What is GSTR-10? The GST Final Return Explained

Quick Answer: What Is GSTR-10?

GSTR-10 is the one-time final GST return that eligible registered taxpayers must file after their GST registration is cancelled or surrendered. Under Section 45 of the CGST Act, 2017, it is generally due within three months from the date of cancellation or the date of the cancellation order, whichever is later.

The late fee is generally ₹200 per day, comprising ₹100 under CGST and ₹100 under SGST/UTGST, subject to a combined maximum of ₹10,000 under the applicable provisions. The return reports relevant closing stock details and the tax or input tax credit (ITC) reversal liability arising on cancellation.

What Does GSTR-10 Mean?

When a business closes, stops making taxable supplies or no longer needs its GST registration, it may apply for cancellation. Businesses can also explore professional to understand their registration and compliance requirements.

Businesses may still need to file pending GST returns, pay outstanding dues and account for inputs and capital goods held on the effective date of cancellation.

This is where GSTR-10 becomes important. It serves as the final GST return for eligible taxpayers whose registration has been cancelled.

The legal basis for GSTR-10 is Section 45 of the CGST Act, 2017, read with Rule 81 of the CGST Rules, 2017.

For the official legal provisions, refer to the CGST Act on the CBIC website.

Who Needs to File GSTR-10?

Generally, a registered taxpayer required to file returns under Section 39 whose GST registration has been cancelled must file GSTR-10, subject to the applicable exclusions.

Registration requirements may differ for special categories of taxpayers, including casual taxable persons and non-resident taxable persons. See our guides to GST Composition Scheme Registration and for more information.

However, certain categories are excluded from filing GSTR-10, including:

• Input Service Distributors (ISDs).

• Persons required to deduct tax at source under Section 51.

• Persons required to collect tax at source under Section 52.

• Casual taxable persons.

• Non-resident taxable persons.

Businesses should confirm their registration category and the applicable legal requirements before filing.

Important: Do not assume that GSTR-10 is optional simply because the business has no closing stock or outstanding tax liability. Where the return is applicable, it must be filed even if there is nothing to report.

What Is the Due Date for GSTR-10?

The GSTR-10 due date is generally three months from the later of these two dates:

• The effective date of cancellation of GST registration.

• The date of the cancellation order.

Example of GSTR-10 Due Date Calculation

Suppose a business has the following details:

In this example, the cancellation order is dated later than the effective cancellation date. Therefore, the business must generally file GSTR-10 by 12 November 2026.

Businesses should check the actual dates mentioned in their cancellation order and calculate the deadline accordingly. Any applicable extension or special notification should also be considered.

What Is the Late Fee for GSTR-10?

Failure to file GSTR-10 by the prescribed due date can result in a late fee under Section 47 of the CGST Act and the corresponding State GST provisions.

The general statutory calculation is:

The actual amount payable may be affected by applicable notifications granting a waiver or reduction.

For example, if a return is delayed by 20 days and the general rates apply, the combined late fee would be ₹4,000, subject to the applicable statutory cap and any notified relief.

Businesses should verify the late fee displayed on the GST Portal before making payment.

What Happens If You Do Not File GSTR-10?

Ignoring GSTR-10 after GST registration cancellation can lead to further compliance issues.

1. Notice to File the Return

Under Section 46 of the CGST Act, the proper officer may issue a notice in Form GSTR-3A requiring the taxpayer to file the outstanding return within 15 days.

2. Best-Judgment Assessment

If the taxpayer does not file the return even after receiving the notice, the officer may proceed with a best-judgment assessment under Section 62, subject to the applicable legal conditions.

3. Outstanding Tax Liabilities Remain

Cancellation does not automatically eliminate unpaid GST, interest, late fees, or other outstanding liabilities. Businesses should review pending returns, reconcile tax dues, and understand their ongoing obligations under GST compliance requirements for Indian enterprises before completing the GST registration closure process.

4. Difficulty Completing Final Compliance

Unfiled returns and unresolved liabilities can complicate the closure of GST compliance records. Businesses should review their outstanding returns and payments before treating the cancellation process as complete.

What Details Must Be Reported in GSTR-10?

GSTR-10 requires details relating to the taxpayer's registration and relevant assets or stock held at the time of cancellation.

The information generally includes:

• GSTIN, legal name and trade name.

• ARN and details of the cancellation order, where applicable.

• Effective date of cancellation and date of the cancellation order.

• Closing stock of inputs held in stock.

• Inputs contained in semi-finished and finished goods.

• Relevant capital goods and their associated ITC details.

• Tax payable or ITC reversal liability, where applicable.

• Relevant tax payment details, interest and late fee.

Before filing, reconcile these details with your purchase invoices, inventory records, fixed asset register and GST returns.

Accurate records help reduce the risk of reporting incorrect stock values or calculating an incorrect ITC reversal amount.

Understanding ITC Reversal on Closing Stock

One of the important parts of GSTR-10 is determining the tax liability associated with inputs and capital goods held on the effective date of cancellation.

Under Section 29(5) of the CGST Act, a taxpayer may be required to pay an amount equivalent to the relevant ITC relating to inputs held in stock, inputs contained in semi-finished or finished goods, and capital goods or plant and machinery on the date immediately preceding the cancellation date, as applicable.

