Filing of Final Return (GSTR10) by GST dealers whose registration is cancelled or surrendered

Filing of Final Return (GSTR 10) by GST dealers whose registration is cancelled or surrendered

As we know that GST has been implemented w.e.f 01.07.2017 in India and various exemption limit for registration has been provided from time to time.

For example: at the time of implementation of GST the minimum turnover criteria was Rs 20 lacs (with exception for hilly states at Rs 10 lacs). In Feb 19 some of the states and Uts have increased their registration limit from Rs 10 lacs to 20 lacs and w.e.f Apr 19 the registration limit has further increased from Rs 20 lacs to Rs 40 lacs for those who are involved in supply of goods only (except for some hilly states)

The registration requirement for various states and UT (union territories) is given below:

It may be noted that above turnover limit has to be determined at all India level based on PAN of the person and includes exempted turnover as well (sale of exempted product like Petrol, Diesel, Alcohol for human consumption etc).

Apart from the above turnover criteria compulsory registration is also applicable for certain specified categories of dealers (like those who are required to pay GST under RCM, person making inter-state supply, non-resident taxable person etc) as well as a person can go for voluntary registration.

At the time of implementation of GST many people were not sure about their registration requirement and some of the companies denied to make supply to their customers in the absence of GST number. As a result they have taken registration under GST and has been complying with the various tax payment and return requirement from time to time.

Now after the GST have become a settled law and now the exemption limit for registration has also been increased to Rs 40 lacs (in case of goods).

So those who have taken registration under GST earlier and are not compulsorily required to be registered, may not want to continue to be registered (because of return filing cost and other unnecessary compliance requirement) and opt to file request for cancellation of their registration and after proper verification by competent authority their registration is cancelled.

Most of the dealer make a mistake that they assume that since their registration certificate has been cancelled so they are not required to do any compliance wrt GST.

However the same is not true.

Even after the cancellation of registration certificate of the erstwhile dealers GST ID and password remain valid and they are basically required to do following compliance:

• To file all the pending GSTR3B, GSTR1, CMP08 (for composition dealer) and other monthly / quarterly return
• To file Annual Return till the financial year in which his registration certificate is cancelled.
• To file GSTR-10 (Final Return) in which he is required to give details of stock held on the date of closure and other relevant details. This return need to be filed within 3 months from the date of effective date of cancellation or date of cancellation order, whichever is later

Most dealer fails to file GSTR-10 (Final Return) and as a result penalties becomes applicable.

However GSTR-10 are not required to be filed by following categories of person:

(i) Input Service Distributor

(ii) Non-resident taxable persons

(iii) Persons required to deduct tax at source (TDS) under section 51

(iv) Persons paying tax under section 10 (Composition Taxpayer)

(v) Persons required to collect tax at source (TCS) under section 52

Hope users will find this article useful.