refunded and that you may be eligible for any refunds. A seamless and legal closure of their GST registration can be guaranteed by taxpayers who prepare thoroughly, meet the filing requirements, and steer clear of typical blunders. Navigating the intricacies of GSTR-10 filing can be made easier with the help of GST experts and frequent updates from the GST Council.
FAQ
Q1. What is the final return under GST?
When a taxable person surrenders or cancels their GST registration, they must file a Final Return on Form GSTR-10. This is an accounting of the stocks that the taxpayer held on the day before the cancellation took effect.
Q2. What is the GSTR-10 due date?
GSTR-10 must be filed within three months of the day the GST registration was cancelled or surrendered, or the date of the cancellation order, whichever comes first. In order to prevent fines and guarantee a seamless exit from the GST system, it is imperative that this date be met.
Q3. Is GSTR-10 mandatory?
Yes, all taxpayers whose GST registration has been revoked or relinquished must complete GSTR-10.
Q4. How to file GSTR-10 after cancellation?
If a cancellation occurs, the Final Return on Form GSTR-10 must be submitted within three months of the cancellation order date or the effective date of the cancellation, whichever comes first.
Q5. Can I revise GSTR 10 after filing?
No, once GSTR 10 is filed, it cannot be changed. To correct mistakes or omissions, you can, nevertheless, submit an application for registration cancellation using FORM GST REG-16.
Q6. Is there a late fee for filing GSTR 10 after the due date is over?
Yes, late fees are applicable for filing GSTR-10 after the due date is gone. The cost has a maximum cap and is computed per day of delay.
Q7. What happens if I miss out on filing GSTR 10?
Penalties, tax authorities' notices, and even difficulties in terminating your GST registration may arise from failing to file GSTR 10. To prevent these problems, timely filing is crucial.
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