Assessments Under GST
Section-62 Assessment of non-filers of returns
-As per Section-62 provisions, proper officer can proceed to assess the tax liability of the said person to the best of his judgment, if taxpayer fails to file returns as per section 39 & as per section 45,
-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.
Section 39- Relates to GSTR3B
Section 44- Relates to Annual Return (GSTR-9)
Section 45- Relates to Final Return (GSTR-10) to be filed on
cancellation of registration
Section 62 cannot be invoked for non-filing of GSTR-1, GSTR-2 and GSTR-9.
Essential Ingredient :-
Issuance of notice under section 46, is inescapable and compulsory for any action under section 62 to be taken up
Other Important Points.
Whenever the provisions of section 73 or 74 applies, the provisions of section 62 of the Act cannot be invoked.
Section 73 relates to- Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful – misstatement or suppression of facts.
Section 74 relates to- Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful-misstatement or suppression of facts.
Process of Assessment
♦ The order of assessment made under section 62 shall be issued in FORM GST ASMT-13 and a summary thereof shall be uploaded electronically in FORM GST DRC-07.
♦ Since DRC-07 will also be issued, best judgment assessment under section 62 proceeds on the understanding that the demand made in order in ASMT13 will lead to recovery of tax assessed.
♦ It is for this reason that if a valid return is not filed within 30 days to vacate this order, to set aside this demand will be to file appeal under section 107 is the only remedy.
Relevance of Best Judgment