Assessment is nothing but the accurate determination of tax liability. Under GST or any other law for that matter, assessment is conducted for ensuring an efficient and effective collection of revenue. So, the same is not just important for the authority but also for the taxpayer as one can be relieved from the tax liability not on the basis of the payment of any amount as tax, but only on the basis of the proper assessment, computation and remittance of the tax amount to the Government or GST Authority.
As per section 2(11) of the GST Act, Assessment includes the following:
- Self-Assessment,
- Re-Assessment,
- Provisional Assessment,
- Summary Assessment and
- Best Judgement Assessment.
The above-stipulated assessments have been discussed in detail below for understanding:
Self-Assessment
Section 59 of the GST Act provides that every person who is registered under the Act shall self-assess the taxes that are payable under this Act and file return for each tax period as provided u/s 39 of the GST Act.
So self-assessment can be understood as a commonly used term whereby the taxpayer will compute his tax liability on his own and declare the income by furnishing the details pertaining to the same through the prescribed form and pay the tax liability arising on the same. We can say that normally, assessment starts with self-assessment, and this is the declared assessment by a taxpayer, which is accepted by the department and taken as a base for assessing his tax liability and matching the same with his original transactions for a particular financial year.
Re-Assessment
This is the re-assessing or re-performance of assessment done by the GST Authority on the income declared and tax payment made by the taxpayer so as to ensure that there is no short payment of tax which needs to be corrected as it is a mistake being committed by the taxpayer.
Provisional Assessment
This can be understood as a conditional assessment and is adopted when the taxpayer finds it difficult or is unable to find the actual value, rate, and liability held by him with respect to the GST payment. He shall then approach the Assession Officer (AO) with a written application pertaining to the same, who would then pass an order on a provisional and conditional basis, for which the assessee would then deposit tax liability arising in his name as specified in the order on a provisional basis. The AO or proper officer shall pass an order pertaining to the same within a period not later than 90 days from the date of receipt of such request from the taxpayer at such rate or on such value as may be specified by him on a provisional basis.
For allowing the payment of tax on a provisional basis, the taxpayer should execute a bond in such form as may be prescribed or the AO might deem fit. The same should be done with such surety or security also as the AO may deem fit, which would bind the taxpayer to pay the difference between the amount of tax finally assessed and the amount of tax provisionally assessed.
It should also be noted that the proper officer shall pass a final assessment order within 6 months from the date of communication of the order allowing the payment of tax on a provisional basis. And this can be extended to a further of 6 months by the Joint Commissioner or the Additional Commissioner on the basis of sufficient causes and reasons being furnished. The Commissioner can extend the same for a further period not exceeding 4 years.
Departmental Procedure for GST Assessment
i) GST ASMT-01, form shall be furnished by the persons who areregistered asking for payment of tax on a provisional basis with record document in electronic form.
ii) GST ASMT-02 is the one in which the proper officer would issue a notice for furnishing the additional information or documents in support, and the taxpayer may also appear in person if he desires so.
iii) GST ASMT-03, which is filed by the applicant as a reply to notice served by the officer, with proper information and supporting documents.
iv) GST ASMT-04, which is issued by the proper officer after allowing the payment of tax on a provisional basis and indicating value, rate or both, along with the amount of security mentioned in the order in which the bond is to be executed.
v) GST ASMT-05 will be used by the assessee to furnish a bond in the form of a bank guarantee with the amount mentioned in the order.
vi) GST ASMT-06 & GST ASMT-07 are used when the proper officer needs more details for the finalization of the assessment, for which he shall issue a notice in form GST ASMT-06 for the calling information and record. After receiving all required data and records, the proper officer issues an order of final assessment by specifying the amount in form GST ASMT-07, and if any amount is to be paid by the assessee, then he must pay it with interest, and if any amount is refundable then such amount shall be refunded with an interest rate as specified under this Act and the allied Rules.
vii) GST ASMT-08 & GST ASMT-09, is used when the final assessment order is issued. The assessee would then file an application in form ASMT-08 for releasing the security furnished, and the proper officer, after ensuring that the tax liability, if any was pending, has been credited, shall release it and then issue an order in the form, namely FORM GST ASMT-09 within a maximum period of 7 days from receipt of application.
Scrutiny Assessment
Scrutiny is nothing but cross-checking and verification so as to ensure the correctness and genuineness of the return filed or submitted by the registered person or the taxpayer. When there is any discrepancy found in the return and details furnished by an assessee, the proper officer will initiate the scrutiny process and cross-check and verify the same so as to ensure that the registered person has complied with the Act and Rules pertaining to GST in a proper manner or not and if there are any other points which have not been furnished or being omitted by the assessee.
Here, the proper officer shall issue a notice to the taxpayer to correct the discrepancy or submit the return furnishing proper details. And the failure on the part of the assessee to correct the same or take proper action pertaining to the same within a period of 30 days of being informed by the proper officer or such other time period as permitted, then such appropriate action shall be taken by the assessing officer with regard to the same.
The relevant points to be noted here are that this shall be applicable only in the case of registered persons and for the returns filed by him. So, scrutiny assessment cannot be opened or initiated in case of returns which are not filed by the assessee.
Departmental Procedure for GST Assessment
i) GST ASMT-10, is used when during the scrutiny if the proper officer is satisfied with the records, then he shall discard or abort the process, and if he is not satisfied as he found any discrepancy, then he shall serve a notice in this form to get information and explanation within 30 days or further period as may be permitted for furnishing details about such discrepancy, and he shall also quantify tax, interest and any other sum payable.
ii) GST ASMT-11 is the form used when the registered person, after receiving notice in ASMT-10, accepts the discrepancy and pays the tax, interest and any other sum payable as mentioned in it, along with furnishing a reply with an explanation in ASMT-11 to the proper office for such discrepancy.
iii) GST ASMT -12, is used after furnishing the reply with explanation by registered person and if it is found to be acceptable. Then the proper officer stops any further inquiry and inform him accordingly in form GST ASMT-12.
Best Judgement Assessment:
A registered person who does not furnish the return even after furnishing the notice with regard to the same, then, the proper officer would, after considering all the data, records and such other information available to him, pass an order on the basis of his best judgement. If the registered person furnishes a valid and proper return on the basis of such order which the proper officer found correct, then the process shall be dropped, also considering the full payment of tax liability along with such other sum payable. This order shall be issued by the proper officer within a period of 5 years from the date for furnishing the annual return for the financial year to which the tax liability exists is relating to.
Departmental Procedure for Assessment
i) GSTR-3A, (Rule 68), is a notice issued, prescribing the manner for furnishing return within 15 days for completing assessment.
ii) GST ASMT-13, Rule 100, is the order for assessment which is issued by the proper officer.
Hence, we can now conclude that the above said assessments are the ones which would help the proper officer ensure that all the registered persons are complying with the provisions of the tax and are paying tax as required by the law.
