Assessment means determining tax liability under the CGST Act, 2017 and includes the following types of assessment
> Self Assessment
> Provisional Assessment
> Reassessment on Scrutiny
> Best judgement Assessment-non filers of return
> Assessment of unregistered persons
> Summary assessment on evidence
Every registered person is required to self assess the taxes payable under this act and furnish a return for each tax period.
The taxable person is unable to determine the value of goods and/or services 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 may pass an order, within a period not later than 90 days from the date of receipt, allowing payment of tax on provisional basis as such rate or on such value as may be specified by him.
The proper officer is required to pass final assessment order within 6 months from the date of the communication of order. The period specified may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the joint commissioner for a further period not exceeding six months and by the commissioner for such further period not exceeding four years.
Re assessment on scrutiny
On scrutiny when discrepancies are found by proper officer, reassessment may be made by him if the taxable person fails to give satisfactory explanation within thirty days of being informed of the discrepancies.
Best Judgement Assessment
It may be made by the proper officer if the registered person fails to file general return under section 39 or final return under section 45 even after notice given under section 46. Such an assessment may be made within 5 years from the due date of annual return of the period to which the tax not paid relates.
The assessment is deemed withdrawn when the return is filed within 30 days of service of assessment. Late fee and interest, however, shall be payable.
Assessment of unregistered persons
It may be done 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 judgement 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 paid relates
Provided that no such assessment order shall be passed without giving the person an opportunity of being heard (section 63).
Summary Assessment on evidence
Section 64 of the CGST Act, 2017 states that a summary assessment can be done by a proper officer, on any evidence showing a tax liability of a person coming to his notice, with the previous permission of Additional Commissioner or Joint Commissioner if the officer believes that any delay in assessment can adversely affect the interest of the revenue.
Every person registered under the act shall himself assess the tax payable by him for a tax period and after such assessment he shall file the return required under section 39.
The term commencement of audit is important because audit has to be completed within a given time frame in reference to this date of commencement. Commencement of audit means the later of the following
a) The date on which the records/accounts called for by the audit authorities are made available to them, or
b) The actual institution of audit at the place of business of the taxpayer.
Audit by Department
The Commissioner or any officer of CGST or SGST or UTGST authorized by him by a general order or specific order, may conduct audit of any registered person. The frequency and manner of audit will be prescribed on due course.
A prior notice of not less than fifteen working days will be sent to the registered person before the audit is conducted.
The audit needs to be completed within a period of three months from the date of commencement of the audit, but a further extension for a period of six months may be provided by the commissioner for the reasons recorded in writing.
On conclusion of audit, the proper officer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations and the reasons for such findings.
During the course of audit, the authorized officer may require the registered person,
i) To afford him the necessary facility to verify the books of accounts or other documents as he may require,
ii) To furnish such information as he may require and render assistance for timely completion of the audit.
If at any stage of scrutiny, inquiry, investigations or any other proceedings, if department is of the opinion that the value has not been correctly declared or credit availed is not with in the normal limits, department may order special audit by chartered accountant or cost accountant, nominated by department.
A report of audited signed and certified by the appointed Chartered Accountant or Cost Accountant is required to be submitted within 90 days although this period can be further extended to 90 days. The registered person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit which is proposed to be used in any proceedings against him under this act or the rues made there under. Where the special audit conducted results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilized, the proper officer may initiate required action.
Time limit to submit the Audit report
The auditor will have to submit the report within 90 days or within the further extended period of 90 days.
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