Assessments under GST
Assessments under GST:- As per section 2(11) of CGST act, “Assessment” means determination of tax liability. Assessment includes self assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment. In this Article, we discussed about various types of assessments under GST.
Types of Assessments under GST: – There are following type of assessments as per section 59 to section 64 of the CGST Act.
1) Self Assessment (Section 59 of the CGST Act)
2) Provisional Assessment (Section 60 of the CGST Act)
3) Scrutiny Assessment (Section 61 of the CGST Act)
4) Assessment of non-filers of GST returns (Section 62 of the CGST Act)
5) Assessment of unregistered person (Section 63 of the CGST Act)
6) Summary Assessment in Special cases (Section 64 of the CGST Act)
Let’s discuss section wise assessments provision in details:-
1) Self Assessment (Section 59 of the CGST Act):- Under the self assessment, the registered persons self calculate the taxable supply and GST payable on taxable supply. For the purpose of Self-assessment the registered person shall file the value of supply and tax payable in monthly Return / annual Return and discharge the self computed tax liability. Hence, all GST returns are based on self-assessment by registered person.
2) Provisional Assessment (Section 60 of the CGST Act):- Under the provisional assessment, if taxpayer unable to determine the value of supply or unable to determine the tax rate on supply then he may request the proper officer for payment of tax on provision basis. The registered person shall furnish an application in form “GST ASMT-1” on the common portal.
After receiving the application in form “GST ASMT-1” the tax officer issue a notice in form “GST ASMT-2” for furnishing the additional documents or information. The registered person shall file a reply to the notice in form “GST ASMT – 3”.
The tax officer would need to pass the order indicating the provisional tax assessed by him within 90 days from the day of making application by tax payer. The tax officer shall issue an order in form “GST ASMT – 4” allowing tax payment on provision basis.
The registered person shall also execute a bond with surety or security for payment of tax on provisional basis. The bond binding the tax payer to pay difference amount of tax as assessed in final assessment and amount of tax deposited on provisional basis. The amount of security to be furnished shall not exceed the twenty five percent of the amount cover under the bond. The bond shall be executed in form “GST ASMT – 5”.
Final assessment should be concluded by tax officer within 6 months from the date of provisional order. However, the time limit of 6 months may be further extended by another 6 months by joint commissioner or additional commissioner and further extended by 4 years by commissioner on sufficient cause.
For the purpose of final assessment the tax officer issue notices in form “GST ASMT -06” for additional information and records. After due consideration the tax officer shall issue final assessment order in form “GST ASMT – 7”. The final assessment order shall specify the amount of tax payable or amount of tax refundable to tax payer.
If at the time of final assessment, the tax payment is more than the tax deposited at the time of provisional assessment then registered person is liable to pay interest on differential amount of tax. In case there is an excess payment in provisional assessment as compare to final assessment then registered person is entitled for tax refund.
For releasing of security, the tax payer have to file an application in form “GST ASMT -08”. The tax officer shall release the security in form “GST ASMT – 09” within seven working days from the date of receipt of application for releasing the security.
3) Scrutiny Assessments under GST (Section 61 of the CGST Act):- After filing the GST returns by registered person, the GST officer may scrutinize the returns and related particulars to verify the correctness of the returns. In case any discrepancy found, the GST officer shall issue notice to registered persons about the discrepancy and seeking a reply from the person. The notice shall be issue in form “GST ASMT – 10”. The notice should contain the nature of discrepancy and if possible, the amount of tax, interest or any other amount payable in relation to such discrepancy.
The registered person have to furnish reply within 30 days from date of such notice in form “GST ASMT – 11.”
The registered person may accept the discrepancy mentioned in the notice. In such case registered person have to pay taxes, interest and such other amount due for payment. After payment of tax, registered person have to inform the same to GST Officer. If GST officer found that information is acceptable then he shall inform the registered person accordingly in from “GST ASMT – 12”.
If registered person does not accept the discrepancy mentioned in the notice then he shall explain the same to the GST officer. If the reply or explanation submitted by registered person is satisfactory then GST officer will inform the taxpayer and no further actions will be taken in this regards.
In case if reply or explanation submitted by registered person is not satisfactory or the taxpayers has not given explanation within 30 days from date of notice or has not rectified the discrepancy mentioned in the notice, then GST officer may take following appropriate actions.
- Conduct an Audit under section 65 of CGST to be done by CGST or SGST department.
- Start a Special Audit under section 66 of CGST Act to be done by Chartered Accountant appointed by commissioner.
- Inspect or search the places of the taxpayers as per section 67 of CGST Act.
- Initiate demand or recovery provisions as the case may be under section 73 or section 74 of CGST Act.
4) Assessment of non-filers of GST returns (Section 62 of the CGST Act):- AS per section 46 of CGST Act, in case a registered person fail to furnished return under section 39 or section 44 or section 45 then GST officer may issue notice for furnishing return within 15 days of such notice.
In case a taxpayer fail to furnish the returns even after receiving notice under section 46 then GST officer shall conduct an assessment of the tax liability of the registered person on best of his judgment. The GST office has to consideration all the relevant materials that are available with him for assessment of tax liability.
The assessment order may be issued within a period of 5 years from the due date of furnishing the annual return for the financial year for which tax has not been paid. The assessment order shall be issued in form “GST ASMT – 13”.
After receiving the assessment order if taxpayer furnished valid return and pay taxes within 30 days from date of issue of assessment order then assessment order under this section shall be deemed withdrawn. In that case, the taxpayer will be liable to pay a fee under section 47 and / or interest under section 50(1).
5) Assessment of unregistered person (Section 63 of the CGST Act):- If a taxable person fail to obtain GST registration or if registration taken but cancelled under section 29(2) even if he is liable to be registered and pay tax then GST officer may determine his tax liability to the best of his judgment. Before issuing the assessment order in this section, the proper officer will issue a notice in from “GST ASMT – 14” and allowing a time of fifteen days to unregistered person to furnish his reply. After considering the reply the proper officer will issue assessment order in form “GST ASMT – 15”.
The assessment order may be issued within a period of 5 years from the due date of furnishing of annual return for the financial year for which the tax has not been paid.
6) Summary Assessments under GST in Special cases (Section 64 of the CGST Act):- The proper officer may issue an assessment order in which he assess tax liability of such person based on any evidence showing a addition tax liability of such person. The assessment order may be issued with the previous permission of additional commissioner or Joint commissioner. The proper office may issue such assessment order if he has sufficient grounds to believe that any delay in doing so may adversely affect the interest of revenue. The summary assessment order shall be issued in form “GST ASMT – 16”. The taxable person may file an application in form “GST ASMT – 17” for withdrawal of summary assessment order.
If tax liability is belongs to the supply of goods and taxable person is not ascertainable then person who in charge of such goods is liable for payment of tax and any other amount due under this section.
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