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GST Assessment means the determination of tax liability under GST law. It includes self-assessment, re-assessment, provisional assessment, summary assessment, and best judgment assessment. Normally, persons having GST registration file GST returns and pay GST every month based on self-assessment of GST liability. However, the Government at all times has the rights to re-assess or perform an assessment by itself and determine if there is a short payment of GST.
Estimating the GST liability of your small company is a very important step in compliance with the GST. The method of assessing the tax liability of a taxpayer is known as the GST assessment. To make this easy, the Government of India has given five ways to measure the GST liability.
The taxable person is required to pay tax on the basis of self-assessment done by him. Hence, all GST return filings are based on self-assessment by the taxpayer. Every registered person shall self assess the taxes payable and furnish a return. This means GST continues to promote self-assessment just like the Excise, VAT, and Service Tax under the current tax regime.
Provisional assessment can be conducted for a taxable person when the taxpayer is unable to determine the value of goods or service or both or determine the rate of tax applicable thereto. In case the taxable person is unable to determine the tax liability due to the value or rate of tax, he may file an application in Form GST ASMT-01 along with documents in support of paying the tax on a provisional basis.
Procedure for Provisional Assessment:-
Interest Payable for Provisional Assessment
A taxable person is held liable to pay more tax than the tax paid at the time of provisional assessment, in such case, the taxable person will be liable to pay interest on such tax payment. Interest would be calculated from the actual due date of tax till the date of actual payment of tax.
Extension of Period:-
Reasons for the extension are as follows:-
After receiving notice there are again two possibilities:-
There are two possible actions by the assessee:-
The proper officer may pass the best judgment order in Form No. GST ASMT-13 on the basis of information he has or collected within 5 years from the due date of filing of annual return. Or in case a person did not file the following returns then the proper officer may pass the best judgments:-
On receipt of the said assessment order, if the registered person furnishes a valid return within a period of 30 days from the date of issuance of the assessment order, then in such case, the assessment order would be deemed to have withdrawn. However, the registered person will be liable to pay interest under Section 50 (1) or liable to pay a late fee under Section 47.
Best Judgment Assessment – the unregistered person (sec.63)
Officer may pass the best judgment assessment within five years if a person who is liable to obtain the registration fails to obtain the registration or the person whose registration has been canceled by the officer but who is liable to pay tax. An opportunity of being heard shall be given for 15 days before passing the order.
Summary Assessment is done when the assessing officer comes across sufficient grounds to believe any delay in showing a tax liability can harm the interest of the revenue. To protect the interest of the revenue, he can pass the summary assessment with the prior permission of the additional/joint commissioner.
Following are the consequences and penalties of non-compliance under GST:-
For tax evasion/ short deduction: 100% penalty subject to a minimum of Rs. 10,000/-
Any person would be liable to pay a penalty extending up to Rs. 25,000 in the following cases:-
Similar requirements on control exist in the existing excise, VAT, and service new regulations. Thus, a few of the GST assessment rules are similar to the existing indirect tax scheme. Please click here to learn about the correct assessment, the analysis of returns, the summary assessment.
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