The closure of a company is not complete when the ROC strikes off its name or the NCLT sanctions its winding up. The company must also cancel its GST registration and file the final return in Form GSTR-10. The GST compliance is a separate obligation, and a failure to file the final return exposes the company and its directors to penalty and to the continuation of the GST liability.
The Cancellation Sequence
The company must apply for cancellation of its GST registration in Form GST REG-16 within thirty days of the occurrence of the event that requires cancellation—the strike-off, the winding-up order, or the cessation of business. The GST officer issues a cancellation order in Form GST REG-19. The final return in Form GSTR-10 must be filed within three months of the date of the cancellation order or the date of the cancellation application, whichever is later.
The GSTR-10 reconciles the closing position: the closing stock, the capital goods held on the cancellation date, the input tax credit reversal, and the tax payable on the stock and capital goods. The return is not a mere formality; it is the final computation of the company's GST liability.
The Penalty for Non-Compliance
The late filing of GSTR-10 attracts a late fee of ₹200 per day (₹100 CGST and ₹100 SGST), subject to a maximum of ₹10,000. The GST officer may also impose a penalty for the failure to file the return. The directors of the company are not personally liable for the GST dues of the company, but they may be prosecuted if the company's GST liability is not discharged.
The Coordination with the ROC
The ROC strike-off and the GST cancellation are independent processes, but they must be coordinated. A company that has been struck off without cancelling its GST registration remains on the GST records, and the GST officer may issue notices to the company's registered address. The directors should ensure that the GST cancellation is completed before the company is struck off, or immediately thereafter.
The GSTR-10 is the final GST compliance obligation of a closing company. A company that neglects it may find that its closure is incomplete and that its directors are exposed to penalty.
Call to Action
Anuj Desai & Associates advises companies on the GST closure compliance—from the GST REG-16 application and the GSTR-10 final return to the ITC reversal and the coordination with the ROC strike-off. If your company is closing, we can help you complete the GST formalities.
📧 office@anujdesaiassociates.com
📞 9619456656
🌐 https://anujdesaiassociates.com
🔗 linkedin.com/in/ca-anuj-desai-122547230
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