Self-Assessment under GST, Importance , Liabilities, Tips & Precautions

Introduction of Self-Assessment under GST

Self-assessment under the Goods and Services Tax (GST) regime is a key feature that empowers taxpayers to assess their tax liabilities and file returns independently. It is a shift from the pre-GST era where assessments were largely conducted by tax authorities.

GST law is a voluntary compliance-based taxation system. One of the key features of GST is its self-assessment system. The entire responsibility for assessment of tax liability has been entrusted upon with the taxable person or the Business entity in line and spirit of the GST laws.

The standard norm in tax laws is to make the supplier responsible for tax assessment, because the supplier alone is aware of the details of his supply and all elements of value that are relevant for arriving at taxable value. This means that taxpayers are required to self-assess their tax liability and file their returns accordingly.

Assessment under GST is a crucial process that helps to ensure that taxpayers are complying with the GST laws and regulations. The law has put onus of self-assessment on the taxpayers with a strong compliance verification mechanism in place to ensure that the tax liabilities are discharged appropriately and in time. The officer will step into the area of assessment of tax liabilities only in cases the legislation warrants him to do so in specified situations.

The taxable event under the Goods and Services Tax (GST) law is ‘supply’ of goods or services or both. That is, GST is payable when a person supplies goods or services or both to another person. The person supplying goods and/or services, called as ‘supplier’, has to pay the tax into the Government account by following the procedure laid down in the CGST Rules, 2017. The person liable to pay tax is commonly referred as ‘taxpayer’.

Under the GST law, self-assessment of the tax payable on supply of goods or services or both is provided under Section 59 of the CGST Act, 2017. Periodical returns, as specified under Section 39 of the CGST Act, 2017 has to be furnished by the taxable person for each tax period by the taxpayer, declaring the details of supplies made, its value, tax payable, input tax credit availed, tax paid, etc. The returns filed by the taxpayer depict the compliance of tax payment for the relevant period. (Section 59 of CGST Act, 2017) (Section 39 of CGST Act, 2017)

As per Section 2(11) of CGST Act, 2017 ‘assessment’ means determination of tax liability and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment. Such assessments are subject to proceedings involving observance of principles of natural justice. (Section 2(11) of CGST Act, 2017)

The word assessment is used in a comprehensive sense and includes all proceedings, starting with the filing of the return or issue of notice and ending with the determination of the tax payable by the taxpayer and its recovery by the proper officer.

Key Points:

1. Taxpayer Responsibility: Under GST, the responsibility for calculating tax liability, claiming input tax credit (ITC), and filing returns lies primarily with the taxpayer. This means that businesses must maintain accurate records and ensure compliance with GST provisions on their own.
2. Trust-Based System: GST operates on a trust-based model where taxpayers are trusted to comply with the law. The government relies on taxpayers to declare their tax liabilities truthfully and file their returns accurately.
3. Periodic Filing: Taxpayers must file various returns periodically, such as GSTR-1 (outward supplies), GSTR-3B (summary return), and annual returns (GSTR-9)& (GSTR-9C) , depending on their turnover and nature of business.
4. ITC Claims: Under self-assessment, taxpayers can claim ITC based on their purchases and inward supplies, provided they meet the conditions laid out in the GST law. However, incorrect or ineligible ITC claims can lead to penalties and interest.
5. Compliance Rating: GST law includes a provision for assigning a compliance rating to taxpayers based on their adherence to filing and payment timelines. A good compliance rating can be beneficial for businesses in various ways, including faster refunds.

IMPORTANCE OF ASSESSMENT UNDER GST

Assessment under GST is important for various reasons. It ensures that taxpayers are complying with the GST laws and regulations, which enables the taxpayer to run his business smoothly. Assessment also helps in detecting any errors or discrepancies in the returns filed by the taxpayers, thus, preventing tax evasion. Besides, assessment helps educate taxpayers on the correct procedures for calculating and paying their taxes and thus, improves GST compliance.

Assessment under the Goods and Services Tax (GST) is a critical aspect of the tax framework, serving as the foundation for ensuring compliance, transparency, and accuracy in the taxation process. Here’s why assessment under GST is so important:

1. Ensures Accurate Tax Payment:

• Self-Assessment: Under GST, taxpayers are responsible for calculating their own tax liabilities. Proper assessment ensures that the correct amount of tax is paid, neither underpaid nor overpaid. This helps in maintaining the integrity of the tax system.
• Avoidance of Penalties: Accurate assessment and timely payment of tax help businesses avoid penalties, interest, and legal consequences that can arise from underpayment or non-payment of taxes.

