Assessment and Audit

GST- Assessment and Audit
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Assessment means determination of tax liability.

There are several types of assessments in the GST regime i.e., self-assessment,
provisional assessment, summary assessment and best judgment assessment.
SELF ASSESSMENT (Sec 59)

Every person registered under the Act shall himself assess the tax payable by him
for a tax period and after such self-assessment, he shall file the return required under
section 39.
PROVISIONAL ASSESSMENT (Sec 60)
Provisional assessment provides a method for determining the tax liability in

case the taxable person is unable to
(a) determine the value of taxable goods and/or services; or
(b) determine the rate of tax applicable thereto at the time of supply.
 Application to proper officer

 Pay tax on Provisional basis
 Within 90 days officer issue order for payment of tax on provisional basis and
the amount* for which the bond is to be executed and security to be furnished.
The value of security cannot exceed 25% of the amount* covered under the
bond.
 The final assessment within 6 months from the provisional order
Period of 6 months may be extended:

(a) by the Joint/Additional Commissioner for a further period not exceeding
6 months, and
(b) by the Commissioner for such further period as he may deem fit not
exceeding 4 years
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Where the tax liability as per the final assessment is higher than the provisional
assessment,- The registered person has to pay tax along with interest from the date
the tax was due to be paid originally till the date of actual payment.
Where the tax liability as per the final assessment is less than in provisional
assessment- The registered person get refund with interest if delay greater than 60
days .
The proper officer shall release the security within 7 days from the date of application
submitted.
SCRUTINY OF RETURNS [SECTION 61]

The return furnished by a registered person may be selected for scrutiny by proper officer
to verify its correctness.
In case any discrepancy is found, Issue notice to the registered person and he shall reply
within 30 days from the date of service of notice.
In case no satisfactory explanation is furnished by registered person, proper officer may

take recourse to any of the following provisions, namely:
 Proceed to conduct audit under section 65 of the act;
 Direct the conduct of a special audit under section 66
 Undertake procedures of inspection, search and seizure under section 67 of the
act; or
 Initiate proceeding for determination of tax and other dues under section 73 or
74 of the act.
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ASSESSMENT OF NON-FILERS OF RETURNS[SECTION 62]

Best Judgment Assessment
Notwithstanding anything to the contrary contained in section 73 or section 74,

where a registered person−
fails to furnish the return under section 39 (monthly/quarterly) or under
section 45 (final return), and
a notice under section 46 has been issued by proper officer to the defaulting
taxable person requiring him to furnish the return within a period of 15
days and taxable person fails to file return within the given time;
the proper officer may proceed to assess the tax liability of said person (i.e.
Return Defaulter) to the best of his judgement taking into account all the
relevant material which is available or which he has gathered.
The Assessment Order shall be issued by Proper Officer within a period of 5
years from the date specified under section 44 for furnishing of the annual
return for the financial year to which the tax not paid relates.
Where the registered person furnishes a valid return for the default period within
30 days of the service of the assessment order passed on best judgment basis,
the said assessment order shall be deemed to have been withdrawn but the
liability for payment of interest under sub-section(1) of section 50 or for
payment of late fee under section 47 shall continue.
ASSESSMENT OF UNREGISTERED PERSONS[SECTION 63]

Same as registered person
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SUMMARY ASSESSMENT IN CERTAINSPECIAL CASES [SECTION 64]
Summary assessments can be initiated to protect the interest of revenue with the
previous permission of Additional Commissioner/Joint Commissioner when:
the proper officer has evidence that a taxable person has incurred a liability
to pay tax under the Act, and
the proper officer has sufficient grounds to believe that delay in passing an
assessment order may adversely affect the interest of revenue.
The summary assessment order and a summary thereof shall be uploaded
electronically in the prescribed form.
The Summary Assessment Order may be withdrawn by Additional

Commissioner/Joint Commissioner, –
(a) on an application filed by taxable person for withdrawal of the summary
assessment order within 30 days from the date of receipt of order; or
(b) on his own motion, where he finds such order to be erroneous and may
instead follow the procedures laid down in section 73 or section 74 to
determine the tax liability of such taxable person.
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.
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AUDIT BY TAX AUTHORITIES [SECTION 65]
Audit of any registered person may be undertaken by:

the Commissioner; or
any officer authorised by him, by way of a general or a specific order,
The period of audit could be for a financial year or part thereof or multiples
thereof.
Where it is decided to undertake the audit of a registered person, the proper

officer shall issue a notice not less than 15 working days prior to the conduct
of audit.
Commencement of audit means the later of the following:
a) the date on which the records/accounts called for by the audit authorities
are made available to them, or
b) the actual institution of audit at the place of business of the taxpayer.
The audit is required to be completed within 3 months from the date of commencement
of audit. The period is extendable for a further period of a maximum of 6 months by the
Commissioner.
On conclusion of audit, the proper officer shall within 30 days inform the registered
person whose records are audited, about the audit findings and the reasons for such
findings.
Where the audit results in detection of tax not paid or short paid or erroneously
refunded, or input tax credit wrongly availed or utilised, the proper officer may
initiate action under section 73 or section 74.
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SPECIAL AUDIT [SECTION 66]

If at any stage of scrutiny, inquiry, investigation or any other proceedings before him,
any officer not below the rank of Assistant Commissioner, having regard to the nature
and complexity of the case and the interest of revenue, is of the opinion that –
the value (of goods and/or services ) has not

been correctly declared; or
the credit availed is not within the normal limits,
 he may, with the prior approval of the Commissioner, issue a direction to the
registered person to get his records including books of account examined and
audited by a chartered accountant or a cost accountant as may be nominated
by the Commissioner and specified in the said direction.
 The Chartered Accountant or cost accountant as nominated by Commissioner
shall submit a report of such audit duly signed and certified by him within the
period of 90 days to the said Assistant Commissioner mentioning there in such
other particulars as may be specified:
The Assistant Commissioner may extend the said period 90 days by a further
period of 90 days −
on an application made to him in this behalf by the registered person or
the chartered accountant or cost accountant; or for any material and
sufficient reason
The expenses of the examination and audit of records including the remuneration of
such Chartered Accountant or Cost Accountant, shall be determined and paid by the
Commissioner and such determination shall be final
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GST- Assessment and Audit

Assessment means determination of tax liability.

SELF ASSESSMENT (Sec 59)

PROVISIONAL ASSESSMENT (Sec 60)

Provisional assessment provides a method for determining the tax liability in

 Application to proper officer

Period of 6 months may be extended:

SCRUTINY OF RETURNS [SECTION 61]

In case no satisfactory explanation is furnished by registered person, proper officer may

ASSESSMENT OF NON-FILERS OF RETURNS[SECTION 62]

Notwithstanding anything to the contrary contained in section 73 or section 74,

ASSESSMENT OF UNREGISTERED PERSONS[SECTION 63]

SUMMARY ASSESSMENT IN CERTAINSPECIAL CASES [SECTION 64]

The Summary Assessment Order may be withdrawn by Additional

AUDIT BY TAX AUTHORITIES [SECTION 65]

Audit of any registered person may be undertaken by:

Where it is decided to undertake the audit of a registered person, the proper

SPECIAL AUDIT [SECTION 66]

the value (of goods and/or services ) has not

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