Assessment – GST Laws

· Assessment, Meaning of

· Types of Assessment

1. Self-Assessment – By Assessee

2. Provisional Assessment

3. Scrutiny Assessment

4. Best Judgment Assessment- By GST Authorities

·  Assessment of non-filers of returns

·  Assessment of unregistered persons

5. Summary assessment

· Relevant  GST  Forms

 Assessment

The word “Assessment “is comprehensive and can comprehend the whole procedure by ascertaining and imposing liability on taxpayer. The word “Assessment” cannot be given a restricted meaning (ITO V. Guruswamy 34 ITR 601 SC).

Assessment under GST

“Assessment” means determination of tax liability under Central Goods and Services Tax Act, 2017 and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment.

Sections 59 to 64 of Chapter XII under Central Goods & Services Tax Act, 2017 deals with an important aspect, namely, “Assessment”.

Types of Assessment

1. Self-Assessment

Every registered person shall self-assess the taxes payable under GST Statutes and furnish a return for each tax period as specified under section 39. Like previous Indirect tax regime, the GST regime also retained self-assessment by the taxpayer himself. Section 59

Further, like under Income Tax, an assessment made by the registered person would be treated as final barring few circumstances.

2. Provisional Assessment

Subject to the provisions of sub-section (2) of Section 60, where

  • The taxable person is unable to determine the value of goods or services or both or
  • Determine the rate of tax applicable, may request the proper officer in Form GST ASMT-01 by giving reasons & along with the requisite documents in support for payment of tax on a provisional basis.

The proper officer may on receipt of the said application in Form GST ASMT 01, issue a notice in FORM GST ASMT-02 to furnish additional information if any.

The applicant shall file a reply to the notice received by him in FORM GST ASMT – 03 and may appear in person before the said officer if he so desires.

Furnishing of Bond & Security

The registered person shall execute a bond in FORM GST ASMT-05 along with a security in the form of a bank guarantee not exceeding twenty-five percent of the amount covered under the bond as determined by the proper officer.

Payment of Tax on provisional basis

The proper officer may issue an order in FORM GST ASMT-04 to pay tax on a provisional basis.

Obligation to pass Final Order

The proper officer shall, within a period six months from the date of the communication of the “Provisional Order”, pass the final assessment order in Form GST ASMT-07 after taking into account such information as may be required.

Extension of time to pass final order

On sufficient cause, in writing, six months may be extended by the Jt. Commissioner or Additional Commissioner for a further period of six months and by the Commissioner for further four years.

3. Scrutiny Assessment

Scrutiny Assessment means – examination of GST returns by giving an opportunity to the registered person to substantiate his declarations like total receipts, sales, computation of GST Rates, the genuineness of Input Tax credit claims etc. During the course of scrutiny, the Proper officer gets an opportunity to conduct inquiries.

Scrutiny Assessment under GST regime

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 Form GST ASMT-10, and seek his explanation. Section 61

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

If no satisfactory explanation is furnished within thirty days of receipt of the communication, the proper officer may initiate appropriate action as prescribed under the GST laws.

4. Best Judgment Assessment

If a registered person fails to furnish due return even after issuing of notice for submission of the return, the proper officer may proceed to assess such person to the best of his judgment.

i. Assessment of non-filers of returns

Where a registered person fails to furnish the return or 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 judgment taking into account all the relevant material and issue an assessment order in Form GST ASMT-15 within a period of five year as the case may be. Section 62

ii. Assessment of unregistered persons –

Where a taxable person fails –

  • To obtain registration or
  • Whose registration has been cancelled but who was liable to pay tax, the proper officer may proceed to assess the tax liability to the best of his judgment and issue an assessment order within a period of five years as the case may be. However, no such assessment order shall be passed without giving the person an opportunity of being heard. Section 63

5. Summary assessment

The proper officer with the previous permission of Additional Commissioner or Jt. Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue and issue an assessment order in FORM GST ASMT-16 if he has sufficient grounds to believe that any delay in doing so may adversely affect the interest of revenue:

Conditions:

  • Where the tax liability is not ascertainable; and
  • Tax liability pertains to supply of goods. Section 64

Assessment – Relevant GST Forms

Sl. No. Form Purpose

 

By
1. GST  ASMT   –   01 To request Provisional Assessment Registered Person
2. GST  ASMT   –   02 To get additional information

 

Proper Officer
3. GST  ASMT   –   03 To submit additional information Registered Person
4. GST  ASMT   –   04 To issue an Order to pay tax on provisional basis Proper Officer
5. GST  ASMT   –   05 To Execute a Bond Registered Person
6. GST  ASMT   –   06 To get additional information for final assessment Proper Officer
7. GST  ASMT   –   07 To Issue final assessment Order Proper Officer

 

8. GST  ASMT   –   08 To get release of Security furnished Registered Person
9. GST  ASMT   –   09 To release of Security as furnished Proper Officer

 

10. GST  ASMT   –   10 To seek explanation from Registered Person under Scrutiny assessment Proper Officer
11. GST  ASMT   –   11 To comply or furnish an explanation under scrutiny assessment Registered Person
12. GST  ASMT   –   12 To convey acceptance of explanation of Registered Peron Proper Officer
13. GST  ASMT   –   13 To issue an order of assessment made under “ Best Judgment Assessment” Proper Officer
14. GST  ASMT   –   14 To issue notice to conduct ‘Best Judgment Assessment” Proper Officer
15. GST  ASMT   –   15 To issue an order of assessment made under “ Best Judgment Assessment” Proper Officer
16. GST  ASMT   –   16 To issue order of summary assessment Proper Officer

 

17. GST  ASMT   –   17 To withdraw of the summary assessment order Registered Person
18. GST  ASMT   –   18 To reject withdrawal application of summary assessment order Proper Officer

The Author is a budding Tax Law Professional @ can be reached at shreetaxchambers@bsnl.in

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