The concept of ‘Assessment’ is not new under GST, it is present in present tax structure also. As per section 2(11), “assessment” means determination of tax liability under this Act and includes self- assessment, re- assessment, provisional assessment, summary assessment and best judgement assessment”.
In this write- up types of assessment and related aspect of assessment are covered.
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.
Returns under section 39
|Name of the Person||Time limit|
|Registered Taxable Person||20th of the next month|
|Composition Supplier||18th of the month succeeding quarter|
|Tax Deductor||10th of the next month|
|Input Service Distributor||13th of the next month|
|Non- Resident Taxable Person||within 20 days after the end of a calendar month or within seven days after the last day of the period of registration specified under sub- section (1) of section 27, whichever is earlier.|
|A registered person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periods has not been furnished by him.|
In a layman language, provisional assessment means assessing something on provisional basis. Various provisions related to provisional assessment are:
Request to the Proper officer
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.
Execution of bond
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.
Final assessment order
The proper officer shall, within a period not exceeding six months from the date of the communication of the order issued above, pass the final assessment order after taking into account such information as may be required for finalizing the assessment:
Provided that the period specified here 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.
Liability to pay interest
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 there under, 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.
Interest on Refund
Where the registered person is entitled to a refund consequent to the order of final assessment as mentioned above, subject to the provisions of sub-section (8) of section 54, interest shall be paid on such refund as provided in section 56 (Interest on delayed refunds).
The refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to:
(a) refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies;
(b) refund of unutilised input tax credit under sub-section 54(3);
(c) refund of tax paid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued;
(d) refund of tax in pursuance of section 77;
(e) the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person; or
(f) the tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notification, specify.
Scrutiny of Returns
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.
In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.
Action under section 65 or section 66 or section 67
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(audit by tax authorities) or section 66(special audit) or section 67(power of inspection, search and seizure), or proceed to determine the tax and other dues under section 73 or section 74 (both section 73 and section 77 are of Demand and Recovery)
Assessment of non- filers of returns
Issuance of Best Judgement assessment order
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
Deemed withdrawal of Best Judgement assessment order
Where the registered person furnishes a valid return within thirty days of the service of the assessment order issued above, 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 (not exceeding 18%) or for payment of late fee under section 47(Levy of late fee) shall continue.
Assessment of unregistered persons
Issuance of Best Judgement assessment order
If 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.
Opportunity of being heard
The above assessment order shall not be passes without giving the person an opportunity of being heard.
Summary Assessment in special cases
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.
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.
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Author: C S Ekta Maheshwari is the Author of this article and is Company Secretary by profession. The Author can be reached at [email protected]
The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.