GST Including Assessment

Goods and Service Tax or GST will consolidate all indirect taxes under one umbrella and help Indian businesses become globally competitive. GST is a trust-based taxation regime wherein the assessee is first required to self- assess his tax liability and furnish returns for declaring the taxable turnover, tax payable or refundable, input tax credit availed etc.. At this stage, there is no intervention by the tax officials. Since the tax regime relies on self-assessment, there is a need to put in place a robust ‘audit’ mechanism in order to measure and ensure proper compliances of the provisions of law by the taxable person.

Below are the different types of assessment under GST.

• •  Self-assessment: 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: 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.
  •  Scrutiny assessment :The return furnished by a registered person may be selected for scrutiny by proper officer to verify its correctness. Where any return furnished by a registered person is selected for scrutiny, the proper officer shall scrutinize the same with reference to the information available with him and may issue notice in case of any discrepancies.
  •  Assessment Of Unregistered Persons: Not with standing anything to the contrary contained in section 73 or section 74, where a registered person−
    
    • a. fails to furnish the return under section 39 (monthly/quarterly) or under section 45 (final return), and
    • b. 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 to the best of his judgement taking into account all the relevant material which is available or which he has gathered.

• • •  Assessment of non-filers of returns: Assessment of unregistered persons Notwithstanding anything to the contrary contained in section 73 or section 74, where a taxable person−
      
      • • a. fails to obtain registration even though liable to do so; or
        • b. Whose registration has been cancelled under sub-section(2) of section 29,

      But who was liable to pay tax, the proper officer may proceed to assess the tax liability of said unregistered person to the best of his judgement for the relevant tax periods.

  • •  Summary assessment: Summary assessments can be initiated to protect the interest of revenue with the previous permission of Additional Commissioner/Joint Commissioner when:
      
      • a. the proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act, and
      • b. the proper officer has sufficient grounds to believe that delay in passing an assessment order may adversely affect the interest of revenue.

Our Professionals at Meru & Associates on receiving necessary authorization from the client will facilitate effective and qualitative submission and representation before tax authorities in response to GST assessment and appeals.