Assessment under CGST ACT
Section2 (11) “assessment” means determination of tax liability under this Act and includes
• Self-assessment, (Section 59)
• Provisional assessment, (Section 60)
• Summary assessment (Section 64) and
• Best judgment assessment; (Section 62)
SELF-ASSESSMENT [SECTION 59]
• 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.
• This assessment is possible only if:
• Registered person is able to assess the value
• Registered person is able to assess the tax payable
PROVISIONAL ASSESSMENT [SECTION 60]
• Provisional Assessment: Where a registered taxable person is unable to determine the value of goods and/or services or determine the rate of tax applicable thereto.
• Registered person may make application to PO
• 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
• Tax liability is discharged on provisional basis subject to finalization of assessment by the department.
• The bond needs to be executed in prescribed format along with surety or security as prescribed by the specified officer.
• The proper officer within a period of 6 months or within the extended period of 6 months, will pass the final assessment order.
• Once assessment is finalized the taxable person becomes liable to pay the difference along with interest and for excess payment of tax, application for refund to be made.
SCRUTINY OF RETURNS [SECTION 61]
• The returns will be scrutinized by the proper officer.
• Proper officer will inform the discrepancies and seek clarification.
• If explanation found satisfactory/acceptable, no further action shall be take.
• If no satisfactory explanation: Within a period of 30 days or extended period or taxable person fails to take corrective action, the Proper Officer may take recourse to any of the following provisions:
• Proceed to conduct audit under Section 65 of the Act;
• Direct the conduct of a special audit under Section 66;
• Undertake procedures of inspection, search and seizure under Section 67 of the Act; or
• Initiate proceeding for determination of tax and other dues under Section 73 or 74 of the Act. (Demand and Recovery)
ASSESSMENT OF NON-FILERS OF RETURNS [SECTION 62]
• This section empowers the Proper officer to make Best Judgment Assessment if
Registered person fails to furnish the
return under section 39 or
final Return under section 45
• The best judgment order passed by the Proper Officer under section 62 shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of the receipt of the best judgment assessment order.
ASSESSMENT OF UNREGISTERED PERSONS [SECTION 63]
Section 63 of CGST Act provides that in case a person who is liable to pay tax but has failed to obtain registration, or whose registration has been cancelled under Section 29(2) of the Act but who was liable to pay tax, the proper officer exercising jurisdiction over such person can assess his tax liability and pass an order to his best judgment for the relevant tax periods.
SUMMARY ASSESSMENT IN CERTAIN SPECIAL CASES [SECTION 64]
• Summary Assessments can be initiated to protect the interest of revenue
• When the proper officer has evidence and believes that delay in passing an assessment order will adversely affect the interest of revenue.
• Such order can be passed after seeking permission from the AC/JC.
• Where the taxable person: Cannot be ascertained- person in charge of such goods (deemed to be the taxable person).
• A taxable person against whom a summary assessment order has been passed can apply for its withdrawal: To the jurisdictional AC/JC within thirty days of the date of receipt of the order. (Suo moto action also possible)
Assessment under CGST ACT