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GSTR-10 Filing
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GSTR-10 Filing

Overview

What is a GSTR-10 Filing?

GSTR-10, commonly called the Final Return, is a one-time return prescribed under Section 45 of the CGST Act, 2017, read with Rule 81 of the CGST Rules, 2017, that must be filed by every registered taxpayer whose GST registration has been cancelled or surrendered — whether voluntarily by the taxpayer or by an order of the proper officer.

A Note on GSTR-10 (Final Return) Filing

Salient Features, Documents Required, Process and Frequently Asked Questions

1. Introduction

GSTR-10, commonly called the Final Return, is a one-time return prescribed under Section 45 of the CGST Act, 2017, read with Rule 81 of the CGST Rules, 2017, that must be filed by every registered taxpayer whose GST registration has been cancelled or surrendered — whether voluntarily by the taxpayer or by an order of the proper officer. Its purpose is to formally close out the taxpayer's GST account: it requires the taxpayer to declare the closing stock of inputs, semi-finished goods, finished goods, and capital goods held immediately before the effective date of cancellation, and to pay any tax liability arising from that stock, including reversal of input tax credit previously claimed on it.

GSTR-10 is unlike the periodic returns (GSTR-1, GSTR-3B) or the yearly GSTR-9, both of which apply to an active, ongoing registration. GSTR-10 is filed exactly once, only after cancellation, and marks the final compliance checkpoint before the GSTIN is permanently closed on the GST portal.

2. Salient Features

One-Time, Exit-Only Return GSTR-10 is filed only once, and only in the specific situation where a GST registration has been cancelled or surrendered; it does not apply to a taxpayer whose registration remains active.
Applicable Regardless of the Reason for Cancellation GSTR-10 must be filed whether the cancellation was voluntary (initiated by the taxpayer), ordered suo moto by the proper officer, or arose from transfer, amalgamation, or closure of the business.
Certain Categories are Exempt Composition taxpayers (who instead file their own closing formalities), Input Service Distributors, non-resident taxable persons, persons required to deduct tax at source under Section 51 (TDS deductors), and persons required to collect tax at source under Section 52 (TCS collectors, such as e-commerce operators) are not required to file GSTR-10.
All Periodic Returns Must Be Filed First GSTR-10 cannot be filed until every applicable GSTR-1 and GSTR-3B return up to the date of cancellation has already been filed, since the final return is meant to close out, not replace, ongoing compliance.
Permanent Closure on Acceptance Declares closing stock and reverses related input tax credits. Once GSTR-10 is successfully filed and accepted, the GSTIN is marked as permanently cancelled on the GST portal, and no further periodic GST returns need be filed for that registration.

Due Date & Late Fee Penalties

  • Standard Due Date: GSTR-10 must be filed within three months from the later of two dates: the effective date of cancellation of registration, or the date on which the cancellation order is issued.
  • Late Fees and Notice: Failure to file within the due date results in a standard notice giving 15 days to file. Continued default attracts a late fee of ₹200 per day (₹100 under CGST and ₹100 under SGST) up to a maximum statutory cap of ₹10,000, along with 18% per annum interest on any unpaid tax.
  • Three-Year Outer Filing Limit: With effect from July 2025, GST returns, including GSTR-10, cannot be filed after three years from their original due date; taxpayers with long-pending accounts must act without further delay.
  • Digital Verification: Returns must be completed using an Electronic Verification Code (EVC) OTP or a Class 3 Digital Signature Certificate (DSC); a DSC is mandatory for all corporate setups and LLPs.

3. Documents Required

GST Final Returns require precise validation of remaining assets. Compile the following document sets and data profiles before initiating the process:

Category Prescribed Document & Reconciliation Profile
3.1 Cancellation Records & Stock Registers Cancellation Order: The formal order copy (Form GST REG-19) or surrender confirmation showing the exact effective date of cancellation.
Closing Stock Inventory: Detailed quantities and valuation records of stock held immediately before the cancellation date, categorized into inputs, semi-finished items, and finished goods.
Capital Goods Ledger: Complete list of remaining capital goods and plant & machinery, including their purchase invoice dates and original cost metrics.
3.2 Invoices, Certificates & Portals Purchase Invoices: Supporting tax invoices for all components mapping to the remaining closing stock, used to determine the exact ITC amounts to reverse.
CA/CMA Certificate: A formal certification from a practicing Chartered Accountant or Cost Accountant detailing closing values, mandatory where corresponding invoices for the stock items are unavailable.
Portal Credentials: Active portal access logins along with EVC mobile/email links or active Class 3 DSC tokens.
Important Reminder: Since GSTR-10 cannot be revised once filed, all stock figures and ITC computations should be carefully reconciled with books beforehand.

4. Process

The Final Return is processed through the common dashboard under Services > Returns > Final Return, following a structured sequential order:

Step 1: Accessing the Form and Entering Address Details

Log into the portal, click on the Final Return tile, and verify auto-populated parameters like your GSTIN and Cancellation Order Details. Provide a valid correspondence address and the name of the authorized signatory for future communications.

Step 2: Uploading Stock Details and Reversing ITC

Navigate to the stock tables and input invoice-level particulars for remaining inputs and capital assets. For capital assets, the system calculates a pro-rata tax liability based on the remaining useful life (taking life as 5 years), while inputs require a direct reversal of the original ITC claimed. Upload the CA certificate if specific invoices are missing.

Step 3: Previewing, Offsetting Liabilities and Final Submission

Generate and carefully review the draft preview of the return. Click on the liability offset options to balance the calculated stock taxes using available credit balances or cash ledger deposits. Authenticate and finalize the exit return using your EVC OTP or Class 3 DSC token.

5. Frequently Asked Questions (FAQs)

Collapsible FAQs (or accordions) let visitors browse questions and click to expand answers, keeping pages uncluttered

What is the exact time frame within which GSTR-10 must be filed? +
GSTR-10 must be filed within three months from the later of two dates: the effective date of cancellation of registration, or the date on which the official cancellation order is issued by the proper officer.
What happens if GSTR-10 is never filed by a cancelled taxpayer? +
If a taxpayer fails to file GSTR-10, the department issues a non-compliance notice giving them 15 days to file. If they still do not comply, the proper officer can pass a final order determining the tax liability, along with interest and penalties, under best-judgment assessment provisions.
Can GSTR-10 be revised or corrected after it has been filed? +
No. Once filed, GSTR-10 cannot be revised or amended on the GST portal. It is critical to carefully verify all figures and values before final submission.
What happens to the status of a GSTIN after GSTR-10 is successfully accepted? +
The GST portal marks the GSTIN as permanently cancelled once GSTR-10 is successfully filed and accepted. No further periodic GST returns can or need to be filed for that registration.
Is there a final deadline beyond which an old pending GSTR-10 can no longer be filed? +
Yes. Effective July 2025, GST returns, including GSTR-10, cannot be filed after three years from their original due date. Taxpayers with long-pending accounts must file immediately to clear old records.
Regulatory Compliance Note: GSTR-10 requirements, due dates, stock reversal algorithms, late fee structures, and amnesty provisions are formulated under the direct guidance of the CGST Act and Rules and are subject to periodic changes via notifications. Readers are advised to verify current regulations on the official GST portal (www.gst.gov.in) or consult a licensed tax professional before submission.


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