Assessment Under GST Law
Assessment Under GST Law :- According to Section 2(11) of the CGST Act 2017: – defined the assessment in GST Law as the determination of tax liability under this act and includes self-assessment, reassessment provisional assessment , summary assessment and best judgement assessment. On a broader sense, ‘’assessment is all about the estimation of tax liability of a registered person i.e. amount of tax payable on value of goods or services or both supplied by him
The different types of assessment under GST Law are as under:
- Section 59 of CGST Act – Self assessment of taxes payable
- Section 60 of CGST Act – Provisional assessment (Provisional Assessment Order)
- Section 61 of CGST Act – Scrutiny of tax returns filed by registered taxable persons
- Section 62 of CGST Act – Assessment Non-Filers of Returns (Best Judgement Assessment)
- Section 63 of CGST Act – Assessment of unregistered persons
- Section 64 of CGST Act – Summary assessment in special cases
Self-assessment of taxes payable –
According to Section 59 of CGST Act Every registered person shall self-assess the taxes payable under this Act and furnish a return for each tax period as specified under section 39 of this act. This mean GST Department continues to promote self-assessment just like the Excise, VAT and Service Tax Etc.
Provisional assessment –
According to Section 60 of CGST Act Provisional assessment can be conducted for a GST taxable person when the taxpayer is unable to determine the value of goods/ service or both or determine the rate of GST applicable thereto.
Sub Section (1) Subject to the provisions of sub-section (2), where the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, he may request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper officer shall pass an order, within a period not later than 90 (Ninety) days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him.
(2) The payment of GST on provisional basis may be allowed, if the taxable person executes a bond in such form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the GST taxable person for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed.
(3) The proper GST officer shall, within a period not exceeding 6 months from the date of the communication of the order issued under sub-section (1), pass the final GST assessment order after taking into account such information as may be required for finalizing the GST assessment:
Provided that the period specified in this sub-section may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the Joint Commissioner or Additional Commissioner of GST for a further period not exceeding six months and by the Commissioner for such further period not exceeding four years)
(4) The GST registered person shall be liable to pay interest on any GST payable on the supply of goods or services or both under provisional assessment but not paid on the GST due date specified under sub-section (7) of section 39 or the rules made there under, at the rate specified under sub-section (1) of section 50 of this act, from the first day after the due date of payment of GST in respect of the said supply of goods or services or both till the date of actual payment, whether such amount is paid before or after the issuance of order for final GST Assessment.
(5) Where the GST registered person is entitled to a refund consequent to the order of final assessment under sub-section (3), subject to the provisions of sub-section (8) of section 54 of this act, interest shall be paid on such refund as provided in section 56 of this act.
Scrutiny of tax returns filed by registered taxable persons :-
According to Section 61 of CGST Act Sub section (1) The proper officer may scrutinize the return and related particulars furnished by the GST registered person to verify the correctness of the GST return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto.
(2) In case the explanation is found acceptable, the GST registered person shall be informed accordingly and no further action shall be taken in this regard.
(3) In case no satisfactory explanation is furnished within a period of 30 (thirty) days of being informed by the proper officer or such further period as may be permitted by him or where the GST registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, the proper GST officer may initiate appropriate action including those under section 65 or section 66 or section 67 of this act, or proceed to determine the tax and other dues under section 73 or 74 of this act.
Assessment Non-Filers of Returns:- (Best Judgement Assessment)
According to Section 62 of CGST Act Sub section (1) Notwithstanding anything to the contrary contained in section 73 or section 74, where a registered person fails to furnish the return under section 39 or section 45 of this act, even after the service of a notice under section 46, the proper officer may proceed to assess the GST liability of the said GST person to the best of his judgement taking into account all the relevant material which is available or which he has gathered and issue an assessment order within a period of (five) 5 years from the date specified under section 44 of this act for furnishing of the annual return for the financial year to which the tax not paid relates.
(2) Where the GST registered person furnishes a valid return within 30 (thirty) days of the service of the gst assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of section 50 or for payment of late fee under section 47 of this act shall continue.
Section 63 of CGST Act – Assessment of unregistered persons
According to Section 62 of CGST Act Notwithstanding anything to the contrary contained in section 73 or section 74 of this act, where a taxable person fails to obtain registration even though liable to do so or whose registration has been cancelled under sub-section (2) of section 29 but who was liable to pay tax, the proper officer may proceed to assess the GST tax liability of such taxable person to the best of his judgment for the relevant tax periods and issue an assessment order within a period of five years from the date specified under section 44 of this act for furnishing of the annual return for the
F.Y to which the tax not paid relates: Provided that no such GST assessment order shall be passed without giving the person an opportunity of being heard.
Summary assessment in special cases:-
According to Section 64 of CGST Act sub section (1) The proper officer may, on any evidence showing a tax liability of a person coming to his notice, with the previous permission of Add Commissioner or Joint Commissioner of GST, proceed to assess the tax liability of such person to protect the interest of revenue and issue an GST assessment order, if he has sufficient grounds to believe that any delay in doing so may adversely affect the interest of revenue: Provided that where the taxable person to whom the liability pertains is not ascertainable and such GST liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the GST taxable person liable to be assessed and liable to pay tax and any other amount due under this section.
- (2) On an application made by the GST taxable person within (thirty) 30 days from the date of receipt of order passed under sub-section (1) or on his own motion, if the Add. Commissioner or Joint Commissioner considers of GST that such order is erroneous, he may withdraw such order and follow the procedure laid down in section 73 or section 74 of this act.
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