2. Facilitates Compliance:

• Regular Filing: Regular assessment through periodic returns (such as GSTR-1, GSTR-3B, and annual returns) ensures that businesses stay compliant with GST laws.
• ITC Claim Validation: Proper assessment is crucial for claiming Input Tax Credit (ITC). It ensures that ITC is claimed only on eligible inputs and that all conditions for availing ITC are met.

3. Enables Efficient Record-Keeping:

• Transaction Documentation: Assessment encourages businesses to maintain detailed records of transactions, which is essential for both tax compliance and business operations.
• Audit Readiness: Accurate assessment and proper documentation make businesses audit-ready, helping them avoid complications during any scrutiny or audit by tax authorities.

4. Promotes Transparency:

• Trust-Based System: GST operates on a trust-based system where taxpayers are expected to assess their liabilities and file returns honestly. This promotes transparency in the tax system, benefiting both the taxpayer and the government.

Public Revenue Integrity: Accurate assessment helps in safeguarding public revenue by ensuring that the correct amount of tax is collected, which can then be utilized for public welfare.

5. Minimizes Legal Disputes:

• Reduces Litigation: Proper assessment helps in minimizing disputes between taxpayers and tax authorities. When taxes are accurately assessed and paid, the likelihood of notices, litigation, or disputes is significantly reduced.
• Clarity in Taxation: Assessment under GST provides clarity on tax liabilities, reducing ambiguities that could otherwise lead to legal challenges.

6. Supports Government Revenue Collection:

• Revenue Generation: Accurate and timely assessment ensures that the government collects the revenue it is due, which is critical for funding public services and infrastructure projects.
• Fiscal Health: Consistent and accurate assessment by taxpayers contributes to the overall fiscal health of the economy by ensuring a steady flow of revenue.

7. Assists in Policy Formulation:

• Data-Driven Insights: The data generated through GST assessments provide valuable insights to policymakers. This data can be used to assess the effectiveness of current tax policies and to formulate future tax policies.
• Economic Analysis: Assessment data help in understanding economic trends, such as consumption patterns and sectoral growth, enabling better economic planning and decision-making.

8. Enhances Business Reputation:

• Goodwill: Consistently accurate assessment and compliance with GST can enhance a business’s reputation with customers, suppliers, and tax authorities.
• Compliance Rating: In the GST regime, businesses with good compliance records may receive a higher compliance rating, which can be advantageous in various ways, including faster processing of refunds.

Assessment under GST is vital for ensuring the accuracy of tax liabilities, facilitating compliance, and promoting transparency. It plays a key role in minimizing legal disputes, supporting government revenue collection, and providing valuable data for policy formulation. For businesses, accurate assessment under GST not only helps avoid penalties and interest but also enhances their reputation and trustworthiness in the market.

COMMON ERRORS COMMITTED WHILE DISCHARGING TAX LIABILITY

It is crucial to understand the common errors the taxpayers are making while filing

the statutory returns. These errors can result in incorrect assessment which ultimately

lead to short payment or non-payment of tax. Some of the common errors made

while filing the returns are as under:

Discharging tax liability under the Goods and Services Tax (GST) regime can be complex, and taxpayers often commit errors that can lead to penalties, interest, or legal scrutiny. Here are some common errors:

1. Incorrect Classification of Goods/Services:

• Wrong HSN/SAC Codes: Using incorrect Harmonized System of Nomenclature (HSN) codes for goods or Service Accounting Codes (SAC) for services can lead to incorrect tax rates being applied.
• Misclassification: Misclassifying goods or services under the wrong category can result in underpayment or overpayment of GST.

2. Errors in ITC Availment:

• Ineligible ITC Claims: Claiming Input Tax Credit (ITC) on ineligible items, such as personal expenses, blocked credits (e.g., motor vehicles, personal consumption), or goods/services used for exempt supplies.
• Non-Reconciliation with GSTR-2A/2B: Failing to reconcile ITC claimed with GSTR-2A/2B can result in discrepancies, leading to disallowance of ITC.
• Delayed ITC Claims: Not claiming ITC within the stipulated time period (usually the earlier of the filing of annual return or the 30^TH day of November following the end of the financial year) can result in a loss of ITC.

