The registration granted under GST can be canceled for specific reasons. The cancellation can either be initiated by the department on their own motion or the registered person can apply for cancellation of their registration. In case of the death of a registered person, the legal heirs can apply for cancellation. In case the registration has been canceled by the department there is a provision for revocation of the cancellation. On cancellation of the registration, the person has to file a return which is called the final return.
If a taxpayer’s GST registration is canceled or surrendered, then he/she needs to file a return in Form GSTR 10. It is known as the Final Return. Form GSTR 10 also shows details of the input tax credit (ITC) involved in closing stock (inputs and capital goods) to be reversed or paid by the taxpayer. The taxpayer can file NIL GSTR 10 also. This return in form GSTR 10 can be filed online as well as offline. It is important to note that the taxpayer cannot file Form GSTR-10 without discharging full liabilities as declared in this return.
This return has to be filed within three months of the date of cancellation or the date of order of cancellation (whichever is later).
If a taxpayer fails to file a final GST return, then a notice for not filing the final return will be sent to that registered person. The person will be given 15 days time for filing the return with all the documents required
If the taxpayer fails to respond to the tax notice or does not file the GSTR-10 return, then the tax officer would pass the final order of cancellation with the amount of GST tax payable along with interest or penalty.
Form GSTR-10 is required to be filed by every taxpayer except:
Input Service Distributor
Non-resident taxable person
Persons required to deduct TDS u/s 51
Persons paying tax u/s 10 (Composition Taxpayer)
Persons required to collect TCS u/s 52
To file the GSTR-10:
You must be a registered taxpayer under the GST with a 15-digit PAN based GSTIN who is now cancelling his/her GST registration.
The aggregate turnover of your business should be greater than 20 lakh rupees (10 lakh rupees in case of NE India).
Access the www.gst.gov.in URL. The GST Home page is displayed.
Login to the GST Portal with valid credentials.
Click the Services > Returns > Final Return command.
The following details must be provided in GSTR-10:
2. Legal Name
3. Business Name
5. Application Reference Number (ARN): Application for surrende
6. Effective Date of GST registration surrender/cancellation
7. Whether cancellation order has been passed
8. Unique ID of cancellation order
9. Date of Cancellation Order
10. Certificate of practicing chartered accountant or cost accountant, if applicable
11. Closing Stock held on date of surrender or cancellation
12. Amount of tax payable on closing stock