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Assessment in GST

Types of Assessment under GST:

The type of assessment are provided under GST Law are as follows:

a) Self Assessment

b) Provisional Assessment

c) Scrutiny of Returns

d) Assessment of Non-Filer of Returns

e) Assessment of unregistered persons

f) Summary assessment in special cases

Self Assessment:

Self Assessment as the name suggests is a process whereby a person first assesses, tax payable by him, pays the tax and then files the return furnishing the details of how he has arrived at the tax payable by him. 

The assessment as made by the registered person would be treated as final.

Provisional Assessment:

Provisional Assessment of a person would be conducted on the request of the registered person in either of the two circumstances:

  • He is unable to determine the value of the goods or services or both.

Scrutiny of Returns:

Scrutiny of returns would be conducted to verify correctness of information furnished in the return.

How would the assessment of persons who do not file return, be completed?

If a registered person fails to to furnish return within the prescribed period or even after issue of notice for submission of return, proper officer can proceed to assess such person to the best of his judgement after taking into account all the materials available on record.

However, if registered person submits a valid return within 30 days of the service of said order, the assessment order made would be withdrawn.

Whether Provisional Assessment would be Final Assessment?

The provisional assessment would be subject to final assessment. Final assessment would have to be passed within a period of 6 months from the date of communication of the order for provisional assessment.

What would be the process of Scrutiny of Returns?

The proper officer would inform registered person of the discrepancies noticed during the course of scrutiny of returns. The proceedings would be dropped if the explanation submitted by the registered person is found acceptable.

However, if no explanation is furnished within the stipulated period by the registered person or no corrective action is taken by the registered person after accepting discrepancy, proper officer may initiate appropriate action against the registered person.

How would the assessment of unregistered person be made?

If a taxable persons fails to take registration even though he is liable to take registration or a person whose registration has been cancelled, even though such person was liable to pay tax, proper officer can proceed to assess such person to the best of his judgement after taking into account all the materials available on record.

Such assessment can be made within a period of 5 years from the due date of filing of annual return for the financial year for which tax has not been paid.

When and how Summary assessment can be completed against a person?

Where a proper officer has any evidence against a person showing his liability to pay tax under the Act, such officer can with the previous permission of the prescribed officer, assess the tax liability of such person to protect the interest of the revenue.

The proper officer should have sufficient grounds to believe that any delay in assessing such person would adversely affect the interest of the revenue.

Whether there would be audit by the department under GST ?

The department may undertake audit of any registered person for such period and at such frequency as may be prescribed.

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Disclaimer: This information is updated till 21 July 2017.

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