Analysis
Every registered person whose registration is cancelled (suo moto or on an application made by applicant i.e., voluntary cancellation) shall file a final return in FORM GSTR-10 through the common portal within 3 months from the date of cancellation (in case of voluntary cancellation) or date of order of cancellation (forceful cancellation by authority), whichever is later.
Details, which shall be made available in the Final return to be furnished in Form GSTR 10, is available in CGST Rules, 2017 as latest amended on 18,04.2018 vide Notification No. 21/2018
– Central Tax dated 18.04.2018.
Most important information, is that this return would require a person whose registration is cancelled, to furnish, is as follows:
a. The details of value (after adjustment of credit/debit notes) and quantity of inputs held in stock, inputs contained in semi-finished or finished goods held in stock and capital goods /plant and machinery.
b. The details of credit availed / reversed as per the provisions of GST law and tax payable if any.
c. Details of amount to be payable on cancellation of registration through Electronic Cash Ledger/ Electronic Credit Ledger.
d. Details of interest / late fee if any payable and paid details.
e. State-wise summary of supplies, rate-wise, should be uploaded in Table 7 of the Form GSTR-1.
Further, it is also important to take care of the following things while furnishing final return in Form GSTR 10.
(a) While providing details of inputs held in stock, inputs contained in semi-finished goods or finished goods as the case may be:
Where the tax invoices related to the inputs held in stock or inputs contained in semi-finished or finished goods held in stock are not available, the registered person shall estimate the value of inputs available in stock (in all three forms) for the purpose of reversal, is based on the on prevailing market price of the goods Note: The details of stock for which invoices are not available, shall be certified by a Chartered Accountant or Cost Accountant and needs to be furnished with final return filed in Form GSTR 10.
In case of capital goods / plant and machinery, the value for the purpose of arrivingt the value of input tax to be reversed or paid, should be the invoice value reduced by 1/60th value per month or part thereof, from the date of invoice / purchase taking useful life as five years. For example: if the asset value was say ` 5 Lac and input tax credit availed on the same was ` 90,000 (at 18%), the said asset was put to use for say 48 months as on the date of cancellation of registration, then in such case amount of reversal would be calculated as follows:
Amount of input tax credit eligible, till the date of cancellation – ` 90,000 / 60 * 48 = ` 72,000/-
Amount of input tax credit to be reversed / paid in cash – ` 90,000 / 60 * 12 = ` 18,000