3. Incorrect Calculation of Tax Liability:

• Wrong Tax Rate Application: Applying incorrect tax rates to supplies, either due to misclassification or oversight, leading to underpayment or overpayment of GST.
• Failure to Account for RCM: Not accounting for Reverse Charge Mechanism (RCM) liabilities or incorrectly calculating them can result in underpayment of tax.
• Errors in Turnover Reporting: Incorrect reporting of turnover, either by excluding some supplies or over-reporting, can lead to wrong tax calculations.

4. Non-Payment of Tax on Time:

• Missed Due Dates: Failing to pay tax within the due date, resulting in interest and penalties.
• Partial Payment: Paying only a portion of the tax liability and carrying forward the balance to the next period without settling the liability can attract penalties.

5. Mistakes in Filing Returns:

• Data Entry Errors: Mistakes in entering data, such as incorrect invoice numbers, GSTINs, or tax amounts, can lead to discrepancies in returns.
• Omitting Transactions: Failing to include all taxable transactions in the return, such as forgetting to report inter-state sales in GSTR-1, leading to underpayment of tax.
• Filing Incorrect Returns: Filing returns with incorrect details or underreporting can trigger scrutiny and demand notices.

6. Errors in Utilizing ITC:

• Incorrect ITC Utilization Sequence: Not following the prescribed sequence for utilizing ITC (IGST first, then CGST and SGST) can result in incorrect offset of liabilities.
• Utilizing Excess ITC: Utilizing more ITC than available in the electronic credit ledger can lead to penalties and interest.

7. Failure to Consider Exemptions/Thresholds:

• Ignoring Exemption Limits: Failing to account for exemption thresholds, especially for small suppliers, resulting in unnecessary payment of GST.
• Wrongfully Availing Exemptions: Claiming exemptions without meeting the necessary conditions, leading to underpayment of tax.

8. Issues with RCM Compliance:

• Not Discharging RCM Liability: Failing to discharge RCM liability for transactions where it is applicable (e.g., imports, specified services).
• Incorrect RCM Payments: Making incorrect payments under RCM, such as paying less or more than the actual liability.

9. Non-Compliance with E-Way Bill Requirements:

• E-Way Bill Errors: Not generating an E-Way Bill for applicable transactions or generating it with incorrect details, which can lead to penalties and potential seizure of goods.

10. Not Maintaining Proper Documentation:

• Lack of Supporting Documents: Not maintaining proper invoices, debit/credit notes, and other documents can lead to difficulties in substantiating claims during audits or assessments.
• Improper Record-Keeping: Incomplete or inaccurate record-keeping can lead to errors in tax calculation and return filing.

Common errors in discharging tax liability under GST can have significant financial and legal consequences. These include incorrect classification of goods/services, errors in ITC claims, mistakes in return filing, and non-compliance with RCM and e-way bill requirements. To avoid these pitfalls, it’s essential to maintain accurate records, stay updated with GST provisions, and regularly reconcile accounts.

SELF-ASSESSMENT (Tax payers assessment)

Self assessment is  the types of assessment under GST which is done by the taxpayer themselves .Section 59 of the CGST Act, 2017, provides that every registered person shall self-assess the taxes payable and furnish the prescribed return for each tax period. This is the first level of assessment, which is done by the taxpayers themselves. In self-assessment, the taxpayer calculates and declares his tax liability in the returns filed and pays his tax liability at the time of filing the return. This is done on a monthly, quarterly or annual basis, depending on the turnover of the taxpayer. (Section 59 of CGST Act, 2017)

Self-Assessment does not confer authority of an assessing officer on the taxpayer. A taxpayer is required to exercise this liberty to assess tax liability voluntarily with the risk of interest and penalty for any miscalculations or misinterpretations without usurping the role of proper officer.

If the taxpayer discovers any omission or incorrect particulars in the returns furnished by him, other than the omissions or commissions pointed out by the proper officer consequent to scrutiny of return or audit or inspection or incorrect particulars, then the taxpayer has to rectify such omissions or incorrect particulars and pay the differential tax, if any, along with interest.

The rectification mentioned above is allowed to be carried out only till the 30th day of November following the end of financial year to which such omissions or incorrect particulars pertain to or the actual date of filing of the Annual Return of the relevant financial year, whichever is earlier.

