GST Assessment Meaning & Types: Self, Provisional, Scrutiny of Returns, Non-filers of returns, Unregistered persons, Summary assessment

GST Assessment Meaning & Types: Self, Provisional, Scrutiny of Returns, Non-filers of returns, Unregistered persons, Summary assessment

Meaning : Assessment means determination of correct tax liability.

Types:

Self Assessment – Sec 59

• Every Registered taxable person;

• Himself assesses the tax payable;

• Furnish the return for each tax period.

Provisional Assessment – Sec 60

• Unable to determine  value and/or rate of tax;

• Request may be made in writing giving proper reasons to the proper officer for payment of tax on provisional basis;

• Officer may pass an order granting permission to pay tax on provisional basis within 90 days of receipt of request;

• Execution of a bond in such form as may be prescribed, & with such surety or security as proper officer may deem fit ;

• Final assessment to take place within six months from date of communication of order granting permission; further extendable by 6 months or 4 years as the case may be;

• The balance payable or refund due to be settled along with interest.

Scrutiny of Returns – Sec 61

• Proper Officer may scrutinize the returns & other related particulars furnished by the registered person to verify the correctness; 

• Discrepancies, if any noticed to be intimated to the registered person & seek his explanation;

• On submission of acceptable explanation within 30 days: No further action required;

• Unsatisfactory explanation within 30 days: Appropriate action may be initiated.

Best Judgement Assessment – Sec 62

• Also called Assessment for Non-filers of Returns;

• Notwithstanding Section 73 or 74;

• Where, registered person fails to furnish returns, even after service of notice; 

• Proper Officer based on the information available to the best of his judgment may proceed to assess the tax liability;

• Issue an assessment order within 5 years from due date of annual return for the FY to which tax not paid relates;

• On filing of return within 30 days of receipt of assessment order:
• Best Judgment order shall be deemed to have been withdrawn; interest and late fees payable as applicable.

Assessment of Unregistered Person – Sec 63

• Notwithstanding Section 73 or Section 74;

• Taxable person fails to take registration or whose registration has been cancelled but was liable to pay tax;

• Proper Officer may assess the tax liability to the best of his judgment;

• Pass the assessment order within 5 years from the due date for filing annual return to which the tax period relates.

• No such order can be passed without giving opportunity of personal hearing;

Summary Assessment – Sec 64

• Proper Officer, on evidence showing tax liability of a person; 

• With due permission of Addl./ Joint Commissioner;

• May proceed to assess the tax liability of such person to protect the interest of revenue;

• Pass an assessment order;

• Where taxable person is not ascertainable & such liability pertains to supply of goods, person in-charge of goods shall be deemed to be taxable person;

• On application within 30 days from receipt of order, if the order is erroneous; Addl./Joint Commissioner may withdraw such order & follow procedure under Section 73 or Section 74.

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