Assessment of Non-filers of Return under Section 62 of CGST Act

Where a registered person fails to furnish monthly or quarterly returns under Section 39 or the final return under Section 45, a notice in Form GSTR-3A shall be issued by the proper officer requiring him to furnish such returns within 15 days under Section 46.

According to Section 62, when the registered person fails to furnish the return within the prescribed time limit even after the service of a notice under Section 46, the proper officer may proceed to assess the tax liability of the said person to the best of his judgment, taking into account all the relevant material that is available or that he has gathered, and issue an assessment order in Form GST ASMT-13 and summary thereof shall be uploaded electronically in Form GST DRC-07 within a period of 5 years from the due date for furnishing the annual return for the financial year to which the tax not paid relates, under Section 44.

Where the registered person furnishes a valid return within 30 days of the service of the assessment order issued under section 62, the said order shall be deemed to have been withdrawn, but the liability for payment of interest under sub-section (1) of section 50 or for payment of late fees under section 47 shall continue.

Accordingly, the registered person can file the return within a period of 30 days from the date of the assessment order issued under section 62 with applicable interest and late fees and the assessment order issued based on best judgement will be withdrawn.

Reference: High Court Judgement of Judicature at Madras with reference to W.P.Nos. 34770, 34774, and 34777 of 2023 and W.M.P.Nos. 34756, 34761, and 34748 of 2023. 

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Disclaimer: This article is only for the purpose of understanding the provisions of the Act, The author bears no responsibility on decisions taken by the readers whatsoever.  E&OE.