Introduction: The assessment of non-filers under Section 62 of the Central Goods and Services Tax (CGST) Act is a crucial aspect of ensuring compliance. This article delves into the procedures outlined in Section 62, detailing the consequences for registered individuals who fail to furnish returns as mandated by the Act.
Where a registered person fails to furnish monthly or quarterly returns under Section 39 or the final return under Section 45, a notice in Form GSTR-3A shall be issued by the proper officer requiring him to furnish such returns within 15 days under Section 46.
According to Section 62, when the registered person fails to furnish the return within the prescribed time limit 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 that is available or that he has gathered, and issue an assessment order in Form GST ASMT-13 and summary thereof shall be uploaded electronically in Form GST DRC-07 within a period of 5 years from the due date for furnishing the annual return for the financial year to which the tax not paid relates, under Section 44.
Where the registered person furnishes a valid return within 30 days of the service of the assessment order issued under section 62, the said order shall be deemed to have been withdrawn, but the liability for payment of interest under sub-section (1) of section 50 or for payment of late fees under section 47 shall continue.
Accordingly, the registered person can file the return within a period of 30 days from the date of the assessment order issued under section 62 with applicable interest and late fees and the assessment order issued based on best judgement will be withdrawn.
Conclusion: Understanding the intricacies of Section 62 of the CGST Act is vital for businesses and taxpayers. The assessment of non-filers involves a systematic process with legal implications. The reference to a recent High Court judgment adds a layer of legal context, offering insights into the interpretation and application of this crucial section.
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Disclaimer: This article is only for the purpose of understanding the provisions of the Act, The author bears no responsibility on decisions taken by the readers whatsoever. E&OE.