All about GSTR 10

Introduction

The Goods and Services Tax (GST) has streamlined the tax structure in India. As part of the GST compliance process, taxpayers are required to file various returns, including GSTR 10. In this article, we will discuss everything you need to know about filing GSTR 10, including its meaning, who needs to file it, the due date, and penalties for non-compliance.

Meaning of GSTR 10

GSTR 10, also known as the Final Return, is a return filed by a taxpayer whose GST registration has been cancelled or surrendered. It is a statement that contains details of all supplies made and received during the period from the effective date of cancellation or surrender of registration till the date of cancellation or surrender.

Who needs to file GSTR 10?

Any taxpayer whose GST registration has been cancelled or surrendered is required to file GSTR 10. It is important to note that GSTR 10 is a mandatory return, and non-compliance may result in penalties and legal consequences.

Due Date for Filing GSTR 10

The due date for filing GSTR 10 is within three months from the date of cancellation or surrender of registration. For instance, if a taxpayer surrenders their registration on 15th February 2023, the due date for filing GSTR 10 would be 15th May 2023.

Penalties for Non-Compliance with GSTR 10

Non-compliance with GSTR 10 can result in penalties and legal consequences. If a taxpayer fails to file GSTR 10 within the due date, they will be liable to pay a late fee of Rs. 100 per day of delay, subject to a maximum of 0.25% of the taxpayer’s turnover. Additionally, the taxpayer’s registration may be deemed to be active, and they may be required to file all pending returns and pay any outstanding tax liability.

Details to be provided in GSTR 10

GSTR 10 requires taxpayers to provide details of all supplies made and received during the period from the effective date of cancellation or surrender of registration till the date of cancellation or surrender. The return must also contain information about the input tax credit availed and utilized, stock held on the date of cancellation or surrender, and the tax liability arising from such stock.

Procedure for filing GSTR 10

To file GSTR 10, taxpayers must first log in to the GST portal using their credentials. They must then navigate to the “Services” tab and select “Returns” > “Final Return”. After selecting the financial year and tax period, taxpayers must provide the necessary details and submit the return. Once the return is submitted, an acknowledgement receipt with a unique reference number will be generated. Taxpayers must download and save this receipt for future reference.

Consequences of non-filing or delayed filing of GSTR 10

Non-filing or delayed filing of GSTR 10 can result in penalties and legal consequences. In addition to the late fee of Rs. 100 per day of delay, subject to a maximum of 0.25% of the taxpayer’s turnover, the taxpayer’s registration may be deemed to be active, and they may be required to file all pending returns and pay any outstanding tax liability. The taxpayer may also be subject to interest and penalties for any tax liability arising from the stock held on the date of cancellation or surrender.

Exceptions to filing GSTR 10

There are certain exceptions to the filing of GSTR 10. Taxpayers who have obtained registration under GST but have not made any supplies or received any goods or services during the period from the effective date of registration till the date of cancellation or surrender are not required to file GSTR 10. Additionally, taxpayers who have obtained a registration but have not commenced business and have subsequently surrendered their registration are also exempt from filing GSTR 10.

Key Takeaways

1. GSTR 10 is a return filed by a taxpayer whose GST registration has been cancelled or surrendered.
2. GSTR 10 is a mandatory return, and non-compliance may result in penalties and legal consequences.
3. The due date for filing GSTR 10 is within three months from the date of cancellation or surrender of registration.
4. Non-compliance with GSTR 10 can result in a late fee of Rs. 100 per day of delay, subject to a maximum of 0.25% of the taxpayer’s turnover.
5. If a taxpayer fails to file GSTR 10 within the due date, their registration may be deemed to be active, and they may be required to file all pending returns and pay any outstanding tax liability.

Conclusion

In conclusion, GSTR 10 is an important return that needs to be filed by taxpayers whose GST registration has been cancelled or surrendered. Failure to comply with the GSTR 10 filing requirements can result in penalties and legal consequences. It is important for taxpayers to be aware of the due date for filing GSTR 10 and ensure that they file the return within the stipulated time frame. By doing so, taxpayers can avoid unnecessary penalties and legal hassles.