Assessment means determining tax liability under this CGST Act, 2017 and includes the following type of assessments:
Self AssessmentSummary AssessmentProvisional AssessmentScrutiny of ReturnsAssessment of Non FilersAssessment of Unregistered Persons
Every registered person is required to self-assess the taxes payable under this Act and furnish a return for each tax period. A provisional assessment is done when the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, and request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper officer shall pass an order, within a period not later than 90 days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him. Summary Assessment is done if an officer believes that any delay in assessment can adversely affect the interest of the revenue.
Provisional Assessment under GST
Q1. How is the assessment made if the taxable person is not able to determine the value of goods and/or services or determine the rate of tax?
Ans. Where the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, he may request the proper officer in writing giving 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 receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him.
Q2. Whether Self-Assessment and provisional assessment are mutually exclusive?
Ans. Yes, if the taxable person opts for self-assessment, he cannot opt for provisional assessment for the same period for same supply. However, he can opt for provisional assessment if he is unable to determine taxable value / tax liability/ (rate of tax) for any subsequent periods.
Q3. Whether proper officer can reject the application to provisional assessment submitted by taxable person?
Ans. Yes. The provisions relating to provisional assessments provides discretionary powers on the proper officer to pass an order allowing the taxable person to remit tax on provisional basis.
Q4. What conditions needs to be satisfied by a taxable person for assessment of taxes on provisional basis?
Ans. The proper officer may allow for payment of tax on provisional basis subject to execution of bond in prescribed form along with surety / security as the proper officer may deem fit binding the taxable person for differential tax if any.
Q5. What is the time limit for passing final assessment order in case of provisional assessment?
Ans. The proper officer shall, within a period of six months from the date of communication of the provisional assessment order, pass the final assessment order after taking into account such information as may be required for finalizing the assessment. However, the time limit of six months can be further extended on sufficient cause being shown and for reasons to be recorded in writing in the following manner:
a) by the Joint / Additional Commissioner for a further period of six months;(b) by the Commissioner for such further period not exceeding four years.
Q6. What are the consequences on conclusion of provisional assessment by way of passing final assessment order in so far as short / excess remittance of tax is concerned? Ans. The consequences on concluding the provisional assessment by way of passing final assessment order would be as follows:
(a) Additional tax liability: In case of short remittance of taxes in terms of final assessment order, the additional tax liability, if any should be remitted along with interest at the rate prescribed under Section 50(1) for delay in remittance of taxes viz., due date of remittance as prescribed under Section 39(7) till the date of actual payment;(b) Excess remittance of tax on provisional basis: In case of excess remittance of taxes in terms of final assessment order, the registered person is entitled to refund of such excess remittance in the manner as provided in Section 54(8) along with interest as provided under Section 56.
Summary assessment in certain special cases
Q7. Whether proper officer can proceed Suo-moto in assessing the tax liability of a any person on possession of relevant evidence? Ans. No, the proper officer has to obtain prior permission of Additional/Joint Commissioner to proceed to assess the tax liability. Q8. Whether the summary assessment can be initiated based on mere change in opinion of proper officer? Ans. No, mere change in opinion cannot be treated as evidence for initiation of summary assessment. Q9. Whether summary assessment can only be initiated on previously filed return (u/s 34 and u/s 40)? Ans. Summary assessment can be initiated on any taxable person. Submission of return u/s 39 and u/s 45 is not prerequisite. Q10. What is the remedy available to the taxable person if the order passed u/s 64 is erroneous? Ans. On an application made within thirty days by taxable person from the date of receipt of order passed summary assessment order the Additional/Joint Commissioner may withdraw such order and follow the procedure laid down in Section 73 or 74 which provides for determination of tax liability on account of tax not paid other than fraud, wilful mis-statement etc., or otherwise respectively. Q11. Whether the Additional / Joint Commissioner can withdraw the summary assessment order only on application by the taxable person? Ans. The Additional / Joint Commissioner can, on their own motion also withdraw the summary assessment order in the event such order is erroneous and thereafter may follow the procedure laid down in Section 73 or 74 which provides for determination of tax liability on account of tax not paid other than fraud, wilful mis-statement etc., or otherwise respectively Recommended Articles
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