Rule 44 of the CGST Rules prescribes how the relevant ITC amount is determined.

• ITC on Inputs and Stock

For inputs held in stock and inputs contained in semi-finished or finished goods, the relevant ITC is generally determined using the corresponding purchase invoices.

If the original invoices are unavailable, the applicable rules provide for determining the amount using the prescribed method, which may involve prevailing market prices.

• ITC on Capital Goods

For capital goods, the calculation follows the applicable statutory method and considers the relevant ITC and the prescribed reduction for the period since the invoice date.

The calculation should be performed according to Rule 44 and the circumstances of the cancellation. Businesses should not rely on a rough estimate where the capital goods value or the remaining ITC is significant.

Example: ITC Reversal on Machinery

Suppose a business purchased machinery in January 2025 and claimed ₹90,000 as ITC. Its GST registration is cancelled in October 2026.

The amount payable cannot be determined from the original ITC figure alone. The business must apply the relevant Rule 44 calculation and verify the applicable treatment of the machinery, invoice date and cancellation date.

This calculation should be completed before filing GSTR-10 so that the correct liability is reported and paid.

How to File GSTR-10 Online: Step-by-Step Guide

Follow these steps to prepare and file the GST final return.

Step 1: Clear Pending GST Returns

Review and file the applicable pending GSTR-1, GSTR-3B and other periodic returns up to the relevant cancellation period, as required.

Also reconcile any outstanding tax, interest and late fees. If you need help reviewing your GST records and outstanding compliance requirements, explore our GST.

Step 2: Log In to the GST Portal

Visit the official GST Portal and log in using your registered credentials.

Navigate to Services → Returns → Final Return. The exact options displayed may depend on your registration and the current portal interface.

Step 3: Enter the Cancellation Details

Check the effective cancellation date and the date of the cancellation order. Make sure these details match the official records because they determine the filing deadline.

Step 4: Enter Closing Stock and ITC Details

Prepare the required stock information, purchase invoices, capital goods records and ITC reversal calculations.

Enter the relevant details in the applicable sections of GSTR-10.

Step 5: Review and Pay the Liability

Check the tax payable, any applicable interest and the late fee. Pay the outstanding amount using the permitted payment method.

Compare the figures with your working papers before proceeding.

Step 6: Preview and File the Return

Preview the completed return and carefully check the dates, stock values, tax calculations and payment details.

Submit and file the return using the applicable verification method, such as DSC or EVC, depending on the taxpayer's requirements.

Important: Review the return carefully before filing because GSTR-10 generally cannot be revised after submission. Correcting an error may require a separate legal or procedural remedy.

Common Mistakes to Avoid While Filing GSTR-10

Businesses should watch out for these frequent errors:

• Missing the three-month filing deadline.

• Assuming a nil GSTR-10 is optional.

• Filing the final return without reviewing pending periodic returns.

• Using the cancellation application date instead of the relevant effective cancellation date or order date.

• Incorrectly calculating ITC reversal on inputs or capital goods.

• Ignoring outstanding tax, interest or late fees.

• Entering incorrect closing stock values.

• Filing without checking the return preview and supporting documents.

A final reconciliation of accounting records and GST returns can help prevent avoidable errors.

Frequently Asked Questions About GSTR-10

Q1. Is GSTR-10 mandatory if there is no closing stock?

Ans: Yes, if GSTR-10 applies to your registration, it must generally be filed even when there is no closing stock or outstanding liability. A nil return does not automatically remove the filing requirement.

Q2. What is the due date for GSTR-10?

Ans: GSTR-10 is generally due within three months from the effective cancellation date or the cancellation order date, whichever is later. Check the dates in your cancellation order before calculating the deadline.

Q3. What is the late fee for GSTR-10?

Ans: The general combined late fee is ₹200 per day, comprising ₹100 CGST and ₹100 SGST/UTGST, subject to a maximum of ₹10,000. Applicable government notifications may provide relief.

Q4. Does GSTR-10 replace GSTR-9?

Ans: No. GSTR-9 is an annual return for taxpayers required to file it, while GSTR-10 is the final return following cancellation of GST registration. One does not automatically replace the other.

Q5. Can I revoke GST cancellation instead of filing GSTR-10?

Ans: Eligible taxpayers may apply for revocation of cancellation within the prescribed period and subject to the applicable conditions. If the cancellation remains effective and GSTR-10 applies, the final return obligation generally remains.

Closing Your GST Registration? Get Your GSTR-10 Filing Right

Cancelling a GST registration involves more than submitting a cancellation application. Pending returns, closing stock, ITC reversal and outstanding dues must also be reviewed to complete the process correctly.

Finaccle Advisory helps businesses review GST records, reconcile outstanding liabilities and understand the requirements for final GST return filing.

Our team can help you identify pending compliance tasks, review stock and capital goods records, and prepare a practical checklist for completing your GST closure process.

Avoid last-minute filing pressure. Get your GST records reviewed before your GSTR-10 deadline.

Explore GST services from Finaccle Advisory or visit Finaccle's website to discuss your business compliance requirements.