Provisional assessment under GST

If 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 officer for payment of tax on a provisional basis and the officer shall pass an order, within 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.

The officer may allow for payment of tax on provisional basis subject to execution of bond along with surety or security as the officer may deem fit, binding the taxable person for difference of tax if any.

The office within six months shall pass the final assessment order after taking into account such information as may be required for finalizing the assessment. Final Assessment can be extended for six months by the Joint/Additional Commissioner. However, the Commissioner can extend it for further four years as he seems fit.

The registered person will have to pay interest on any tax payable under provisional assessment which was not paid within the due date. Interest period will be calculated from the day when tax was first due on the goods/services (and not from the date of provisional assessment) till the actual payment date, irrespective of payment being before or after final assessment. Rate of interest will be eighteen per cent

If the tax as per final assessment is less than provisional assessment then the registered person will get a refund. He will also get interest on refund .Rate of interest will be six per cent

Forms for provisional assessment under GST

Form GST ASMT- 01

  • This form is available for the use of registered person
  • This is an application form for Provisional order under section 60
  • The registered person shall furnish an application along with the documents in support of his request, electronically, in FORM GST ASMT- 01 on the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner.

Form GST ASMT- 02

  • This is for the use of tax officers
  • This form is a notice for seeking additional information, clarification, and documents.
  • The officer may, on receipt of the application for provisional order, issue a notice in FORM GST ASMT- 02 requiring the registered person to furnish additional information or documents in support of his request for provisional order.

Form GST ASMT- 03

  • This is the form for use of the registered person
  • This form is a reply to the seeking of additional information,clarification, and documents of FORM GST ASMT- 02
  • the applicant shall file a reply to the notice in FORM GST ASMT – 03 and may appear in person before the said officer.

Form GST ASMT- 04

  • Form GST ASMT-04 is for the tax officials
  • This is an order for the payment of tax on a provisional basis
  • After satisfaction, officer will issue order in Form GST ASMT-04, within 90 days of furnishing request allowing the payment of tax on a provisional basis indicating the value or the rate or both on the basis of which the provisional assessment is to be allowed. and the amount for which the  bond is  to be executed and security to be furnished  twenty five per cent  of bond amount.

Form GST ASMT- 05

  • This is for the taxpayer for furnishing of security
  • The Bond to be furnished in form GST ASMT-05 and security to be furnished in the form of a bank guarantee.

Form GST ASMT- 06

  • Available for the use of tax officers
  • This form is a notice for seeking information and record  for final assessment
  • The officer shall issue a notice in form  GST ASMT-06 for calling information and recoed for finalizing the assessment.

Form GST ASMT- 07

  • Available for the use of tax officers
  • This is a final assessment order
  • The proper officer shall issue final assessment order in Form GST ASMT-07 specifying the amount payable or refundable to a registered person.
  • If the balance tax is payable then interest to be paid by registered person eighteen per cent.
  • on payment of excess amount of tax the registered person will get refund with interest six per cent

Form GST ASMT- 08

  • This is the form for use of the registered person
  • This form is an application for withdrawal of security for the taxpayer
  • The applicant may file an application in Form GST ASMT 08 for the release of security after issue of the final assessment order.

Form GST ASMT- 09

  • This form available for the tax officers
  • The officer shall release the security after ensuring that the applicant has paid the amount and issue an order in Form GST ASMT 09 within a period of seven days from the date of the receipt of the application release of the security.

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March 2021