There are various types of assessments under GST like self-assessment, provisional assessment, summary assessment and best judgement assessment. Assessment refers to determination of tax liability. An assessee under GST should self-assess his tax liability and furnish returns to declare tax payable etc.<\/p>\n\n\n\n
From Section 59 to 64, various types of assessments have been notified. Let’s discuss them one by one.<\/p>\n\n\n\n
Every registered person is required to assess tax liability himself and furnish a return.<\/p>\n\n\n\n
In case person is not able to determine value of supply or rate of tax, then payment of tax on provisional basis<\/a> on implementation of bond on a request.<\/p>\n\n\n\n To verify the accuracy of return, the proper officer shall examine return and seek explanations. In case where the explanation provided is adequate, there would be no further action. In case of no adequate explanation or no corrective measures, the proper officer may initiate audit\/inspection.<\/p>\n\n\n\n In case where the return is not furnished even after service of notice under section 46, the proper officer will evaluate the tax liability within a period of 5 years from the date mentioned under section 44 for furnishing annual return.<\/p>\n\n\n\n The proper officer, to the best of his judgement, shall issue an assessment order within a 5 year period from the date mentioned under section 44 for furnishing of the annual return.<\/p>\n\n\n\n The proper officer can issue an assessment order imposing the liability of tax on a person based on any evidence showing tax liability.<\/p>\n\n\n\n ACTION BY TAXPAYER <\/strong><\/p>\n <\/strong><\/p>\n<\/td>\n PENALTY AMOUNT PAYABLE<\/strong><\/p>\n <\/strong><\/p>\n<\/td>\n<\/tr>\n Normal cases<\/strong><\/p>\n<\/td>\n Fraud cases<\/strong><\/p>\n<\/td>\n<\/tr>\n Tax amount with interest paid before notice is issued<\/p>\n<\/td>\n No penalty and no notice<\/p>\n<\/td>\n 15% tax amount payable as penalty<\/p>\n <\/p>\n<\/td>\n<\/tr>\n Tax amount with interest paid within 30 days of notice issuance<\/p>\n<\/td>\n No penalty.<\/p>\n All proceedings deemed to be concluded<\/p>\n<\/td>\n 25% tax amount payable as penalty.<\/p>\n All proceedings deemed to be concluded<\/p>\n <\/p>\n <\/p>\n<\/td>\n<\/tr>\n Tax amount with interest paid within 30 days of order communication<\/p>\n<\/td>\n 10% tax amount or 10k rupees, whichever is higher<\/p>\n<\/td>\n 50% tax amount payable as penalty.<\/p>\n All proceedings deemed to be concluded<\/p>\n <\/p>\n<\/td>\n<\/tr>\n Tax amount with interest paid after 30 days of order communication<\/p>\n<\/td>\n 10% tax amount or 10k rupees, whichever is higher<\/p>\n<\/td>\n 100% tax amount<\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n Assessments under GST have been initiated by the GST department<\/strong>[1]<\/strong><\/a><\/sup> therefore, the assessee should understand the assessment nature and should be ready to provide response. The Assessee is advised to maintain proper documents of all aspects and be prepared for scrutiny from the department.<\/p>\n\n\n\nSection 65 and 66: Audits<\/h3>\n\n\n\n
AUDIT BY TAX AUTHORITIES<\/strong><\/td> SPECIAL AUDIT<\/strong><\/td><\/tr> The commissioner or the officer certified by him can undertake audit of any unregistered person <\/td> To be conducted at any stage of scrutiny, inquiry, investigation<\/td><\/tr> Audit can be conducted at the place of business or in their office<\/td> If the officer not below the rank of assistant commissioner believes that the value hasn’t been declared correctly\/the credit benefited is not within the normal limit<\/td><\/tr> 15 days notice should be provided<\/td> Can nominate a Chartered Accountant or a Cost Accountant<\/td><\/tr> Time period- 3 days from the conduct of audit <\/td> Time period- 90 days<\/td><\/tr> Extension: not exceeding 6 months <\/td> Extension: 90 days<\/td><\/tr> The registered person would be informed regarding the findings, rights and obligations<\/td> Even if the accounts have been audited, audit will be conducted<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Section 73 and 74<\/h3>\n\n\n\n
\n\n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Time limit for the issuance of notice and order: Assessments under GST<\/h2>\n\n\n\n
NATURE OF THE CASE<\/strong><\/td> TIME FOR THE ISSUANCE OF NOTICE<\/strong><\/td> TIME FOR ISSUANCE OF ORDER<\/strong><\/td><\/tr> Normal case<\/td> In 2 years and 9 months from the due date of Annual return filing for the Financial Year (F.Y) to which the demand pertains or from the date of erroneous refund<\/td> In 3 years from the due date of Annual return filing for the Financial Year (F.Y) to which the demand pertains or from the date of erroneous refund<\/td><\/tr> Fraud cases<\/td> In four years and six months from the due date of Annual return filing for the Financial Year (F.Y) to which the demand pertains or from the date of erroneous refund<\/td> In 5 years from the due date of filing Annual return for the Financial Year (F.Y) to which the demand pertains or from the date of erroneous refund<\/td><\/tr> Amount collected as tax but not paid<\/td> No time limit<\/td> Within a year from the date of issuance of notice<\/td><\/tr> Non-payment of self assessed tax<\/td> No issuance of SCN<\/td> The recovery proceedings can start directly<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Conclusion<\/h2>\n\n\n\n