Assessment procedure in GST with Brief of Act, Rules & Forms

Assessment under GST

A simple meaning of assessment is ‘determine to accurate tax liability’, so in every law it is common meaning of assessment to find out liability. In GST Law main object of assessment procedures are to effectively, efficiently and accurately collection of revenue.

Assessment is very small word, but it is very important for both department and taxpayer because unless and until actual liability is not determined then object of law cannot be achieved.

Whole Assessment procedure is a mechanism to find out actual liability payable by taxpayer and in this it is determined either as self-assessed by taxpayer or by department, which is resulted by following mechanism defined in law.

Section 2(11) of CGST “assessment” means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment;

Self Assessment: –

Self assessment is a very knowing assessment by everyone if we are discuss about it then in this assessment taxpayer himself calculating their liability and declared by respective returns, every assessment procedure start with self assessment, also we can conclude self assessment as declared assessment in which assessee declared liability and department accept as it without any inquiry and cross check.

Sec 59 of CGST Act: – Every registered person shall self-assess the taxes payable under this Act and furnish a return for each tax period as specified under section 39.

Provisional Assessment: –

We can define provisional Assessment is a conditional Assessment, when assessee unable to find actual Value, Rate and liability then he approach to Assessing officer with written application and AO pass an order on provisional and conditional basis, assessee deposit tax liability as specified in order on provisional basis.

Sec 60 of CGST Act: –

(1) Subject to the provisions of sub-section (2), where the taxable person is unable to determine the value of goods or services or both 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 shall pass an order, within a period not later than ninety days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him.

(2) The payment of tax on provisional basis may be allowed, if the taxable person executes a bond in such form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the taxable person for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed.

(3) The proper officer shall, within a period not exceeding six months from the date of the communication of the order issued under sub-section (1), pass the final assessment order after taking into account such information as may be required for finalizing the assessment: Provided that the period specified in this sub-section may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the Joint Commissioner or Additional Commissioner for a further period not exceeding six months and by the Commissioner for such further period not exceeding four years.

(4) The registered person shall be liable to pay interest on any tax payable on the supply of goods or services or both under provisional assessment but not paid on the due date specified under sub-section (7) of section 39 or the rules made thereunder, at the rate specified under sub-section (1) of section 50, from the first day after the due date of payment of tax in respect of the said supply of goods or services or both till the date of actual payment, whether such amount is paid before or after the issuance of order for final assessment.

(5) Where the registered person is entitled to a refund consequent to the order of final assessment under sub-section (3), subject to the provisions of sub-section (8) of section 54, interest shall be paid on such refund as provided in section 56.

Departmental Procedure for GST Assessment

• GST ASMT-01: – Every registered person requesting for payment of tax on provisional basis with document support by electronically in FORM GST ASMT-01.
• GST ASMT-02: – Proper officer issue a notice in FORM GST ASMT-02 for furnish the additional information or document in support and may appear in person if he so desires.
• GST ASMT-03: – Applicant shall file a reply to notice in FORM GST ASMT-03 with proper information and supporting documents.
• GST ASMT-04: – Proper officer issue an order in FORM GST ASMT-04 after allowing the payment of tax on a provisional basis and indicating value, rate or both also amount of security mention in order which the bond is to be executed.
•  GST ASMT-05: – When order will be passed then assessee shall furnish a bond in the FORM GST ASMT-05 in form of bank guarantee with amount mention in order.
•  GST ASMT-06 & GST ASMT-07: – If Proper officer need any more details for finalization of Assessment then he shall issue a notice in FORM GST ASMT-06 for calling information and record, after getting all required information and records, proper officer issue a final assessment order by specifying amount in FORM GST ASMT-07, if any amount payable by assessee, then he must pay with interest and if any amount refundable then amount refunded with interest rate specified under this Act & Rules.
• GST ASMT-08 & GST ASMT-09: – When final assessment order issued then assessee may file application in form ASMT-08 for release the security furnished and the proper officer after ensuring that any balance tax has been deposited shall release same and pass an order in FORM GST ASMT-09 within seven days from receipt of application.

Scrutiny Assessment: –

Scrutiny means a crosscheck and verification, for ensuring the correctness of return submitted by registered person, in the process of scrutiny if any discrepancies found in return, then proper officer-initiated scrutiny process and crosscheck and verify that registered person has follow the process define under this act or not also ensure that assessee submitted correct information in proper manner or not.

In scrutiny process, proper officer served a notice to submit correct particulars and rectify discrepancy, if satisfactory reply and corrective action is not taken by registered person in specified time period then appropriate action may taken by assessing officer.

Scrutiny of Returns (Sec 61 of CGST Act) : –

(1) 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 such manner as may be prescribed and seek his explanation thereto.

(2) In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.

(3) In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or where the registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, the proper officer may initiate appropriate action including those under section 65 or section 66 or section 67, or proceed to determine the tax and other dues under section 73 or section 74.

