TaxTMI 
TaxTMI 
02 Mar 2023
The assessment process under GST is a self-assessment system, which means that taxpayers are required to file their returns and pay taxes on their own, without any intervention from the GST authorities. Assessment is a very important process under the Goods and Services Tax Act (GST). It basically refers to the verification and determination of the tax liability of a taxpayer. Assessments are conducted by the GST authorities to ensure that taxpayers are complying with the provisions of the Act and paying the correct amount of tax. However, to ensure compliance, the GST authorities may conduct various types of assessments as under:
- Self-Assessment (Sec 59): Under this type of assessment, taxpayers are required to self-assess their tax liability and file their returns accordingly. The GST authorities will then verify the returns and may initiate further assessments if required.
- Provisional Assessment (Sec 60): This type of assessment is conducted when a taxpayer is unable to determine the correct tax liability due to various reasons such as incomplete information or pending investigation. The taxpayer is required to pay a provisional tax, and the final assessment is conducted after the relevant information is obtained.
- Scrutiny of Returns (Sec 61): This type of assessment is conducted when the GST authorities have reason to believe that a taxpayer has not paid the correct amount of tax or has not complied with the provisions of the Act. The authorities may ask for additional information or documents, and the taxpayer is required to provide the same.
- Best Judgment Assessment (Sec 62 & 63): This type of assessment is conducted when a taxpayer fails to file their returns or provide the required information. In such cases, the GST authorities may determine the tax liability based on the best of their judgment and issue an assessment order.
- Summary Assessment (Sec 64): This type of assessment is conducted when the GST authorities have evidence of tax evasion or fraud. In such cases, the authorities may conduct a summary assessment and issue an assessment order.