Implications for criminal justice, research and evidence archives were "hastily overlooked" for financial reasons, the report argues.
The FSS analyses evidence from crime scenes in England and Wales. The report calls for its closure to be delayed.
The government said it did not accept the report's findings.
The FSS had been losing about ?2m a month and was at risk of falling into administration, which prompted the government to announce plans to close the service and sell or transfer many of its operations.
But critics argue that criminal justice - and innovation in forensic research - will suffer as a result of the closure.
They say an over-emphasis on profits could damage the quality of science, compromising forensic evidence used in court.
Continue reading the main storyWe don't agree with the committee's report. It mis-states a number of very significant points”End Quote James Brokenshire MP Crime and security minister The MPs agreed with the government's assessment that administration was undesirable, but they said the decision should never have been taken purely on commercial and legal grounds.
The committee, chaired by Labour MP Andrew Miller, argues that the current timeline for closure is unlikely to ensure an orderly transition.
It urges the government to extend the March 2012 deadline by at least six months.
"Things have to happen, otherwise we're going to run the risk of damaging justice in this country," Mr Miller told BBC News.
The report urges against breaking up the FSS' evidence archives which hold about 1.78 million case files and are vital for revisiting "cold cases".
The government wants private enterprise, which currently accounts for 40% of forensic service provision, to fill the gap left behind by the FSS.
'Stabilising strategy'But police forces have been bringing forensic work in-house in order to make cost savings. The committee viewed this practice of "in-sourcing" as an impediment to the future expansion of the private forensics market.
Mr Miller commented: "We now call on the government to stabilise the market, curbing police in-sourcing, and come up with a sensible strategy for forensic science research and provision in England and Wales."
Earlier this year, crime and security minister James Brokenshire confirmed the external forensics market was likely to contract from ?170m to ?110m by 2015. But the report raises the possibility that it could fall to the 2015 figure sooner because police cuts have yet to bite.
Responding to the MPs' inquiry, Mr Brokenshire commented: "We don't agree with the committee's report. It mis-states a number of very significant points.
"Our focus remains on providing continued high quality forensic services to the justice system now and in the future. We remain confident that our plans for winding down the FSS will deliver this."
During oral evidence to the inquiry, it emerged that the Home Office did not consult its chief scientific adviser in detail over the closure. The committee criticised the lack of consultation undertaken by the Home Office when coming to its decision.
Police labsA spokesperson for LGC, the UK's biggest private forensics provider, commented: "We're pleased that the select committee has focused on the need for stability in the market, the contribution that private companies can make and the need for high quality forensic science."
But the statement adds: "We are concerned that any delay in the wind-down of the FSS would simply destabilise the market still further. What we need is to stick to the timetable so that private providers can plan and invest with confidence."
Continue reading the main storyThere is a definite possibility that you are going to increase the number of miscarriages of justice”End Quote Professor Peter Gill University of Strathclyde Professor Peter Gill, a forensic scientist from Strathclyde University, told BBC News: "[Forensic science] needs a lot of nurturing and looking after. Otherwise, there is a definite possibility that you are going to increase the number of miscarriages of justice."
"The problem is that this is now a fait accompli... you couldn't put the FSS back together now. The real issue is what's going to happen next."
Critics of in-sourcing voice concerns about quality standards in police labs and about impartiality - pointing out that complications could arise from the police acting as both customer and provider of forensic services.
But commentators in the police cite the example of fingerprinting, which has long been operated from within forces without significant controversy.
They argue that the boundaries between in-sourcing and out-sourcing are already somewhat blurred, with police employees being responsible for managing crime scenes and for forensic submissions.
Scotland and Northern Ireland have their own publicly-funded forensic science providers: the Scottish Police Services Authority (SPSA) Forensic Services and Forensic Science Northern Ireland (FSNI).
Paul.Rincon-INTERNET@bbc.co.uk
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