Key Points related to Assessment and Audit under GST (Section 59-66 of CGST Act, 2017 and  Rules 98-102 of CGST Rules, 2017 ):

Self Assessment under GST (Section 59)- 

Every Registered person shall self-assess the taxes payable on supplied made during tax period and file the return of each tax period as per section 39 of CGST Act. 

Provisional Assessment under GST (Section 60)- 

If the registered person is unable to find the Assessable Value on which tax has to be calculate or unable to find the applicable rate, then the registered person may file an request to the proper officer to pay the tax on the basis of Provisional Assessment. The proper officer may within 90 days from the receipt of application along with required documents issue an order specifying the rate and value on which tax has to be pay on provisional basis.

For availing the benefit of Provisional Assessment, the registered person are bound to execute the bond and furnish surety or security in the form of bank guarantee which shall not exceeding 25% of the amount covered under the bond.(Amount Includes the IGST, SGST, CGST, UTGST or Cess payable in respect of such transaction.

The proper officer shall within the period of 6 months from the date of order of Provisional Assessment issue the final assessment order. Joint or Additional Commissioner may by recorded in writing the reason; extend the date of final assessment order for further 6 months maximum. However, the Commissioner may extend the date for further 4 years.

The registered person may file the application for release of security after making all the settlement as mentioned in the final assessment order. The proper officer may release the security within 7 working days from the receipt of application after ensuring that the registered person has completed all the settlement which is mentioned in the final assessment order. 

Scrutiny of Returns under GST (Section 61):

Where the return filed by the registered person is selected for scrutiny, then the proper officer scrutinize the returns on the basis of information or data available to him and if there is some discrepancy between the return and available information, then same discrepancies will be communicated to the registered person for giving explanation on it.

If there is no satisfactory explanation has been received within 30 days from the date of communication of discrepancies, then the appropriate action will be taken against the registered person as per Section 65, 66, 67 and determine the dues or penalty if any as per Section 65, 66, 67 and determine the dues or penalty if any as per Section 73, 74.

Assessment of Non-filers of Returns and Unregistered person under GST (Section 62 and 63):

If the registered person fails to file the returns as per the defined sections and rules or where a taxable person fails to obtain the registration or Whose registration is cancelled and they are liable to tax, then the proper officer assess the tax liability to the best of his judgment and issues the order of best judgment assessment within a period of 5 years from the date of Annual Return of the financial year to which tax not paid relates. Opportunity of being heard shall be given before issuing the best judgment assessment order, the registered person has to file the reply within 15 days from the date of notice of best judgment assessment..

Assessment in Special Cases under GST (Section 64):

If the proper officer is having such evidences which proves that there is some discrepancies in the tax liability, then he may with the previous permission of the Joint Commissioner or Addl. Commissioner assess the tax liability in the interest of the revenue.

If the taxable person to whom the tax liability is imposed is not ascertainable, then the person in charge shall be liable to pay the assessed tax or any other dues.

Audit by Tax Authorities under GST (Section 65): 

The Commissioner or any other officer authorized by him by general or specific order, may undertake the audit of registered person for such period as may prescribed in the order.

Audit shall be conducted at the place of business of the registered person and the registered person shall receive the copy of order at least 15 days before the date of audit conduct.

The proper officer shall complete the audit within 3 months from the date of commencement of audit. The period of audit can be further extended for not exceeding 6 months with the permission of the Commissioner.

On conclusion of Audit, the proper officer shall report all the findings and reason of such findings within 30 days.

Any default has been deducted during audit shall be treated according to the Section 73 or 74.

Special Audits (Section 66):

If at the time of Scrutiny, Enquiry, investigation or any other proceedings, the Assistant Commissioner came to know some deficiencies, then he may with prior approval of Commissioner direct the registered person to get his books of accounts examined and audited by CA or CMA as nominated by the Commissioner.

Audit shall be completed within 90 days from the date of order and report shall be submitted to the Assistant Commissioner. Audit period can be extended  for further period of 90 days on the request of registered person or CA or CMA.

Opportunity of being heard shall be given to the registered person before start proceeding against him through material gathered during audit.

Form Number and Description used under Assessment and Audit:

FORM NO. Description
GST ASMT 01 Application for Provisional Assessment
GST ASMT 02 Additional Documents or Details demand by Proper officer against ASMT 01
GST ASMT 03 Reply file against ASMT 02
GST ASMT 04 Order Pass to Allow for Provisional Assessment
GST ASMT 05 For execute the bond and furnish the security through bank guarantee
GST ASMT 06 Calling of Information by proper officer for Final Assessment
GST ASMT 07 Final Assessment Order
GST ASMT 08 Application for release of security from the proper officer
GST ASMT 09 Order pass for releasing of security
GST ASMT 10 Notice of discrepancies occurred at the time of Scrutiny of Returns
GST ASMT 11 Reply against ASMT 10
GST ASMT 12 Intimation by proper officer against reply filed in ASMT 11
GST ASMT 13 Order of Assessment as per Section 62
GST ASMT 14 Notice for making the best judgment Assessment
GST ASMT 15 Order of Best Judgment Assessment after giving opportunity of being heard
GST ASMT 16 Order of Summary Assessment made under Section 64
GST ASMT 17 Application for Withdrawal of the summary Assessment
GST ASMT 18 Order passed   against ASMT 18
GST ADT-01 Notice to the registered person for intimating about Audit.
GST ADT-02 Inform the findings of the Audit by the proper officer to the registered person
GST ADT-03 Notice about special audit to the registered person
GST ADT-04 Inform the findings of the Audit by the proper officer to the registered person

Rahul Grover – [email protected]

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March 2021