Assessment under GST

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1. Self-Assessment under GST [Section 59 of the CGST Act, 2017]

Every registered person shall self-assess the taxes payable under this Act and furnish a return für each tax period as specified under section 39.

FAQs by CBEC on 31.3.2017

FAQ- Who Is the person responsible to make assessment of taxes payable under the Act? [Question No. 1 of FAQ’s]  

Ans. Every person registered under the Act shall himself assess the tax payable by him for a lax period and after such assessment he shall file the return required under Section 39 of CGST Act, 2017.

2. Provisional Assessment under GST  [Section 60 of the CGST Act, 2017]

Provisional Assessment is carried out in cases where a taxable person is unable to determine his value of supplies or rate of tax applicable thereto. In such case tax liability is discharged on provisional basis subject to finalization of assessment by the department. Once assessment is finalized, the taxable person becomes liable to pay the difference or, as the case may be, gets entitled for refund. Concept of provisional assessment was present in the Earlier Indirect Tax Regime (i.e. Pre-GST Regime) as well.

(1) Payment of Tax Liability under GST on Provisional Basis [Section 60(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 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) Execution of Bond with Surety or Security under GST [Section 60(2)]

The payment of tax on provisional basis may he 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 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) Finalization of Provisional Assessment under GST [Section 60(3)]

The proper officer shall, within a period not exceeding six months from the date of the communication of the order issued under sub-section (1), pass the final assessment order after taking into account such information as may be required for finalizing the assessment.
Provided that the period specified in this sub-section may, on sufficient cause being shown and for reasons to he recorded in writing, be extended by the Joint Commissioner or Additional Commissioner for a further period not exceeding six months and by the Commissioner tor such further period not exceeding four years.

(4) Liability to Pay Interest under Provisional Assessment of GST [Section 60(4)]

The registered person shall be liable to pay interest on any tax payable on the supply of goods or services or both under provisional assessment hut not paid on the due date specified under sub-section (7) of section 39 or the rules made thereunder, at the rate specified under sub-section(l) of section 50, from the first day after the due date of payment of tax 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 assessment.

(5) Interest on Refund Consequent to Finalization of Provisional Assessment [Section 60(5)]

Where the 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, interest shall be paid on such refund as provided in section 56.

3. Scrutiny of GST Returns [Section 61 of the CGST Act, 2017]

(1) Communication of Discrepancy Found in Scrutiny and Seeking Explanation Thereto [Section 61(1)]

The proper officer may scrutinize the return and related particulars furnished by the registered person 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.

(2) No Further Action is required If Explanation found to be satisfactory [Section 61(2)]

In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.

(3) Failure to Furnish Satisfactory Explanation or Failure to Take Corrective Measure in Return after Discrepancy is Accepted [Section 61(3)]

In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or where the 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 officer may initiate appropriate action including those under section 65 or section 66 or section 67, or proceed to determine the tax and other dues under section 73 or section 74.

4. Assessment of Non-Filers of GST Returns [Section 62 of the CGST Act, 2017]

(1) Best Judgment Assessment upon Failure to Furnish Periodical Return or Final Return [Section 62(1)]

Notwithstanding anything to the contrary contained in section 73 or section 74. where a registered person tils to furnish the return under section 39 or section 45, even after the service of a notice under section 46, the proper officer may proceed to assess the tax liability of the said 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 years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates.

(2) Withdrawal of Best Judgement Assessment Order upon Filing of Valid Return within 30 Days [Section 62(2)]

Where the registered person furnishes a valid return within thirty days of the service of the assessment order under subsection (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (I) of section 50cr for payment of late fee under section 47 shall continue.

5. GST Assessment of Unregistered Persons [Section 63 of the CGST Act, 2017]

Notwithstanding anything to the contrary contained in section 73 or section 74. 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 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 for furnishing of the annual return for the financial year to which the tax not paid relates:

Provided that no such assessment order shall be passed without giving the person an opportunity of being heard.

6. Summary Assessment under GST in certain Special Cases [Section 64 of the CGST Act, 2017]

The proper officer may, on any evidence showing a tax liability of a person coming to his notice, with the previous permission of Additional Commissioner or Joint Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue and issue an 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 liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the taxable person liable to be assessed and liable to pay tax and any other amount due under this section.

(1) Withdrawal of Order Passed u/s 64(1) and Determination of Liability under section 73 or 74 [Section 64(2)]

On an application made by the taxable person within thirty days from the date of receipt of order passed under subsection (1) or on his own motion, if the Additional Commissioner or Joint Commissioner considers that such order is erroneous. he may withdraw such order and follow the procedure laid down in section 73 or section 74.

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