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Assessment under GST

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Meaning of Assessment

As per Section 2(11), Assessment means determination of tax liability under Goods and Service tax Act (GST) Act. 

Types of Assessment under GST

• Self-assessment

• Provisional assessment

• Summary assessment

• Scrutiny Assessment

• Best judgment assessment

       -Assessment of Non-Filers of Return

       -Assessment of Unregistered Persons

Self Assessment

Every person registered under the Act shall himself assess the tax payable by him for a tax period and after such assessment he shall file the return.

Provisional Assessment

As a taxpayer has to pay tax on self-assessment basis but he may request the proper officer for paying tax on provisional basis.

Such a request can be made by the taxable person only in such cases where he is unable to determine: 

a) the value of goods or services to be supplied by him, or 

b) determine the tax rate applicable to the goods or services to be supplied by him.


 Following are the provisions applicable for Provisional Assessment:

• Provisional Assessment is governed by section 60 of CGST/SGST Act 

• Request to Proper Officer shall be made in writing giving reasons for payment of tax on provisional basis

• Tax can be paid on a provisional basis only after the proper officer has permitted it through an order passed by him 

• No tax officer can suo-moto order payment of tax on provisional basis

• He may allow payment of tax on provisional basis at a specified rate or on value

• Order shall be passed within 90 days from the date of request

• The taxable person has to execute a bond with a surety or security to pay the difference of the Final Assessed Tax and Provisional Assessed Tax.

Time Limit for Final Assessments:

The final assessment order has to be passed by the proper officer within six months from the date of the communication of the order of provisional assessment. However,the above period of six months may be extended on sufficient cause: 

a) by the Joint / Additional Commissioner for a further period not exceeding six months, and 

b) by the Commissioner for such further period as he may deem fit not exceeding fours. 

Thus, a provisional assessment can remain provisional for a maximum of five years.

Final Assessed tax > Provisionally Assessed tax:

Where the tax liability as per the final assessment is higher than in provisional assessment,the taxable person will be liable to pay interest from the date the tax was due to be paid originally till the date of actual payment.

Provisionally Assessed tax > Final Assessed tax:

Where the tax liability as per the Provisional Assessment is higher than the Final Assessment,the registered person is entitled to a refund consequent to the order of final assessment and interest shall be paid on such refund.

Summary Assessment

Summary Assessments can be initiated to protect the interest of revenue when: 

a) the proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act, and 

b) the proper officer believes that delay in passing an assessment order will adversely affect the interest of revenue. 

Such order can be passed after seeking permission from the Additional Commissioner / Joint Commissioner.

Remedy available to the taxpayer against a summary assessment order:

A taxable person against whom a summary assessment order has been passed can apply for its withdrawal to the jurisdictional Additional/Joint Commissioner within thirty days of the date of receipt of the order. If the said officer finds the order erroneous, he can withdraw it and direct the proper officer to carry out determination of tax liability in terms of section 73 or 74 of CGST/SGST Act. 

Suo moto Withdrawl of Order:

The Additional/Joint Commissioner can withdraw the summary assessment order on his own motion if he himself finds the summary assessment order to be erroneous.


Scrutiny Assessment

The proper officer may conduct scrutiny of the return and related particulars furnished by the registered person under Section 61 of the CGST Act. The Scrutiny of Returns are conducted in order to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto

Consequence of non satisfactory explaination:

If the taxable person does not provide a satisfactory explanation within 30 days of being informed (extendable by the officer concerned) or after accepting discrepancies, fails to take corrective action in the return for the month in which the discrepancy is accepted, the Proper Officer may take recourse to any of the following provisions: 

(a) Proceed to conduct audit under Section 65 of the Act; 

(b) Direct the conduct of a special audit under Section 66 which is to be conducted by a Chartered Accountant or a Cost Accountant nominated for this purpose by the Commissioner; or 

(c) Undertake procedures of inspection, search and seizure under Section 67 of the Act; or 

(d) Initiate proceeding for determination of tax and other dues under Section 73 or 74 of the Act.


Best Judgement Assessment

Best Judgement Assessment become applicable in the following situations:

• When the taxable person fails to furnish the return

• Where the taxable person fails to obtain registration even though he is liable

Assessment of Non-Filers of Return

If a taxable person fails to file the return required under law [under section 39 (monthly/quarterly), or 45 (final return)], the proper officer has to first issue a notice to the defaulting taxable person under section 46 of CGST/SGST Act requiring him to furnish the return within a period of fifteen days. If the taxable person fails to file return within the given time, the proper officer shall proceed to assess the tax liability of the return defaulter to the best of his judgement taking into account all the relevant material available with him.

Withdrawal of Best Judgement Assessment Order

The best judgment order passed by the Proper Officer under section 62 of CGST/SGST Act shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order

Assessment of Unregistered Persons

Where a person who is liable to pay tax but has failed to obtain registration, Section 63 of CGST/SGST Act provides that the proper officer can assess the tax liability and pass an order to his best judgment for the relevant tax periods.

Time Limit for passing Best Judgement Assessment Order

The time limit for passing an assessment order under section 62 or 63 is five years from the due date for furnishing the annual return.