GSTR-10 is the final return that must be filed by every taxpayer whose GST registration has been cancelled, whether voluntarily surrendered or compulsorily cancelled by the tax authority. It ensures that all outstanding ITC is reversed and any remaining tax liability is settled before the registration is permanently closed.
This comprehensive guide explains the GSTR-10 requirements, due date, late fees, and consequences of non-filing.
What Is GSTR-10?
GSTR-10 is the final GST return that must be filed after cancellation of GST registration.
Who Must File GSTR-10?
GSTR-10 must be filed by:
- Taxpayers who have voluntarily cancelled their registration
- Taxpayers whose registration has been cancelled by the officer (suo moto)
What GSTR-10 Contains
GSTR-10 includes:
- Details of closing stock
- ITC reversal on inputs in stock
- ITC reversal on inputs contained in finished goods
- ITC reversal on inputs contained in work-in-progress
- ITC reversal on capital goods
- Tax liability on stock
Due Date for Filing GSTR-10
Standard Due Date
GSTR-10 must be filed within three months from the date of cancellation.
Extension
In some cases, extensions may be granted, but generally, the three-month deadline is strict.
Consequences of Not Filing GSTR-10
Late Fees
Late filing attracts a penalty:
- ā¹200 per day (ā¹100 CGST + ā¹100 SGST)
- No upper limit
- Subject to a maximum of ā¹5,000 in some cases
Additional Consequences
Notices: You may receive a notice demanding compliance within 15 days.
Incomplete Closure: Failure at this stage leads to late fee, interest exposure and an incomplete closure of the GST trail.
Interest: Additional interest on delayed payment.
Legal Action: Non-filing complicates closure and may block future interactions with the GST system.
Payment of GSTR-10 Liability
Payment Through Cash Ledger
The tax liability in GSTR-10 must be paid through the electronic cash ledger only.
ITC Balance Cannot Be Used
ITC balance cannot be used to pay GSTR-10 liability.
Additional Liabilities
The GSTR-10 liability may include not just ITC reversal and late fees, but also interest carried forward from the last GSTR-3B period.
Step-by-Step Process for Filing GSTR-10
Step 1: Log in to GST Portal
Access the GST portal with your credentials.
Step 2: Navigate to Returns
Go to Services > Returns > Returns Dashboard.
Step 3: Select GSTR-10
Select GSTR-10 as the return type.
Step 4: Fill Details
Enter details of:
- Closing stock
- ITC reversal
- Tax liability
Step 5: Pay Tax Liability
Pay the tax liability through the electronic cash ledger.
Step 6: Submit and Verify
Submit the return and verify using DSC or EVC.
Practical Example
Scenario: ABC Traders' GST registration is cancelled on 1 April 2026.
Due Date: GSTR-10 must be filed by 1 July 2026 (within three months).
If ABC Traders files on 15 July 2026 (15 days late):
- Late fee: ā¹200 Ć 15 = ā¹3,000
- Additional interest on delayed payment
- Potential notices
If ABC Traders does not file at all:
- No upper limit on late fee
- Incomplete closure of GST trail
- Blocked future interactions with GST system
Common Mistakes to Avoid
1. Missing the Three-Month Deadline
The three-month deadline is strict.
2. Using ITC Balance to Pay Liability
ITC balance cannot be used for GSTR-10 liability.
3. Not Reversing ITC on All Stock
ITC reversal applies to inputs, finished goods, work-in-progress, and capital goods.
4. Ignoring Late Fee Notices
Ignoring notices leads to further penalties and legal action.
Need to file GSTR-10 after GST cancellation? Our expert team ensures timely and accurate filing to avoid penalties.
Contact Anuj Desai & Associates: š§ Email: office@anujdesaiassociates.com š Phone: 9619456656 š Website: https://anujdesaiassociates.com š LinkedIn: linkedin.com/in/ca-anuj-desai-122547230