The Assessment Procedure Under GST

GST Assessment Procedure

GST is the highlight of the season. And why will it not be? A tax regime as this isn’t the kind of a change you see often. While the country awaits the GST implementation, here’s something more about the procedure- the procedure of assessment. To bring ease and facilitate hassle free calculation and tax payment, GST has provisions of assessment just like the present indirect tax system has.

GST Model Law explains the effects of non-filing of returns, short payments, demand and recovery provisions etc.

To calculate the tax liability, here are different kinds of assessment under GST.

  • Self Assessment
  • Provisional Assessment
  • Scrutiny Assessment
  • Summary Assessment in special cases
  • Assessment of Non-Filers of return
  • Assessment of unregistered Dealer

Let’s dive into the details:

  • Self Assessment

Every taxpayer shall himself assess the tax liability and file the tax return for each period. Just like the present tax regime of VAT and Service tax, GST provides the provision of Self Assessment too.

  • Provisional Assessment
    • A taxpayer will file application in Form GST ASMT-01 along with supporting documents on provisional basis if the taxpayer is unable to determine the tax due to value or rate of tax.
    • Proper Officer will issue notice in Form GST ASMT-02 demanding the person to appear or furnish further details and documents.
    • The reply shall be filed by the applicant in form GST ASMT-03.
    • The Proper Officer shall pass the order within 90 days allowing the taxpayer to pay tax at such rate as given in the order in form GST ASMT-04. Proper Officer also has the authority to reject the application giving the grounds of rejection.
    • Proper Officer may bind the person to pay differential tax between provisional and final tax liability by way of surety or bond.
    • The bond shall be executed by the registered person in form GST ASMT-06.
    • Notice shall be issued by Proper Officer in from GST ASMT-06 calling for final assessment.
    • Within six months of passing the order in form GST ASMT-07, the Proper Officer shall pass the final assessment order specifying the amount payable or refundable.

Can the Extension of Period be provided?

Yes, there is a provision of extension of period. However, for availing the extension of period under GST, sufficient reasons should be recorded in written.

  1. Further 6 months by Joint Commissioner or Additional Commissioner.
  2. Further 4 years by Commissioner.

Applicant may file an application in Form GST ASMT-08 for release of security.

Proper Officer shall release the security and issue order in Form GST ASMT-09 within seven working days from the receipt of application.

  • Scrutiny of Returns

Scrutiny of returns takes place to verify the correctness of returns. It is mandatory for the Proper Officer to scrutinize the returns.

If the explanations are satisfactory, no further actions shall be taken.

If the explanations are not satisfactory, the Proper Officer has the authority to take action if

  • There is no satisfactory explanation within 30 days by the taxpayer
  • The taxpayer does not rectify the discrepancies within the reasonable given time.

Following actions can be taken:

  • 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
  • Summary Assessment in special cases

This is done when the Proper Officer believes some suspicious grounds for delay in filing returns which may impact the revenue. Proper Officer passes the summary assessment with prior permission of Additional/Joint Commissioner.

  • Assessment of Non-Filers of return

If the person does not file the following returns, it shall fall under Assessment of Non-Filers of return:

  • TDS Return
  • TCS Return
  • Final Return u/s 45
  • Monthly Return
  • Return of Inward Supplies
  • Return of Outward Supplies
  • Return by non-resident person
  • Return by input service provider
  • Return to comply with the notice u/s 46
  • Assessment of unregistered Dealer
    • The person who is liable for registration but hasn’t obtained the registration yet
    • The person whose registration has been cancelled by the authority but is liable to pay tax

The Proper Officer may pass the Best Judgement assessment within 5 years.

Also Read: Offences & Penalty Provisions Under GST

Here’s the procedure for Assessment of unregistered Dealer:

Step 1: Issuing of Notice in form GST ASMT-14.

Step 2: Give 15 days’ time to reply.

Step 3: Passing of order in form GST ASMT-15.

Therefore, GST Model Law has assessment provisions much like the present indirect tax regime and ensures ease of compliance and filing of returns.

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