GST ASSESSMENT PROCEEDINGS NOT TO BE INVALID ON CERTAIN GROUNDS

[Dr. Sanjiv Agarwal]

Section 160 of CGST Act, 2017 provides that Assessment proceedings, etc. under the GST law shall not to be invalid on certain grounds

Statutory Provisions

Assessment proceedings, etc., not to be invalid on certain grounds

160. (1) No assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings done, accepted, made, issued, initiated, or purported to have been done, accepted, made, issued, initiated in pursuance of any of the provisions of this Act shall be invalid or deemed to be invalid merely by reason of any mistake, defect or omission therein, if such assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings are in substance and effect in conformity with or according to the intents, purposes and requirements of this Act or any existing law.

(2) The service of any notice, order or communication shall not be called in question, if the notice, order or communication, as the case may be, has already been acted upon by the person to whom it is issued or where such service has not been called in question at or in the earlier proceedings commenced, continued or finalised pursuant to such notice, order or communication.

This section provides that in certain situations, assessments, adjudication, summon proceedings or any other related proceedings shall not be held invalid or deemed to be invalid because of any mistake, defect, omission etc. if done, in accordance with the purpose, intention or requirement of the law.

It further provides that in certain situations, service of any notice or order or any other communication cannot be questioned, if it has already been acted upon by the person who has issued.

What type of proceedings are covered ?

This section covers the following proceedings :

1. Assessment

2. Re-assessment

3. Adjudication

4. Review

5. Revision

6. Appeal

7. Rectification

8. Notice

9. Summons or

10. Other proceedings

Actions covered for proceedings

Following actions in respect of above proceedings are covered for this section:

1. Action done
2. Accepted
3. Made
4. Issued
5. Initiated
6. Or purported to have been done

Impact of the provision

1. Such actions in relation to specified proceedings shall not be valid or deemed to be invalid
2. Such validation may be due to any reason by way of any mistake, defect or omission
3. Such actions shall be in substance and effect in conformity with the intention, purpose and requirement of GST law or any other old law.

Validity of service of notice etc

According to sub-section (2), any notice, order or communication cannot be called in question if action has already been taken upon by the person to whom it is issued. This will also apply in the cases where it was not called in question in the past in earlier proceedings or earlier proceedings have been finalized.

Applicable rules and forms

According to Rule 100 of CGST Rules, 2017, the sub-rule (3), (4) and (5) provides as follows:

(3) The order of assessment under sub-section (1) of section 64 shall be issued in FORM GST ASMT-16 and a summary of the order shall be uploaded electronically in FORM GST DRC-07.

(4) The person referred to in sub-section (2) of section 64 may file an application for withdrawal of the assessment order in FORM GST ASMT–17.

(5) The order of withdrawal or, as the case may be, rejection of the application under sub-section (2) of section 64 shall be issued in FORM GST ASMT-18.

Accordingly, following forms are required to be used for various purposes and are to be filed online:

S.No.	Form No.	Purpose
1.	GST ASMT – 16	Assessment order under sections 64(1) of CGST Act, 2017
2.	GST DRC -07	Summary of assessment order to be uploaded electronically
3.	GST ASMT -17	Application by taxable person for withdrawal of assessment order within 30 days
4.	GST ASMT- 18	Order of withdrawal or rejection of application