Under the Goods and Services Tax
(GST) framework in India, "Assessment" means the
determination of tax
liability under the Act. The GST law is primarily a self-compliance system, but it provides several
types of assessments to handle specific situations, ranging from voluntary reporting to protective,
fast-track tax demands by authorities.
There are 6 main types of GST Assessments governed by Sections
59 to 64 of the CGST Act.<< /p>
Aadhar Card of the proprietor
Pan Card of the proprietor
Latest Bank Statement of the proprietor
Registered Office Proof
Every registered person is required to assess the tax payable under the Act and file the return for the same in the forms as already discussed in the Returns section.
Applies when a Registered Person is not able to determine the taxable value or rate of tax. The registered person shall file a request in writing to the proper officer for the provisional assessment. The officer is required to pass the order within 90 days of such request form the registered person. The registered person shall execute a bond as a surety or security for the potential tax differential. The final assessment order shall be passed within 6 months of the provisional assessment order which may be Extendable by 6 months by Joint/Addl. Commissioner, and up to 4 years by the Commissioner. The Interest @ 18% applies on underpayments; interest @ 6% applies on delayed refunds.
Scrutiny of Returns can be done by the proper officer to verify its correctness. If any discrepancies are found in the return the officer shall communicate the same to the registered person in Form GST ASTM-10. The reply by the taxpayer must be filed within 30 days in Form GST ASMT-11 and the acceptance of the explanation by the officer is issued in Form GST ASMT-12. When reply received by the proper officer:
Explanation found Satisfactory: It shall be informed to Registered person and no further actions will be taken
Explanation NOT found Satisfactory:
The Proper Office may:
If a Registered Person fails to furnish returns under section 39 or 46, even after receiving a 15- day notice under section 46, the Proper Officer may pass a BEST JUDGED ASSESSMENT order using available materials. The proper officer will determine the Tax Liability taking into account all the material which is available or has been gathered.
The Proper Officer shall issue the assessment order within 5 years of furnishing the annual return for the financial year. The assessment order is deemed withdrawn if a valid return is filed within 60 days of service. It can be extended by a further 60 days upon payment of an additional late fee of ₹100/day. Interest (Sec 50) and normal late fees (Sec 47) remain payable.
The proper officer will then proceed with the BEST JUDGED ASSESSMENT in following cases:
The proper officer may proceed to determine the Tax liability of a Registered Person, if any evidence of tax liability comes to his notice. Prior approval of Additional Commissioner or Joint Commissioner shall be required by the proper officer before starting the assessment. Such assessment is done to protect the interest of the revenue. If the taxpayer finds the summary assessment unjustified, they can file an application within 30 days in Form GST ASMT-17 to the Assistant Commissioner. If accepted, the Joint/Additional Commissioner will withdraw the summary order and instead tell the officer to follow regular demand procedures (Section 73/74/74A).
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Private Limited Company Registration
GST Assessment is the process of determining a taxpayer's GST liability under the CGST Act. It ensures the correct calculation, payment, and compliance of GST by registered taxpayers.
There are six types of GST Assessments under Sections 59 to 64 of the CGST Act:
Self Assessment under Section 59 requires every registered taxpayer to calculate their GST liability, pay the tax due, and file GST returns accurately.
A taxpayer can apply for Provisional Assessment under Section 60 when they cannot determine the correct taxable value or applicable GST rate. The proper officer grants permission after reviewing the request.
Under Section 61, the GST officer examines filed returns to identify discrepancies. If any differences are found, the taxpayer must provide an explanation or rectify the errors within the prescribed time.
Under Section 62, if a registered taxpayer fails to file GST returns even after receiving a notice, the GST officer can determine the tax liability based on available information through a Best Judgment Assessment.
Yes. Under Section 63, a person who is liable for GST registration but has failed to register, or whose registration has been cancelled, may be assessed by the proper officer after issuing a show cause notice.
Summary Assessment under Section 64 is carried out in exceptional cases where immediate action is necessary to protect government revenue. It requires prior approval from the Joint or Additional Commissioner.
Yes. A taxpayer can file an appeal against a GST Assessment order if they believe it is incorrect. The appeal must be filed within the prescribed time limit under the GST law.
GST Assessment helps ensure accurate tax payment, reduces the risk of penalties, improves GST compliance, and promotes transparency between taxpayers and tax authorities.
