Assessment in GST: Learn About the GST Assessment Procedure

One of the many benefits of the GST regime is the assessment and self-assessment of GST. These processes are introduced to facilitate ease of calculation, tax-paying simplicity and global competitiveness promotion. 

Let us understand the meaning of self-assessment and assessment in GST, assessment types, and assessment order in GST in detail. 

What does assessment mean in GST? 

The procedure to determine the tax liability of individuals and entities under the GST law is called ‘assessment’. There are various types of tax assessments in GST that can be performed by taxpayers and respective tax authorities. 

What are the types of assessment in GST? 

The various types of assessment in GST are listed below: 

• Self-assessment 
• Scrutiny assessment 
• Provisional assessment 
• Best judgement assessment 
• Non-filers of returns assessment 
• Unregistered persons assessment 
• Summary assessment 

Let us learn about each of these GST assessment types briefly. 

What is Self Assessment in GST? 

Self-assessment in GST is the only assessment type that taxpayers themselves can do. Here, they must furnish a payable return by assessing their payable taxes. This type of assessment is similar to the previous indirect taxes (VAT, Service Tax, Excise) in promoting self-assessment. 

What is Scrutiny assessment in GST?

This assessment is done by tax officials. Scrutiny assessment in GST, a proper professional offer, would scrutinise and verify the correctness, identify discrepancies and seek explanation. 

In a scrutiny assessment, if the taxpayer’s answers are found to be satisfactory by the tax officer, there would be no action, and the taxpayer would be informed. 

However, the tax officer can take the following actions in case of unsatisfactory information. 

• u/s 65, an audit of the taxpayer would be conducted.
• u/s 66 special audit procedure might begin. 
• Search or inspection of taxpayer’s place(s) of business 
• Demand and recovery provisions might be initiated 

What is provisional assessment in GST? 

Provisional assessment in GST is done by a registered tax officer when requested by the taxpayer. This is done when the taxpayer is not able to determine the rate or value due to the following difficulties: 

• Transaction value calculation 
• Understanding the inclusion of certain receipts 
• Classification of goods or services
• Identifying the applicability or inapplicability of notifications 

The provisional assessment request must be given in writing to a proper tax authority. Within 90 days of the filing of the request, the order would be passed. 

In professional assessment, the taxpayer must issue a bond with security, promising the payment of the difference between the provisionally assessed tax and the final tax assessed. The final assessment should be completed within six months of the provisional assessment. 

Interest would apply if certain taxes were payable under provisional assessment left to be paid before the due date. The interest period would start from the date when the tax was first due. 

What is the best judgement assessment in GST? 

In the best judgment assessment in GST, the tax officer provides the available information and their reasoning for evaluation without any bias. This assessment applies to the following two conditions:

• Returns not filed by the taxable individuals 
• Liable persons not registered under the GST 

What is an unregistered persons assessment in GST?

If the taxpayer is liable but has failed to obtain registration or whose GST registration is cancelled, they will have to assess the same under Section 63 of the GST act for unregistered person assessment. 

What is summary assessment in GST?

Summary assessment in GST is only done for specific cases, such as tax evasion or a threat to revenue perceived by the tax authorities. Among the different types of assessment in GST, this is only to be used under exceptional circumstances. Of all the different types of assessments in GST, this one is to be practised on account of evidence of unpaid tax and tax payable with prior permission from the Joint Commissioner and the Additional Commissioner. This GST assessment is passed with sufficient grounds for protecting the revenue interest.  

What is the process of assessment in GST?

The step-by-step assessment procedure under GST is as follows: 

• Notice issue 
• Conducting Audit 
• Issue of Assessment Order 
• Rectification of Errors 
• Appeal Mechanism

Conclusion

The assessment process under GST ensures compliance, identifies discrepancies and errors, and helps improve taxpayer’s tax literacy. It is crucial for taxpayers to calculate and pay taxes accurately to avoid penalties.

Related Articles:

• GST Registration Documents
• How many types of GST are there in India?
• What is Input Tax Credit?
• Interest on GST Late Payment
• Step by Step Guide: GST Registration Process