Precautions at the time of Self assessment:-

Self-assessment under GST requires careful attention to detail to ensure compliance and avoid future liabilities. Here are some precautions to take during the self-assessment process:

1. Accurate Classification of Goods and Services:

• Verify HSN/SAC Codes: Ensure that the correct Harmonized System of Nomenclature (HSN) or Service Accounting Codes (SAC) are used for classifying goods and services to apply the correct tax rates.
• Check Latest Updates: Regularly check for updates or changes in the classification of goods/services, as misclassification can lead to incorrect tax payments.

2. Proper Calculation of Tax Liability:

• Review Tax Rates: Ensure that the correct tax rates are applied based on the nature of the goods or services supplied.
• Include All Supplies: Account for all taxable supplies, including inter-state and intra-state transactions, to avoid underreporting.
• Consider Reverse Charge Mechanism (RCM): Identify transactions where RCM is applicable and ensure the correct calculation and payment of RCM liabilities.

3. Careful Availment of Input Tax Credit (ITC):

• Eligibility Check: Before claiming ITC, verify that the credit is eligible as per GST law, considering factors like the nature of goods/services and their use in taxable supplies.
• Reconcile with GSTR-2A/2B: Regularly reconcile ITC claims with GSTR-2A/2B to ensure that the ITC claimed matches the details provided by your suppliers.
• Timely Claiming: Ensure ITC is claimed within the time limit prescribed by the law to avoid losing eligible credit.

4. Thorough Reconciliation of Accounts:

• Match Books with Returns: Reconcile your financial books with GST returns (GSTR-1, GSTR-3B, etc.) to ensure consistency and accuracy.
• Monthly/Quarterly Reconciliation: Perform monthly or quarterly reconciliations to catch discrepancies early, reducing the risk of errors in the annual return.

5. Timely and Accurate Filing of Returns:

• Adhere to Deadlines: File all GST returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-9C etc.) within the prescribed deadlines to avoid late fees and penalties.
• Double-Check Data Entries: Review all entries carefully before submitting returns to avoid common mistakes like incorrect GSTIN, invoice numbers, or tax amounts.
• Include All Transactions: Ensure that all taxable transactions are included in the returns, particularly sales, purchases, and reverse charge liabilities.

6. Proper Utilization of ITC:

• Follow Utilization Sequence: Utilize ITC in the correct order—first IGST, then CGST and SGST, as prescribed by law.
• Avoid Excess Utilization: Do not utilize more ITC than what is available in your electronic credit ledger to avoid penalties and interest.

7. Maintain Proper Documentation:

• Keep Invoices and Records: Maintain all necessary documents such as tax invoices, debit/credit notes, e-way bills, and purchase orders to substantiate your claims and declarations.
• Digital Backups: Keep digital backups of all records and invoices to ensure they are preserved and accessible during audits or scrutiny.

8. Compliance with Reverse Charge Mechanism (RCM):

• Identify RCM Liabilities: Regularly check for transactions liable under RCM, particularly those involving unregistered suppliers or specified services.
• Pay RCM on Time: Discharge RCM liabilities promptly using cash (ITC cannot be used) and report them accurately in the returns.

9. Monitor E-Way Bill Compliance:

• Generate E-Way Bills Correctly: Ensure that e-way bills are generated for all applicable transactions and that the details match the corresponding invoices.
• Track E-Way Bills: Keep track of e-way bills to ensure compliance during transportation and avoid penalties.

10. Regular Internal Audits:

• Conduct Periodic Audits: Regularly audit your GST compliance to identify and rectify any errors or discrepancies early.
• Consult with Professionals: Engage with GST consultants or professionals for complex transactions or ambiguities to avoid costly mistakes.

11. Stay Updated with GST Law:

• Monitor GST Notifications: Keep track of changes in GST laws, notifications, circulars, and amendments that could impact your tax liabilities or compliance requirements.
• Training and Awareness: Ensure that your accounting and finance team is well-trained and aware of the latest GST rules and regulations.

12. Use of GST Tools and Software:

• Leverage Technology: Use reliable GST compliance software to automate and streamline the return filing, reconciliation, and ITC management processes, reducing the risk of manual errors.
• Regular Updates: Ensure that the software is regularly updated to reflect the latest GST rules and rates. 

Taking these precautions during self-assessment under GST helps in accurate tax payment, correct ITC claims, and overall compliance, thereby minimizing the risk of penalties, interest, and legal complications. Regular reconciliation, proper documentation, timely filing, and staying updated with GST laws are key to successful self-assessment.

