FINAL GST RETURN

Filing of returns

Section 39(1) of Central Goods and Services Tax Act, 2017 (‘Act’ for short) provides that every registered person, other than an Input Service Distributor or a non resident taxable person or a person paying tax under section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars as may be prescribed, on or before the twentieth day of the month succeeding such calendar month or part thereof.

Cancellation of registration

Section 29 (1) of the Act provides that  the proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,––

•  the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
•  there is any change in the constitution of the business; or
•  the taxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24.

Section 29(2) provides that The proper officer may cancel the registration of a person, after giving him a reasonable opportunity of being heard, from such date, including any retrospective date, as he may deem fit, where,-

•  a registered person has contravened such provisions of the Act or the rules made there under as may be prescribed; or
• a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or
• any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or
• any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or
•  registration has been obtained by means of fraud, wilful misstatement or suppression of facts.

Section 29(3) provides that the cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made there under for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.

Section 29(5) provides that Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed.  In case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher.

Final return

Section 45 read with Rule 81 provides that every registered person whose registration has been cancelled shall furnish a final return within three months from the date of cancellation or date of order of cancellation, whichever is later, in Form GSTR – 10 through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

Form GSTR 10

Form GSTR 10 is prescribed for final return.  This form is not required to be filed by tax payers or persons who are registered as-

• Input Service Distributor;
• Persons paying tax under section 10 (composition scheme);
• Nonresident taxable person;
• Persons required to deduct tax at source under section 51; and
• Persons required collecting tax at source under section 52.

The following information is to be furnished in form GSTR – 10-

• General Information-

• GSTIN;
• Legal Name;
• Trade name, if any;
• Address for future correspondence;
• Effective date of cancellation of registration (Date of closure of business or the date from which registration is to be cancelled);
• Reference number of cancellation order;
• Date of cancellation order.

• Details of-

• inputs held in stock (where invoice is available),
• inputs contained in semi-finished or finished goods held in stock (where invoice is available),
• capital goods/plant and machinery held in stock;
• inputs held in stock or inputs as contained in semi-finished/finished goods held in stock (where invoice is not available)

on which input tax credit (already availed) is required to be reversed and paid back to Government are to be furnished as detailed below-

• Sl. No.;
• GSTIN;
• Invoice Bill of entry No. and date;
• Description of inputs held in stock, inputs contained in semi-finished or finished goods heldin stock and capital goods/plant and machinery;
• Unit Quantity Code;
• Value (As adjusted by debit/credit note);
• Input tax credit/tax payable (whichever is higher)-

• Central Tax;
• State/Union Territory Tax;
• Integrated Tax;
• Cess.

The following points are to be taken into consideration while providing details in this part-

• Where the tax invoices related to the inputs held in stock are not available, the registered person shall estimate the amount under Rule 44(3) based on prevailing market price of the goods;
• In case of capital goods/plant and machinery, the value should be the invoice value reduced by 1/60^th per month or part thereof from the date of invoice/purchase taking useful life as five years.

The details furnished for inputs held in stock or inputs as contained in semi-finished/finished goods held in stock (where invoice is not available) shall be duly certified by a practicing Chartered Accountant or Cost Accountant.  The Copy of the certificate shall be uploaded while filing the data.

• Amount of tax payable and paid-

• Sl. No.;
• Description -

• Central Tax;
• State/Union Territory Tax;
• Integrated Tax;
• Cess

• ITC reversible/Tax payable;
• Tax paid along with application for cancellation of registration;
• Balance Tax payable
• Amount paid through debit to electronic cash ledger;
• Amount paid through debit to electronic cash ledger.

• Interest payable and ;aid on account of integrated tax, central tax, State/Union Territory Tax and Cess;
• Late fee payable for Central tax and State/Union Territory tax.
• Verification by the authorized signatory declaring that the information given is true and correct to the best of my knowledge and belief and nothing has been cancelled there from.