What are the different types of Assessment under GST?
The different types of assessment under GST are as under:
Section 59 – Self assessment The taxable person is required to pay tax on the basis of self-assessment done by him. Hence, all GST return filings are based on self-assessment by the taxpayer. In other words; Every registered taxable person shall himself assess the taxes payable and furnish a return for each tax period.
Section 60 – Provisional assessment Provisional assessment can be conducted for a taxable person when the taxpayer is unable to determine the value of goods or service or both or determine the rate of tax applicable thereto. Provisions of Provisional Assessment
- Requests for provisional assessments will be given in writing
- The proper officer can allow paying tax on provisional basis at a rate or on a value specified by him.
- Order will be passed within 90 days from date of request.
- The taxable person has to issue a bond with a security promising to pay the difference between provisionally assessed tax and final assessed tax.
Provisional assessments will be followed by final assessments. The proper officer can ask for information before final assessment. Time Limit for Final Assessments
The final assessment will be done within 6 months of the provisional assessment. This can be extended for 6 months by the Joint/Additional Commissioner. However, the Commissioner can extend it for further 4 years as he seems fit.
Interest on Additional Tax Payable and Refunds
The tax payer 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 the date of provisional assessment) till the actual payment date, irrespective of payment being before or after final assessment. Rate of interest will be maximum 18%.
If the tax as per final assessment is less than provisional assessment then the taxable person will get a refund. He will also get interest on refund.
Rate of interest will be maximum 6%.
Section 61 – Scrutiny of tax returns GST Officers can scrutinize a GST return and related particulars furnished by the registered person to verify the correctness of the return. This is called a scrutiny assessment. In case there is any discrepancies noticed by the officer, he/she would inform the same to the registered person and seek his explanation on the same. On the basis of the explanation received from the registered person, the officer can take following action: i) If the explanation provided is satisfactory, the officer will inform about the same to the registered person and no further action will be taken in this regard. ii) If the explanation provided is not satisfactory, The proper officer will take action-
If the taxable person does not give a satisfactory explanation within 30 days Or
He does not rectify the discrepancies within a reasonable time (not yet prescribed)
The officer may-
- Conduct audit of the tax payer u/s 65
- Start Special Audit procedure u/s 66
- Inspect and search the places of business of the tax payer
- Start Demand and Recovery provisions.
Section 62 – Assessment of non-filiers of tax returns When a registered person fails to furnish the required returns, even after service of notice under Section 46 an assessment would be conducted by the GST Officer. In such cases, the GST officer would proceed to assess the tax liability of the taxpayer to the best of his judgement taking into account all the relevant material which is available or which he has gathered and issue an assessment order within a period of five years from the date for furnishing of the annual return for the financial year to which the tax not paid relates. On receipt of the said assessment order, if the registered person furnishes a valid return within a period of 30 days from the date of issuance of assessment order, then in such case, the assessment order would deemed to have withdrawn. However, the registered person will be liable to pay interest under Section 50 (1) and/or liable to pay late fee under Section 47.
Section 63 – Assessment of unregistered persons When a taxable person fails to obtain GST registration even though liable to do so or whose registration has been cancelled under section 29 (2) but who was liable to pay tax, the GST officer can proceed to assess the tax liability of such taxable person to the best of his judgment for the relevant tax periods and issue an assessment order within a period of five years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates. The proper officer may proceed to assess the tax liability of such person to the best of his judgment considering all the relevant material he has gathered within a period of 5 years from the due date of furnishing annual return for the financial year for which tax not paid relates. For passing the assessment order under this section, the proper officer will issue a notice in form ASMT-14, containing the grounds on which assessment is proposed to be made and after considering the reply proper officer will issue order in form ASMT-15.
Section 64 – Summary assessment The authorized office is required to obtain prior permission of additional commissioner or joint commissioner to take this assessment. To protect the interest of revenue, a GST officer can proceed to assess the tax liability of a person showing a tax liability with any evidence . The officer can also issue an assessment order id he has proof that the delay in assessment can adversely affect the interest of revenue.
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