While discharging the tax liability on the supplies, a supplier has to ensure proper  compliance of the provisions related to classification of the supply of Goods and Services, applicable rate of tax, valuation of the supply, time of supply, place of supply, admissibility of exemption/concession granted by notification, if any, etc., so as to ensure proper payment of tax on such supplies.

Any short payment or non-payment of tax, wrong availment/utilization of input tax credit would lead to demand and determination of the amount of tax short-paid or not paid, amount of wrongly availed/utilized input tax credit. Any amount erroneously refunded shall also result in demand of such erroneously refunded amount.

The provisions of CGST Act, 2017 and CGST Rules, 2017, relevant to demand and determination of tax short paid or not paid, Input Tax Credit wrongly availed or utilized or amount erroneously refunded, should take into consideration.

Under self-assessment, there is a possibility of short-payment or non-payment of tax or incorrect availment of input tax credit by the taxpayer on account of various factors like incorrect rate of tax applied due to wrong classification of the supply, incorrect valuation, availing inadmissible exemption, availing inadmissible input tax credit, etc. There can be a case of erroneous refund of any amount to the taxpayer, which otherwise was not due to him. Further, there may be cases where, by reason of fraud, or willful-misstatement or suppression of facts, the tax amount has not been paid or short paid or input tax credit has been wrongly availed or utilized, with intent to evade tax, which has eventually led to improper discharge of the tax liability.

Most common reasons leading to improper discharge of tax liability are ;-

1. Mismatch in details reported in GSTR-1 Return and GSTR-3B Return

2. Difference in Input tax credit claims made in GSTR-3B vis-a-vis GSTR-2B/2A

3. Delay in filing of GSTR-1 and GSTR-3B

4. Inconsistent declaration in GSTR-1 and e-way bill portal

5. Inconsistencies in reporting of Exports in GSTR-1 with information available on ICEGATE. For example, Shipping Bill or the Bill of export lodged on ICEGATE but not reported in GSTR-1

6. Non-payment of GST liability (tax) or the short-payment of the tax with or without the intent to defraud

7. GST Refund is wrongly made with or without the intent to defraud

8. The input tax credit is wrongly availed or utilized

9. Where a business is liable to obtain GST registration but has failed and not discharged the tax and other liabilities under the CGST Act, 2017

10. Error in  assessment of Reverse Charge Liability.

The above-mentioned short payment or non-payment of tax or wrongly availed/ utilized input tax credit or erroneous refund can be detected by carrying out verification of the correctness of self-assessed tax, by conducting scrutiny of returns or during the course of Audit conducted on the records of the taxpayer or during enquiry or investigation initiated against the taxpayer.

Wrong determination of self assessment tax by the taxable persons authorizes the Proper Officer to demand and determine the following amounts under Central Goods and Services Tax (GST) Act, 2017,

(i) A tax which is not paid (Section 73 and Section 74)

(ii) A tax which is short paid (Section 73 and Section 74)

(iii) A tax which is erroneously refunded (Section 73 and Section 74)

(iv) Wrongly availed Input Tax Credit (Section 73 and Section 74)

(v) Wrongly utilized Input Tax Credit (Section 73 and Section 74)

(vi) A tax which is collected but not paid (Section 76)

(vii) A tax which is collected under the wrong head (Section 77).

Action to be taken under the provisions of GST law for recovery of the amount of tax not paid or short paid or Input Tax Credit wrongly availed/ utilized or amount erroneously refunded involves two major steps – to demand such amount by issuing a Show Cause Notice and then to determine the amount of tax, interest and penalty payable by adjudicating the Show Cause Notice, i.e. by passing an Order after following the prescribed procedure. If any short-payment or non-payment of tax or incorrect availment or utilization of input tax credit or erroneous refund of tax to the taxpayer is noticed during the above-mentioned verification, then such short-paid or not-paid tax or wrongly availed input tax credit or erroneous refund of tax shall be demanded from the taxpayer along with applicable interest by following the due process prescribed under the CGST Act, 2017 and the CGST Rules, 2017.

