The term “Assess” means computing the income of the Assess, determining the tax payable by him, and then following the procedure for collection and recovery of such tax.
As per the provisions of section 2(11) of the CGST Act, the term “Assessment means a determination of the tax liability under this act and includes self-assessment, re-assessment, provisional assessment, summary assessment, and best judgment assessment.
Let us discuss the various types of Assessments under the CGST Act:
- Self-Assessment under section 59 of the CGST Act:
As per the provisions of the CGST Act, every registered taxable person shall self-assess the taxes payable under this act and is required to furnish a return for each tax period as specified under the applicable provisions of the Act.
All the GST return filings by the taxpayers are filed on the basis of self-assessment.
- Provisional Assessment under section 60 of the CGST Act:
Provisional Assessment is opted for when the taxable person is unable to determine the value of goods or services or both or is not able to determine the rate of tax applicable thereto.
Provided that in such an instance, the taxable person may request the proper officer in writing give reasons for payment of tax on a provisional basis, and the proper officer shall pass an order, within a period not later than ninety days from the date of the receipt of such a request, allowing the payment of tax on a provisional basis at such rate or on such value as may be specified by him as stated under the section 60 of the act.
- Scrutiny Assessment under section 61 of the CGST Act:
As per the provisions of the CGST Act, the proper officer may scrutinize the return and related particulars furnished by the registered person in order to verify the correctness of the filed return and inform him about the discrepancies noticed, if any, in such a manner as may be prescribed and also the proper officer can seek his explanation in relation to the discrepancies found. Provided that,
-if the explanation provided is found acceptable, then the taxable person shall be intimated accordingly and no further action is taken,
– if no satisfactory explanation is provided within a prescribed time period of thirty days or such further prescribed time period as may be allowed or where the registered person after accepting the discrepancies, fails to take the corrective action, the proper officer may initiate appropriate action as prescribed under the act or may proceed to determine the tax and other dues.
- Best Judgment Assessment under sections 62 & 63 of the CGST Act:
The Assessment under the Best Judgment is basically for the non-filers of the GST Returns.
- Best judgment Assessment for Registered persons under section 62 of the CGST Act:
Provided that, if a registered taxable person fails to furnish the return under the prescribed sections 39 and 45, even after the service of notice for the same under section 46, the proper officer may proceed to assess the tax liability of such person to the best of his judgment after taking into account all the material available or which he has gathered and issue an assessment order within a period of the five years from the date as specified under the section 44 for furnishing of the annual return for the particular financial year to which the tax not paid relates.
- Best Judgment Assessment of Unregistered Persons under Section 63 of the CGST Act:
Provided that, where a taxable person fails to obtain registration even when he was liable to do so or whose registration has been canceled under the CGST Act but who was liable to pay the tax, in such a case the proper officer may 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 the annual return for the financial year to which the unpaid tax relates.
It is to be noted that, no assessment order shall be passed without giving a show-cause notice and reasonable opportunity of being heard to such taxable person.
- Summary Assessment under Section 64 of the CGST Act:
This type of Assessment is allowed only to safeguard the interest of revenue if the delay is likely to adversely affect revenue. Henceforth, Summary Assessment is an exceptional power.
Under Summary Assessment, the proper officer may, on any evidence showing tax liability of a person coming into notice, with the prior permission of the Additional/ Joint Commissioner under the Act, may proceed to assess the tax liability of such a person in order to protect the interest of the revenue.
It is to note that as per sections 160& 161 of the CGST Act, Assessment or Re-Assessment:
- Cannot be invalidated on basis of the minor grounds.
- Notice cannot be challenged if acted upon.
- Errors that are apparent from the records can be rectified.
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