Section 45 – Final Return
Section 45 of CGST Act, 2017 – Final Return
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Scope and Purpose of Section 45
Section 45 provides for filing of a final return by a registered person whose GST registration has been cancelled or surrendered.
The purpose of final return is to:
- Bring closure to GST compliance
- Declare final tax liability
- Enable recovery of dues, if any
2. Statutory Provision – Section 45
Section 45:
Every registered person who is required to furnish a return
under sub-section (1) of section 39
and whose registration has been cancelled
shall furnish a final return
within three months
of the date of cancellation or the date of order of cancellation,
whichever is later,
in such form and manner as may be prescribed.
3. Who Is Required to File Final Return?
Final return is required to be filed by:
- Regular taxpayers whose registration is cancelled
- Taxpayers whose registration is cancelled suo motu by department
- Taxpayers who voluntarily apply for cancellation
Final return is mandatory irrespective of whether any business activity exists after cancellation.
4. Who Is NOT Required to File Final Return?
Final return under Section 45 is not required to be filed by:
- Input Service Distributor (ISD)
- Non-resident taxable person
- Persons paying tax under composition scheme
These categories are specifically excluded.
5. Time Limit for Filing Final Return
Final return must be furnished:
- Within 3 months from:
- Date of cancellation of registration, or
- Date of cancellation order
Whichever is later.
Delay in filing attracts:
- Late fee under Section 47
- Possible departmental notices
6. Form Prescribed for Final Return
The final return is required to be filed in:
- FORM GSTR-10
This form captures:
- Stock details on date of cancellation
- Tax payable on closing stock
- Any outstanding liabilities
Relevant Rule:
7. Linkage with Section 29(5) – ITC Reversal
Before filing final return, the taxpayer must comply with:
-
Section 29(5)
– Reversal of ITC on:
- Inputs
- Semi-finished goods
- Finished goods
- Capital goods
The final return reflects the impact of such reversal.
8. Effect of Revocation of Cancellation
If cancellation of registration is:
- Revoked under Section 30
then:
- Final return under Section 45 is not required
Thus, final return applies only where cancellation remains effective.
9. Common Practical Issues
- Assuming final return is optional
- Missing the 3-month time limit
- Incorrect stock valuation
- Ignoring ITC reversal impact
These issues frequently result in notices even after business closure.
10. Related Provisions
- Section 29 – Cancellation of registration
- Section 30 – Revocation of cancellation
- Section 47 – Late fee
11. Professional Tip
Cancellation of registration does not end GST responsibility. Filing of final return under Section 45 is mandatory to legally close your GST account.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Future amendments or judicial pronouncements may require revision.
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