What Happens If You Don’t File GSTR-10 on Time?

Many business owners think that once their GST registration is cancelled, the work is over. But that’s far from the truth. If you’re a registered taxpayer whose GST number has been cancelled or surrendered, you must file GSTR-10, the Final Return. Missing this step can lead to serious penalties, interest, and even legal notices from the department.

What is GSTR-10?

GSTR-10 is a final return that must be filed by a registered taxpayer whose GSTIN has been cancelled or surrendered. It is not a periodic return, but a one-time return that shows the final stock held and tax liability at the time of cancellation.

Who Needs to File GSTR-10?

• Businesses who voluntarily cancelled their GST registration
• Taxpayers whose GST registration was cancelled by the department
• Individuals who stopped business operations

Note: It does not apply to taxpayers under composition scheme.

What is the Due Date?

GSTR-10 must be filed within 3 months from the date of:

• Cancellation order, or
• Cancellation effective date (whichever is later)

Consequences of Not Filing GSTR-10 on Time

1. Late Fee & Penalties

• ₹100 per day (CGST) + ₹100 per day (SGST)
• Up to a maximum of ₹10,000

2. Interest on Outstanding Liability

• Interest is charged at 18% p.a. if any tax remains unpaid on the closing stock.

3. GST Notices (Form GSTR-3A)

• You may receive a notice for non-filing.
• Continued non-compliance can result in summary assessment under Section 62.

4. Blocked PAN or Future Registrations

• GSTIN linked to your PAN may be blocked from new registration until final returns are filed.

5. Legal Proceedings

• Under Section 122 of the CGST Act, failure to file can lead to penalty proceedings and prosecution in severe cases.

Real Example

A trader in Hyderabad failed to file GSTR-10 for 6 months. He was slapped with a late fee of ₹10,000, received a notice, and couldn’t register a new business until the issue was resolved.