Ensuring a Clean Exit and Legal Compliance for Your Business
Navigating the closure of a business is as critical as its inauguration. At GST Suvidha Center (Branch Code: WB 093), managed by Purna Chandra Achary, we understand that the “Final Return” is the last hurdle between a business owner and a clean legal slate.
Under the GST regime, simply stopping operations is not enough. The law requires a formal surrender of the GSTIN and a subsequent filing of Form GSTR-10. Failure to do so can result in mounting penalties, legal notices, and roadblocks to starting any future business ventures.
1. What is GSTR-10?
GSTR-10 is known as the Final Return. It is a mandatory filing for taxable persons whose GST registration has been cancelled or surrendered.
It is important to distinguish GSTR-10 from GSTR-9 (Annual Return). While the Annual Return is a yearly summary for active businesses, the Final Return is a one-time filing triggered only by the termination of the GST registration.
Why is it Necessary?
The primary intent of GSTR-10 is to ensure that the taxpayer pays any tax liability arising from the stock of goods (inputs or capital goods) held on the day immediately preceding the date of cancellation. Since you claimed Input Tax Credit (ITC) on these items when you purchased them for business use, the government requires that credit to be “reversed” or paid back if the goods are not sold before the business closes.
2. Who Must File GSTR-10?
Every registered person whose registration has been cancelled or surrendered must file this return. This includes:
- Voluntary Surrender: Business owners closing their shop or firm.
- Departmental Cancellation: If the GST officer cancels the registration due to non-compliance or inactivity.
- Death of Proprietor: In the case of a sole proprietorship.
- Change in Constitution: If a firm converts from a partnership to a private limited company, the old GSTIN must be cancelled and GSTR-10 filed.
Exceptions: The following entities are not required to file GSTR-10:
- Input Service Distributors (ISD)
- Non-resident taxable persons
- Persons paying tax under Section 10 (Composition Scheme)
- Persons liable to deduct tax at source (TDS) or collect tax at source (TCS)
3. The Timeline: When to File?
According to the GST law, GSTR-10 must be filed within three months of the later of the following two dates:
- The date of the Cancellation Order.
- The actual Date of Cancellation specified in the order.
- GSTIN: Your unique identification number.
- Legal Name & Trade Name: Automatically populated.
- Address: Your registered place of business.
- Inputs held in stock: Raw materials or finished goods currently in your warehouse.
- Inputs contained in semi-finished or finished goods: Work-in-progress items.
- Capital Goods / Plant & Machinery: This includes computers, machinery, and equipment for which ITC was previously claimed.
- Late Fees: Currently, the law imposes a late fee of ₹200 per day (₹100 CGST + ₹100 SGST), subject to a maximum cap.
- Notice in Form GSTR-3A: If you fail to file, the system issues a notice. If you still don’t comply within 15 days of the notice, the tax officer may pass an assessment order (Best Judgment Assessment), estimating your tax liability and adding high interest and penalties.
- Blocking of Future GSTINs: The PAN associated with a defaulted GSTR-10 may face difficulties in obtaining new registrations in the future.
- Expert Bookkeeping: We analyze your purchase history to determine exactly how much tax needs to be reversed on your remaining stock.
- CA-Backed Verification: Our financial services include CA certification and audits where necessary, ensuring your final return is bulletproof against future department scrutiny.
- Nominal Rates: We provide premium professional services at “Jan Suvidha” (public service) rates, specifically helping small traders who find private consultants too expensive.
- Mobile-First Approach: Use our GST Suvidha Center Mobile App to upload your documents (Stock list, Cancellation Order) and let our relationship managers handle the rest.
- Consultation: Contact us via WhatsApp (+91 9836812177) or Email.
- Document Submission: Provide your GST portal credentials and the Cancellation Order.
- Stock Valuation: Our team helps you calculate the value of the stock held on the day of cancellation.
- Draft Review: we show you the tax liability before final submission.
- Final Filing: We file GSTR-10 and provide you with the ARN (Acknowledgement Reference Number).
- Financial Services: Company and Trademark registration for your new venture.
- Banking & Loans: We are authorized Mudra Loan application providers to help you get the capital you need.
- Insurance & Health: Protecting your new business assets and your family.
- G2C Services: Digital Life Certificates, Pan Cards, and more.
- .
Disclaimer and Legal Binding
As per our professional standards, users of https://pcachary.in/ are governed by our terms and conditions. We act as a bridge between the complex GST portal and the end-user. Our office at Budge Budge, Kolkata and our headquarters in Dwarka, Delhi, ensure that every filing is done with 100% accuracy and ethical transparency.
Contact Us Today
Don’t let your business closure become a lifelong legal headache. Let the experts at GST Suvidha Center WB 093 take the burden off your shoulders.
Purna Chandra Achary Channel Partner – GST SUVIDHA CENTERS Branch Code: WB 093
Location: Budge Budge, Kolkata, West Bengal – 700137
Phone/WhatsApp: +91 9836812177
Email: connect@pcachary.in
Website: pcachary.in
“Together We Can Make Awesome Memories In One Destination.”
