Assessment meaning and types in GST

Types of Assessment in GST-
Self Assessment
Provisional Assessment
Scrutiny of Returns
Assessment of Non-filers
Assessment of Unregistered persons
Summary Assessment

1. Assessment in GST
By
CA MukeshSharma
At NIRC-PrashantViharon 10
th
July, 2017
[email protected]
10/07/2017

2. IntermsofSection2(11)oftheAct,
“assessment” means
determination of tax liability
under this Act and
includes self-assessment, re-assessment, provisional as sessment, summary
assessmentandbestjudgementassessment.
Types of Assessments
Sec 59 Self-assessment. Sec 60
Provisional assessment
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Sec 60
Provisional assessment
Sec 61 Scrutiny of returns
Sec 62 Assessment of non-filers of returns
Sec 63 Assessment of unregistered persons
Sec 64 Summary assessment in certain special cases

3. Sec 59 Self-assessment IEvery registered taxable person
Ishall himself assess the taxes payable under this A ct and
Ifurnish a return for each tax period as specified u nder Section 39.
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4. Sec 60 Provisional Assessment Sec60(1)
Subjecttoprovisionofsub-section(2),Wherethetaxablep ersonisunable
Itodetermine
thevalue
ofgoodsorservicesorbothor
Itodetermine
therateoftax
applicablethereto,
he mayrequest the proper officerin writing giving reasons for payment
of
tax
on
a
provisional
basis
of
tax
on
a
provisional
basis
and
theproperofficer
shallpassanorder
withinaperiod
notlaterthanninety
days
from the date of receipt of such request, allowing payment of tax on
provisionalbasisatsuchrateoronsuchvalueasmaybespecifiedbyhim.
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5. Provisional assessment can be made only upon a written
request
made by the
registered person
in FORMGST ASMT-01
electronically through common
portal,
alongwith
thedocuments insupport ofhisrequest.
Theprovisionalassessmentcannotberesorted tobytheProperOfficeronsuo-
motubasis.
The proper officer may, issue a
notice
in
FORMGST ASMT-02
wherein it
requires the registered person seeking provisional assess mentto appear in
person or furnish additional informationor documents in support of his
request
.
request
.
Theapplicant hastofilea
replytothenotice
in
FORMGSTASMT–03.
After considering the reply filed, the proper officer has to
pass an order
in
FORMGST ASMT- 04
, either rejecting the application, stating the grounds for
suchrejection orallowing payment oftaxonprovisional bas is.
Such order should indicate the value or the rate or both on the basis of which
theprovisional assessment istobemade.
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6. Sec60 ProvisionalAssessment Sec60(2)
Thepaymentoftaxonprovisionalbasis
maybe
allowed,
if the taxable person executes a bond in such formas may be prescribed,
andwithsuchsuretyorsecurityastheproperofficermaydeemfit,
binding
the
taxable
person
for
payment
of
the
difference
between
the
binding
the
taxable
person
for
payment
of
the
difference
between
the
amount of tax as may be finally assessed and the amount of tax
provisionallyassessed.
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The registered person has to execute a bond in FORM
GST ASMT-05 along with a security in the form of a bank
guarantee as ordered.

7. Sec60 ProvisionalAssessment Sec60(3)
finalassessmentorder in6monthsorinextendedtime
Theproperofficershall,withinaperiodnotexceedingsixmonthsfromthe
dateofthecommunicationofthe
order
issuedundersub-Section(1),
pass the final assessment order
after taking into account such information
asmayberequiredforfinalizingtheassessment.
For this purpose, the proper officer shall issue a notice in FORM GST ASMT
-
06, calling for information and records required fo r finalization of
PROVIDED that the period specified in this sub-Section may, on sufficient
causebeingshownand
forreasonstoberecordedinwriting,
be extended by the Joint/Additional Commissioner for a furt her period not
exceedingsixmonths
and bytheCommissionerforsuchfurtherperiodnotexceedingfouryears.
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ASMT
-
06, calling for information and records required fo r finalization of
assessment.