Some important points for practical dealing

1. Provision of this assessment is applicable only on registered person and if return is filed by him.

2. Scrutiny assessment only deals for verification of correctness of the return on the basis of information available by him and does not have any scope for investigation beyond return.

Departmental Procedure for GST Assessment 

• GST ASMT-10: – In the scrutiny process proper officer has satisfactory with records then drop the process, and if not satisfy and found any discrepancy then serve a notice in FORM GST ASMT-10 to get information and explanation within 30 days or further period as may be permitted for such discrepancy, and whereas possible proper officer also quantifying tax, interest and any other sum payable. 
• GST ASMT-11: – Registered person after receiving notice in ASMT-10 accept the discrepancy and pay the tax, interest and any other sum payable as mention in it, also furnish a reply with explanation in FORM GST ASMT-11 to the proper office for such discrepancy.
• GST ASMT -12: – After furnishing the reply with explanation by registered person and if it is found to be acceptable then proper officer stops any further inquiry and inform him accordingly in FORM GST ASMT-12.

Best Judgment Assessment Failure to file Return:-

Every registered person liable to file return, if when registered person have not furnish return under sec 39 (GSTR 3B/4) or sec 45 (GSTR-10) even after service of notice then proper officer has only one way to complete assessment after considering information, data and records available with him, which means proper officer shall pass an order in their best judgment and if registered person furnish a valid return then proper officer drop the assessment only if all tax and any sum payable has been deposited in full.

Best judgment assessment does not deal with sec 37 and 44 of Act if any registered person did not file GSTR-1and GSTR-9 then proper officer may not take appropriate action in sec 62 of CGST ACT.

Assessment of non filers of returns (Sec 62 of CGST Act). (1) Notwithstanding anything to the contrary contained in section 73 or section 74, where a registered person fails to furnish the return under section 39 or section 45, 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 judgement taking into account all the relevant material which is available or which he has gathered 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 not paid relates.

(2) Where the registered person furnishes a valid return within thirty days of the service of the assessment order under sub-section (1), the said assessment 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 fee under section 47 shall continue.

Departmental Procedure for Assessment 

•  GSTR-3A, (Rule 68): – Notice in form GSTR-3A in a manner prescribed for furnishing return within 15 days for completing assessment.
• GST ASMT-13, Rule 100 (1): – After considering all information and record available him proper officer issue an order with summary uploaded electronically in FORM DRC-07.

Assessment of Unregistered Person: –

In this assessment proper officer assess in case where a taxable person is liable to obtain registration but he fails to obtain or a person whose registration has been cancelled but liable to pay tax, proper officer may initiate Suo moto proceedings on the basis of information obtained, during inspection or survey, through any information available intelligence unit, or any other means.

Section 63 of CGST Act:- Notwithstanding anything to the contrary contained in section 73 or section 74, 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 judgment 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 not paid relates:

Provided that no such assessment order shall be passed without giving the person an opportunity of being heard.

Departmental Procedure for Assessment

• GST ASMT-14, Rule 100(2): – Proper officer shall issue a notice to a taxable person in FORM GST ASMT-14 with containing the grounds on which the assessment is proposed to be made on best judgment basis and shall also serve a summary thereof electronically in FORM GST DRC-01.
• GST ASMT-14, Rule 100(2): – After allowing a time of fifteen days to such person to furnish his reply and pass an order in FORM GST ASMT-15 and summary thereof shall be uploaded electronically in FORM GST DRC-07.

Assessment in certain special cases (Summary Assessment): –

Whenever proper officer has come to know and also has reason to believe that an assessment order must be passed to taxable person for protect the interest of revenue then with prior permission of additional commissioner and joint commissioner, he shall assess the tax liability of such person and issue an assessment order,

Also, if taxable person not ascertainable then person in charge of such goods shall be deemed to taxable person and liable to be assessed and pay.

Summary assessment in certain special cases (Section 64 of CGST Act): – (1) The proper officer may, on any evidence showing a tax liability of a person coming to his notice, with the previous permission of Additional Commissioner or Joint Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue and issue an assessment order, if he has sufficient grounds to believe that any delay in doing so may adversely affect the interest of revenue:

Provided that where the taxable person to whom the liability pertains is not ascertainable and such liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the taxable person liable to be assessed and liable to pay tax and any other amount due under this section.

(2) On an application made by the taxable person within thirty days from the date of receipt of order passed under sub-section (1) or on his own motion, if the Additional Commissioner or Joint Commissioner considers that such order is erroneous, he may withdraw such order and follow the procedure laid down in section 73 or section 74.

Departmental Procedure for Assessment 

• GST ASMT-16, Rule 100(3): – Under this assessment, order shall be issued in FORM GST ASMT-16and a summary of the order shall be uploaded electronically in FORM GST DRC-07.
• GST ASMT–17, Rule 100(4): – Taxable person may file an application for withdrawal of the assessment order in FORM GST ASMT–17.
• GST ASMT-18, Rule 100(5): – The order of withdrawal or, as the case may be, rejection of the application shall be issued in FORM GST ASMT-18.

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ANKIT JAWARIA, PEEYUSH SAHLOT

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