1. GSTR-10 – Final Return for Cancellation/Surrender of GST Registration:

This is the primary meaning of “final return” in the context of GST. Any registered taxable person who has opted for the cancellation or surrender of their GST registration must file a GSTR-10 return. This return captures a summary of all your GST transactions (outward and inward supplies) for the period up to the cancellation date.

Key points about GSTR-10:

• Who files it: Any registered person whose GST registration is cancelled or surrendered.
• Form: GSTR-10.
• Due date: Within 3 months from the date of cancellation or order of cancellation, whichever is later.
• Details included: All outward and inward supplies for the period up to cancellation, tax liabilities, HSN code-wise summary, details of taxes paid, etc.
• Consequences of non-filing: Late fees and potential legal action.

2. GSTR-9 – Annual Return:

While not technically called a “final return,” the GSTR-9 annual return can also act as a final report of your GST transactions if you’re closing your business or stopping operations permanently. You still need to file the annual return for the relevant financial year before deregistering.

Key points about GSTR-9:

• Who files it: All registered taxable persons.
• Form: GSTR-9.
• Due date: 31st December of the year following the relevant financial year.
• Details included: Comprehensive summary of all GST transactions for the entire financial year (including those already reported in monthly/quarterly returns), tax liabilities, details of taxes paid, etc.
• Consequences of non-filing: Late fees and potential legal action.

So, to clarify:

• If you’re cancelling or surrendering your GST registration, file GSTR-10 within 3 months of cancellation.
• If you’re closing your business permanently, file GSTR-9 for the relevant financial year and then deregister.

                                   EXAMPLE

Unfortunately, providing a complete example of a final return (GSTR-10) under GST Act 2017 requires specific details about the taxpayer and the state they are registered in. Different states have varying tax rates and forms, making it impossible to give a generic example.

However, I can guide you through the general format and key information needed to file a GSTR-10 in any state:

Part A: General Information

• GSTIN of the taxpayer filing the return
• State in which the taxpayer is registered
• Period of cancellation/surrender of registration (date range)
• Reason for filing the final return (cancellation or surrender)

Part B: Details of Outward Supplies

• List of all outward supplies made during the period covered by the return
• For each supply, provide details like:
  • GSTIN of the recipient
  • Date of invoice
  • Invoice number
  • HSN/SAC code of the goods or services supplied
  • Taxable value of the supply
  • Rate of CGST, SGST, IGST (as applicable)
  • Amount of CGST, SGST, IGST paid

Part C: Details of Inward Supplies

• List of all inward supplies received during the period covered by the return
• For each supply, provide details like:
  • GSTIN of the supplier
  • Date of invoice
  • Invoice number
  • HSN/SAC code of the goods or services received
  • Taxable value of the supply
  • Rate of CGST, SGST, IGST (as applicable)
  • Amount of CGST, SGST, IGST paid
  • Input tax credit claimed

Part D: Payment of Tax

• Total amount of CGST, SGST, IGST payable for the period
• Details of any tax already paid through challan or electronic credit ledger
• Net tax liability remaining

Part E: Declaration

• Declaration by the authorized signatory confirming the correctness and completeness of the information provided

Additional Notes:

• You can download the specific GSTR-10 form for your state from the GST portal.
• The portal also provides detailed instructions and guidelines for filing the return.
• Consider seeking professional assistance from a chartered accountant or tax advisor if you require help with filing your final return.

                       FAQ QUESTIONS

Q: Who was required to file the final return?

A: All registered taxpayers under GST, except those who opted for composition scheme, were required to file the final return.

Q: What was the deadline for filing the final return?

A: The original deadline for filing the final return was December 31, 2019. However, it was extended several times due to various reasons. The final deadline for filing the final return was June 30, 2020.

Q: What documents were required for filing the final return?

A: The following documents were required for filing the final return:

• GST registration certificate
• Audited accounts for the financial year 2017-18
• GST returns filed for all quarters of the financial year 2017-18
• Details of closing stock as on March 31, 2018
• Details of any credit notes issued after March 31, 2018

Q: What was the format of the final return?

A: The final return was filed online through the GST portal in Form GSTR-9.

Q: What happened if someone missed the deadline for filing the final return?

A: Late filing of the final return attracted a late fee of Rs.50 per day for the delay. Additionally, the taxpayer might have faced difficulty in availing certain GST benefits in the future.

                                CASE LAWS

Provisions under GST Act, 2017:

• Section 46: Allows cancellation of GST registration under certain conditions. If a registered taxpayer ceases business operations permanently, they can file a final return in Form GSTR-9C along with proof of closure.
• Section 122: Grants powers to GST officers to assess tax liability from registered persons who fail to furnish returns or where returns are deemed inaccurate. Such assessments become final after due process.
• Section 129: Deals with self-assessment of tax liability by taxpayers and mentions filing returns as per prescribed forms. The information in these returns, once accepted by the tax authorities, forms the basis for tax payment and potential future assessments.

Case Laws relevant to finalization:

• M/s Suncraft Energy Pvt Ltd vs. Assistant Commissioner (Calcutta High Court): Ruled that buyers who comply with Section 16(2) of the CGST Act and SGST Act are not responsible for discrepancies in GSTR-2A and 3B due to the seller’s default. This implies finality of ITC claims for buyers fulfilling their due diligence.
• Commissioner of GST & Central Excise, Chennai vs. M/s. Excel Crop Care Ltd. (Madras High Court): Upheld the department’s power to assess tax liability under Section 122 if returns are not filed or deemed inaccurate. This emphasizes the possibility of finalizing tax liability through department assessments.

Please note: This is not an exhaustive list, and the applicability of these provisions and judgments depends on the specific circumstances of each case.