Under CGST Act (hereinafter called as ‘the Act’), the term “assessment” means determination of tax liability. It includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment. Normally, persons having GST registration file GST returns and pay GST every month/Quarter, as the case may be based on self-assessment of GST liability. However, the Government at all times has the rights to re-assess or perform an assessment by itself and determine if there is any difference in GST liability payable and paid under the Act, which leads to short payment to Exchequer. In this article, we are going to look at the various types of assessment under this act in detail.

The different types of assessment under Goods and service tax are as follows:-

• Section 59 – Self assessment
• Section 60 – Provisional assessment
• Section 61 – Scrutiny of returns
• Section 62 – Assessment of non-filers of returns
• Section 63 – Assessment of unregistered persons
• Section 64 – Summary assessment in certain special cases

Section 59- Self Assessment 

Every registered person shall self-assess the tax payable under this act and furnish a return for each tax period as specified under section 39. 

It means that every registered person under GST is required to self-assess the tax for each tax period and file his return and pay the tax accordingly.  Section 39 states the time limit and return to be filed which is stated in below mentioned table-

 Section 60 – Provisional assessment 

Section 61 – Scrutiny of returns

(1) The proper officer may scrutinize (examine) the returns and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in Form GST  ASMT- 10  and seek his explanation thereto.

(2) In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.

(3) In case no satisfactory explanation is furnished within a period of 30 days of being informed by the proper officer or any extended period or where the registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, the proper officer may initiate appropriate action including those under section 65 (general audit by department)or section 66 (special audit by department)or section 67 (inspection, search & seizure), or proceed to determine the tax and other dues under section 73 or section 74 (Demand and Recovery).

Best Judgment Assessment

These type of assessment are initiated by the department when assesse is not willing to furnish requisite details or is trying to hide information from the department. There are two situations where these assessments can be initiated, namely:-

• Where the fails to furnish the return or disclose the correct tax ( section 62)
• Where person who is liable to get GST registration but fails to get the same (Section 63) 

Section 62 – Assessment of non-filers of returns

 (1) Where a registered person fails to furnish the return under section 39 (regular returns filed monthly/quarterly) or section 45 (final return), 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 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 the date specified under section 44 for furnishing of the annual return for the financial year.  

(2) Where the registered person furnishes a valid return within thirty 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 for payment of late fee shall continue.

Section 63 – 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 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 of the annual return for the financial year. However, no such assessment order shall be passed without giving the person an opportunity of being heard.

Section 64 – Summary assessment in certain special cases

(1) The proper officer may, on any evidence showing a tax liability of a person coming to his notice, with the previous permission of Additional Commissioner or Joint Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue and issue an assessment order, if he has sufficient grounds to believe that any delay in doing so may adversely affect the interest of revenue:

Provided that where the taxable person to whom the liability pertains is not ascertainable and such liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the taxable person liable to be assessed and liable to pay tax and any other amount due under this section.

(2) On an application made by the taxable person within thirty days from the date of receipt of order or on his own motion, if the Additional Commissioner or Joint Commissioner considers that such order is erroneous, he may withdraw such order and follow the procedure laid down in section 73 or section 74.

Assessments at a Glance