ASSESSMENTS AND AUDITS

1. Assessments

The GST laws prescribe different proceedings for assessing the tax liability of the tax payers. These are briefly described below:

1. Self -Assessment (S.59)

   Every registered person is required to self-assess his / her tax liability and furnish a periodical return as may be specified.

2. Provisional Assessment (S.60)

   Where a taxable person is unable to determine value of supply or rate of tax, he may apply to the Proper Officer (PO) for payment of tax on provisional basis. The PO shall pass an order within period of 90 days from date of receipt of request allowing the tax payer to pay tax on provisional basis at such rate or on such value as the PO may specify; For this purpose, the taxable person shall execute a bond (with surety or security) for payment of difference between amount of tax provisionally assessed and finally assessed. The PO shall pass a final assessment order within 6 months. The payment of tax provisionally or finally assessed will be subject to levy of interest.

3. Scrutiny of returns (S.61)

   The (PO) may scrutinize the returns to verify its correctness and inform discrepancies noticed to registered person and seek his explanation thereto. If explanation received is satisfactory then no further action shall be taken. If, however, the explanation received is not satisfactory or where the registered person after having accepted the discrepancy fails to take corrective action, then the PO may initiate action under other provisions of the GST law.

4. Assessment of non-filers of returns (S.62)

   If registered person fails to furnish return including the final return, the PO may assess tax liability of such person on best judgement basis within 5 years from the date specified u/s 44 for furnishing of the annual return. If valid return is furnished by registered person within 30 days of service of assessment order, then the above assessment order shall be deemed to be withdrawn.

5. Assessment of unregistered persons (S.63)

   Where taxable person fails to obtain registration or whose registration is cancelled but who was liable to pay tax, then the PO may assess tax liability to the best of his judgement within 5 years from the date specified u/s 44 for furnishing of the annual return.

6. Summary Assessment (S.64)
   • If PO has any evidence showing tax liability of a person, he may, to protect the interest of revenue, proceed to assess the tax liability of such person to protect interest of revenue and issue an assessment order, if he has sufficient grounds to believe that any delay may adversely affect the interest of revenue.
   • If person to whom liability pertains is not ascertainable the person in charge of goods can be assessed.

2. Audits