ASSESSMENT In GST

Assessment means determination of tax liability. Every law requires proper assessment of tax liability for each and every tax payer. But assessment of each and every tax payer is practically not possible so, there are many ways in which assessment can be done either by himself or by authority.

1. Types of assessment:

♦ Self assessment (section 59)

♦ Provisional assessment( section 60)

♦ Scrutiny assessment (section 61)

♦ Assessment of registered taxable person who have failed to file

♦ returns( section 62)

♦ Assessment of unregistered person (section 63)

♦ Summary assessment in special case (section 64)

2. Section 59 refers to the assessment made by the taxable person himself while all other assessments are undertaken by tax authorities.

3. Self assessment:

♦ Every registered taxable person shall self assess the taxes payable under this act and furnish a return for each tax period as specified u/s 39. Means department believe in honesty of tax payer, whatever he stated in returns , department will accept it subject to few conditions.

4. Provisional assessment:

♦ Firstly, it is not done by authorities rather it is undertaken at the instance of the tax payer. Generally sometimes tax payer is not able to calculate proper tax liability due to various reasons.

♦ This section will work under following situations:

  • Difficulty in ascertaining value of supply due to :
    • Transaction value to be adopted for determining tax payable,
    • Inclusion or exclusion of amount in value of supply
    • Failure of transaction value.
  • Difficulty in ascertaining rate of tax due to:
    • Classification of goods / services.
    • Eligibility of exemption notifications.

Note: No other situations are covered under this, e.g. uncertainty about kind of tax IGST/CGST/SGST.

♦ Process:

  • Provisional assessment can be made only upon a written request made by the registered person in FORM GST ASMT 01 electronically
  • PO may issue notice in FORM GST ASMT 02 wherein it requires the person seeking provisional assessment.
  • Applicant has to file a reply to the notice in FORM GST ASMT 03.
  • After considering reply PO has to pass order in FORM GST ASMT 04, either rejecting or allowing. Such order should also indicate the amount for which bond has to be executed by taxable person , which shall not exceed 25% of the bond amount.
  • Tax payer will execute the bond in FORM GST ASMT 05 along with security in the form of bank guarantee.
  • After all PO shall issue a notice in FORM GST ASMT 06, calling information to finalize the assessment and pass the final assessment.
  • After that PO would issue a final assessment order in FORM GST ASMT 07.
  • The finalization of assessment has to be completed, within a period of 6 months (extendable by AC/JC/Commissioner) from the date of communication of provisional assessment order.
  • If amount payable is more than tax already paid then, tax with interest will be paid and if tax payable is less than tax already paid then, tax amount will be refunded along with interest.
  • After that FORM GST ASMT 08 will file for release of security furnished
  • Finally PO will release security and issue FORM GST ASMT 09 within 7 days from FORM GST ASMT 08.

5. Scrutiny assessment:

♦ This section deals with discretionary power of PO .

♦ It is pre-adjudication process

♦ During scrutiny, discrepancies if any noticed has to be communicated via notice to person in FORM GST ASMT 10, seeking information within maximum 15 days.

The notice also contains details of tax, interest or any other amount paid.

♦ This section authorized registered person to receive and respond in FORM GST ASMT 11 by paying tax, interest and any other amount of tax.

♦ Where the explanation furnished by the registered person or the information submit is found to be acceptable, the proper officer shall inform him accordingly in FORM GST ASMT-12.

6. Assessment of non-filers of returns:

♦ Pre condition of assessment under this non filing of return by tax payer.

♦ For which notice u/s 46 will be issued.

♦ After that by taking into account all the relevant material available on record, issue as assessment order, known as “best judgment assessment”.

♦ However , if registered person furnishes return within 30 days form issue of assessment order then such order is deemed as withdrawn.

♦ Order u/s 62 (i.e. best judgment) can be issued within 5 years .

♦ Amount payable under this act includes late fees u/s 47 and interest u/s 50.

7. Assessment of unregistered persons:

♦ This section is applicable to unregistered person i.e. person who are liable to obtain registration, fail to take registration, registration was cancelled.

♦ For assessment under this section , notice has to be issued in FORM GST ASMT-14 by the PO.

♦ Registered person is allowed a time of 15days to furnish his reply in FORM GST ASMT-15.

8. Summary assessment in certain special cases:

♦ Denoted as fast track assessment.

♦ It is used to denote those assessments which are completed ex-parte and on priority basis when there is reason to believe that there is loss of revenue, if such assessment is delayed.

♦ This assessment can be done if PO must have proper evidence that there is tax liability and PO has obtained prior permission of AC/JC.

♦ The summary assessment order should be in FORM GST ASMT-16

♦ The person may file an application for withdrawal of the summary assessment order in FORM GST ASMT–17 within 30 days.

♦ The order of withdrawal or, as the case may be, rejection of the application will be issued in FORM GST ASMT-18.

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Qualification: CA in Job / Business
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Location: Delhi, New Delhi, IN
Member Since: 16 Sep 2017 | Total Posts: 25
I am member of ICAI since Novemer, 2011. Having experience in Taxation and public speaking. i also posted few videos on you tube for GST. View Full Profile

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