8. Sec60 ProvisionalAssessment Sec60(4)
Interestonanytaxpayable
The registeredperson shall be liable to pay interest on any tax payableon
the supply of goods or services or both under provisional ass essment but
notpaidontheduedatespecifiedundersubsection(7)ofsection39orthe
rules made there under at the rate specified under sub-Secti on (1) of
Section 50, or both from the first day after the due date of pay ment of tax
in respect of the said supply of goods and/orservices till th e dateofactual
payment,
whether
such
amount
is
paid
before
or
after
the
issue
of
order
payment,
whether
such
amount
is
paid
before
or
after
the
issue
of
order
forfinalassessment.
Sec60(5)
InterestonRefund
Wheretheregisteredpersonisentitledtoarefundconsequenttotheorder
for final assessment under sub-Section (3), subject to sub- Section (8) of
Section54,interestshallbepaidonsuchrefundasProvidedinSection56.
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9. Afterthattheproperofficerwouldissueafinalassessmentorderin
FORM
GST ASMT-07,
specifying the amount payable by the registered person or
theamountrefundable,ifany.
The applicant may file an application in
FORMGST ASMT- 08
for the
releaseofthesecurityfurnished.
The
proper
officer
shall
release
the
security
furnished
under
sub
-
rule
(
4
),
The
proper
officer
shall
release
the
security
furnished
under
sub
-
rule
(
4
),
afterensuring that the applicant has paid the amount specif ied in sub-rule
(5) and
issue an order in FORMGST ASMT–09
within a period of seven
workingdaysfromthedateofthereceiptoftheapplication
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10. Sec61ScrutinyofReturns (1) The proper officer may scrutinize the return and related particulars furnished by
theregistered personto verify the correctness of the return and inform him of the
discrepancies noticed, if any in such manneras may be prescr ibed and seek
explanation thereto.
(2) In case the explanation isfound acceptable,the registered person shall be
informed accordingly and no furtheraction shall be taken in this regard.
(3) In case no satisfactory explanation is furnished within a period of thirty days of
being informed by the proper officer or such further period a s may be permitted by
him or where the taxable person, after accepting the discrep ancies, fails to take the
corrective measure in his return for the month in which the di screpancy is
accepted,the proper officer may initiate appropriate action including those under
Section 65, 66 or Section 67, or proceed to determine the tax a nd other dues under
sub-Section (7) of Section 73 or Section 74.
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11. Rule99.Scrutinyofreturns.- (1)Where any return furnished by a registered person is sele cted for scrutiny,
the proper officer shall scrutinize the same in accordance w ith the
provisions of section 61 with reference to the information a vailable with
him, and in case of any discrepancy, he shall issue a notice to the said
person in FORMGST ASMT-10, informing him of such discrepancy and
seeking hisexplanation thereto within such time, notexcee ding thirty days
from the date of service of the notice or such further period a s may be
permitted by him and also, where possible, quantifying the a mount of tax,
interestandanyotheramountpayableinrelationtosuchdiscrepancy.
(2) Theregisteredpersonmayacceptthediscrepancymentionedinthenotice
issued under sub-rule (1), and pay the tax, interest and any o ther amount
arising from such discrepancy and inform the same or furnishan
explanation for the discrepancy in FORMGST ASMT- 11 to the proper
officer.
(3) Where the explanation furnished by the registered person or the
information submitted under sub-rule (2) is found to be acce ptable, the
properofficershallinformhimaccordinglyinFORMGSTASMT-12.
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12. Sec62.Assessmentofnon-filersofreturns (1) Notwithstanding anything to the contrary contained in s ection 73 or
section 74,where a registered taxable person fails to furni sh the return
requiredunderSection39orSection45,
evenaftertheserviceofanotice
underSection46,
the proper officer may proceed to assess the tax liability of the said
person to the
best of his judgement
taking into account all the relevant
material which is available or which he has gathered and issu e an
assessment
order
within
the
period
of
five
years
limit
from
the
date
assessment
order
within
the
period
of
five
years
limit
from
the
date
specifiedofSection44forfurnishingoftheannualreturnforthefinancial
yeartowhichthetaxnotpaidrelates.
(2) Where the registered person furnishes a valid return within thirty days of
the service of the assessment order under sub-Section (1), t he said
assessmentordershallbedeemedtohavebeenwithdrawn.
Butthe liability for payment of interest under subsection (1) o f section 50
orforthepaymentoflatefeeundersection47shallcontinue..
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13. Sec63.Assessmentofunregisteredpersons
Notwithstanding anything to the contrary contained in sect ion 73 or
section74,
Iwhere a taxable personfails to obtain registration even though liable to
doso,or
Iwhose registration has been cancelled under sub section (2) of section 29
butwhowasliabletopaytax,
the proper officer may proceed to assess the tax liability of such taxable
person
to
the
best
of
his
judgement
for
the
relevant
tax
periods
and
issue
person
to
the
best
of
his
judgement
for
the
relevant
tax
periods
and
issue
anassessment order within a period of five years from the date specified
under section 44 for furnishing of the annual return for the f inancial year
towhichthetaxnotpaidrelates.
Provided thatno such assessment order shall be passed witho ut giving the
personanopportunityofbeingheard
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14. Sec64.Summaryassessment incertainspecialcases (1) The proper officer may, on any evidence showing a tax liab ility of a person
coming to his notice, with the previous permission of Additi onal/Joint
Commissioner, proceed to assess the tax liability of such pe rson to protect the
interest of revenue and issue an assessment order, if he has s ufficient grounds
to believe that any delay in doing so will adversely affect th e interest of
revenue.
Provided that where the taxable person to whom the liability pertains is not
ascertainable
and
such
liability
pertains
to
supply
of
goods,
the
person
in
ascertainable
and
such
liability
pertains
to
supply
of
goods,
the
person
in
charge of such goods shall be deemed to be the taxable person l iable to be
assessed andpaytaxandanyotheramountdueunder thissection.
(2) On any application made by the taxable person within thir ty days from the
date of receipt of order passed under sub-Section (1) or on hi s own motion, if
the Additional/Joint Commissioner considers that such ord er is erroneous, he
may withdraw such order and follow the procedure laid down in Section 73 or
section74.
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15. Sec100.Assessment incertaincases. (1) The order of assessment made under sub-section (1) of sec tion 62 shall be
issuedinFORMGSTASMT-13.
(2) The proper officer shall issue a notice to a taxable perso n in accordance with
the provisions of section 63 in FORM GST ASMT-14 containing t he grounds on
which the assessment is proposed to be made on best judgment b asis and
after allowing a time of fifteen days to such person to furnis h his reply, if any,
passanorderinFORMGSTASMT- 15.
(
3
)
The
order
of
summary
assessment
under
sub
-
section
(
1
)
of
section
64
shall
be
(
3
)
The
order
of
summary
assessment
under
sub
-
section
(
1
)
of
section
64
shall
be
issuedinFORMGSTASMT-16.
(4) The person referred to in sub-section (2) of section 64 ma y file an application
forwithdrawal ofthesummaryassessment orderinFORMGSTASMT–17.
(5) The order of withdrawal or, as the case may be, rejection o f the application
undersubsection (2)ofsection 64shallbeissued inFORMGSTASMT-18.
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16. [email protected]
10/07/2017
CA MukeshSharma
Email: [email protected]
Mob: [phone]