☐ Has cancellation event been identified? ☐ Has 3-month window been computed? ☐ Has closing stock been compiled? ☐ Have capital goods + plant-and-machinery been compiled? ☐ Has ITC on closing stock been computed? ☐ Has output tax on…
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☐ Has cancellation event been identified? ☐ Has 3-month window been computed? ☐ Has closing stock been compiled? ☐ Have capital goods + plant-and-machinery been compiled? ☐ Has ITC on closing stock been computed? ☐ Has output tax on…
Section 45 final return compliance — checklist (19 items)
Section 45 final return compliance — checklist (19 items)
☐ Has cancellation event been identified?
☐ Has 3-month window been computed?
☐ Has closing stock been compiled?
☐ Have capital goods + plant-and-machinery been compiled?
☐ Has ITC on closing stock been computed?
☐ Has output tax on closing stock been computed?
☐ Has Rule 44 capital-goods reduction been applied?
☐ Has sub-s. (5) of s. 29 higher computation been determined?
☐ Has GSTR-10 been filed within 3-month window?
☐ Have tax + interest + late fee been paid?
☐ For revocation possibility, has evaluation been done?
☐ Has records retention under s. 36 been maintained?
☐ Has Bharti Airtel substance-over-form discipline been applied?
☐ Has Mafatlal procedural-fairness framework been observed?
☐ Has Mohit Minerals constitutional framework been applied?
☐ Has Vatika prospective-operation been applied?
☐ Has Whirlpool framework been considered for disputes?
☐ Has documentary trail been preserved?
☐ Has the file been reviewed for audit-defensibility?
Worked examples — five live scenarios
Example 1 — Voluntary cancellation GSTR-10
Facts: Business closure. Cancellation effective 1-Sep-2025. Order date 5-Sep-2025. Closing stock Rs. 10 lakh + ITC Rs. 1.8 lakh. Output tax Rs. 2.2 lakh.
Analysis: 3-month window from later date (5-Sep-2025) — file by 5-Dec-2025. Sub-s. (5) of s. 29 — higher Rs. 2.2 lakh. Pay through GSTR-10. Standard framework.
Result: Compliant GSTR-10.
Example 2 — Officer-initiated cancellation
Facts: Officer-initiated cancellation order 15-Oct-2025 (effective 1-Jul-2025 retrospective). Closing stock as of 1-Jul-2025.
Analysis: 3-month window from later (15-Oct-2025) — file by 15-Jan-2026. Closing stock computation as of cancellation effective date. Sub-s. (5) framework. Practitioner advice — evaluate s. 30 revocation before filing if applicable.
Result: Retrospective cancellation GSTR-10 framework.
Example 3 — Late filing late fee
Facts: GSTR-10 filing delayed by 60 days.
Analysis: Late fee under s. 47 — Rs. 200/day × 60 = Rs. 12,000 (combined CGST + SGST). Late fee discipline + s. 50 interest if applicable.
Result: Late fee cascade.
Example 4 — Revocation possibility
Facts: Officer-initiated cancellation. Taxpayer files revocation under s. 30 within 30 days.
Analysis: If revocation granted, registration restored. GSTR-10 obligation unwound. Practitioner advice — pursue revocation before GSTR-10 filing where applicable.
Result: Revocation framework may obviate GSTR-10.
Example 5 — Capital goods Rule 44 reduction
Facts: Capital good Rs. 10 lakh + ITC Rs. 1.8 lakh, bought 4 quarters before cancellation.
Analysis: Rule 44 — 5% × 4 quarters = 20% reduction. Effective ITC for sub-s. (5) computation = Rs. 1.44 lakh (80% of Rs. 1.8 lakh). Higher of this OR output tax on disposal value.
Result: Rule 44 framework operative.
Planning and litigation strategy
Litigation defence
Cross-references