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Types of Assessment under GST

CA Rashmi Gandhi 
Updated on 08 April 2021


Assessment is the process of determination of the tax liability of a taxpayer. There are different ways to determine tax liability under the GST law. GST Assessment is required to be done to establish the tax liability of an assessee. Taxation Laws lay down a process of assessment, i.e. a way to figure out exactly how much tax should be paid.

Assessment under GST

'Assessment' means determination of tax liability under Central Goods and Services Tax Act, 2017 and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment.

Sections 59 to 64 of Chapter XII under Central Goods & Services Tax Act, 2017 deals with an important aspect, namely, 'Assessment' .

Types of Assessment under GST

  • Self-assessment
  • Provisional assessment
  • Scrutiny assessment
  • Best judgment assessment
    •  Assessment of non-filers of returns
    •  Assessment of unregistered persons
  • Summary assessment

1. Self Assessment

Self GST assessment is available to every registered taxable person to assess the tax payable by him for any tax period. Thus, determination of tax liability is to be undertaken by the taxpayer himself and stated in the return to be filed by him.

The return is required to primarily contain inward supplies in Form GSTR 2 and outward supplies in Form GSTR 1 of goods/services, Input Tax Credit, tax payable and tax paid. Hence, the furnishing of the return shall mean self-assessment of the taxpayer.

2. Provisional Assessment

Reason of Provisional Assessment

Provisional GST assessment can be invoked by a taxable person by making a request/application to the assessing officer in case he is not able to determine the

  • value of the supplies
  • tax rate applicable to such supplies

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.

Order of Provisional Assessment

Final Assessment

The final GST assessment will be done within 6 months of the provisional assessment which can be extended for additional 6 months by the Joint/Additional Commissioner. However, the Commissioner can further extend it for 4 years on his discretion.

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%.

3. Scrutiny Assessment

The Proper Officer can scrutinize the return and related furnished particulars to verify the correctness of the return and inform about any discrepancies noticed and seek explanations.

If the officer finds the explanation satisfactory then the taxable person will be informed and no further action will be taken.

If the taxable person does not give a satisfactory explanation within 30 days or he does not rectify the discrepancies within a reasonable time, 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

4. Best Judgement Assessment

Assessment of non-filers of returns

Where a registered person not furnish the return even after receiving notice for filing return, then the proper officer may proceed to assess the tax liability of the said person 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 date of furnishing of the annual return.

Where the registered person furnishes a valid return within 30 days of the service of the assessment order, the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest or late fee.

Assessment of unregistered persons

Where a taxable person fails to obtain registration even though liable to do so or whose registration has been cancelled but who was liable to pay tax, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgment and issue an assessment order within a period of five years from the date of furnishing of the annual return for the financial year to which the tax not paid relate. No such assessment order shall be passed by proper officer without giving the person an opportunity of being heard.

5. Summary assessment

Proper officer with previous permission of Additional Commissioner or Joint Commissioner, determines the liability of the assessee on the basis of returns filed by the taxpayer and other evidence in the possession of the assessing officer. Proper officer issue an assessment order if he has reason to believe that any delay in doing so may adversely affect the interest of revenue.

If it is not possible to ascertain the person to whom liability arises on supply of goods pertains, then the person in charge of such goods shall be deemed to be the taxable person & he is liable to pay tax and any other amount due.

If the Additional Commissioner or Joint Commissioner, on an application within 30days of order by taxable person or on his own motion, considers that such order is erroneous, he may withdraw such order.

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