Section 73 of the CGST Act, 2017 is the relevant legal provision for demand and determination of the tax short-paid or not-paid or wrongly availed input tax credit or erroneously refunded amount, in cases not involving fraud or willful misstatement or suppression of facts. In cases involving fraud or willful misstatement or suppression of facts, such amount has to be demanded and determined under the provisions of Section 74 of the CGST Act, 2017. (Section 73 of CGST Act, 2017) (Section 74 of CGST Act, 2017)

There can be situations where the taxpayer has collected the tax amount from the recipient of goods and/or services, i.e. their customers, but the same is not deposited into the Government account. In such cases, the amount of tax collected but not paid or deposited in the Government account is required to be demanded and determined under Section 76 of the CGST Act, 2017. (Section 76 of CGST Act, 2017)

Conclusion of Self-Assessment under GST

When conducting self-assessment under GST, it’s crucial to be diligent to avoid future liabilities.

Here are some tips and precautions:

1. Reverse Charge Mechanism (RCM):

• Understand Applicability: Ensure you clearly understand when RCM is applicable, especially in cases of specified goods/services, unregistered suppliers, or import of services.
• Track RCM Payments: Maintain a separate ledger for tracking all RCM liabilities and payments made in cash, as ITC cannot be used for RCM payments.
• Timely Payment: Pay the RCM liability within the due date to avoid interest and penalties.

2. Filing of Returns:

• Regular Reconciliation: Reconcile your purchase register with GSTR-2A/2B to ensure that all ITC claims are accurate.
• File Timely: Ensure that all GST returns (GSTR-1, GSTR-3B, GSTR-9, etc.) are filed within the prescribed due dates to avoid late fees and interest.
• Error-Free Filing: Double-check for any errors or discrepancies in returns before filing. Even small errors can lead to notices or audit scrutiny.

3. Correct Availment of Input Tax Credit (ITC):

• Verify Supplier Compliance: Ensure that your suppliers are filing their returns and paying taxes on time. If they fail to do so, your ITC claim might be disallowed.
• Eligible ITC Only: Avail only eligible ITC as per GST law. Be cautious about blocked credits (e.g., motor vehicles, personal consumption, etc.).
• Documentation: Maintain proper documentation, such as tax invoices, debit/credit notes, etc., to substantiate ITC claims.

4. Utilization of ITC:

• Sequential Utilization: Follow the correct sequence of ITC utilization as prescribed under GST law—IGST first, then CGST and SGST.
• Check Ledger Balances: Regularly monitor your electronic credit ledger to ensure the correct utilization of ITC.
• Avoid Excess Utilization: Do not utilize more ITC than available; this could result in penalties and interest.

5. General Precautions:

• Regular Internal Audits: Conduct regular internal audits to identify and rectify any discrepancies early.
• Stay Updated: GST laws and rules are frequently updated. Stay informed about any changes that may affect your compliance.
• Consult Professionals: If there are complex transactions or uncertainties, consult a GST professional to avoid costly mistakes.

By these tips and maintaining meticulous records, you can minimize the risk of future liabilities under GST.

The conclusion of self-assessment under GST involves ensuring that all tax liabilities have been accurately assessed and discharged by the taxpayer, and that returns are filed within the due dates without errors. Here’s how it typically concludes:

1. Reconciliation and Adjustment: At the end of each tax period, taxpayers should reconcile their accounts, including sales, purchases, and ITC claimed, to ensure accuracy. Any discrepancies should be corrected in subsequent returns.
2. Final Return Filing: For the financial year, the annual return (GSTR-9) must be filed, summarizing the entire year’s transactions. This marks the conclusion of the self-assessment for that year.
3. Audit and Scrutiny: Although GST is based on self-assessment, tax authorities may conduct audits or scrutinize returns to verify the accuracy of the taxpayer’s self-assessment. In case of discrepancies, additional tax liabilities, penalties, or interest may be imposed.
4. Post-Assessment Rectification: If errors or omissions are discovered after the returns have been filed, taxpayers can rectify them in subsequent returns. However, there are specific time limits for such rectifications.
5. Compliance and Penalties: Consistent compliance with self-assessment obligations helps businesses avoid penalties, interest, and legal complications. Non-compliance can lead to audits, scrutiny, and potential legal action by tax authorities.
6. Continuous Monitoring: Even after filing, taxpayers should continuously monitor their compliance status, as any late discovery of discrepancies could attract interest and penalties.

Self-assessment under GST introduces a significant degree of autonomy and responsibility for taxpayers. It requires diligence in record-keeping, timely return filing, and accurate tax calculations. The conclusion of self-assessment, marked by final return filing and reconciliation, is crucial to ensuring compliance and avoiding future liabilities. Proper understanding and careful execution of self-assessment can result in a smooth compliance experience under GST.

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