TaxTMI 
TaxTMI 
Assessment and Audit
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....ied by him, or b) determine the tax rate applicable to the goods or services to be supplied by him. In such cases the taxable person has to execute a bond in the prescribed form, and with such surety or security as the proper officer may deem fit. Q 3. In what form and manner should the taxable person make a request for provisional assessment? Ans. Every registered person requesting for payment of tax on a provisional basis in accordance with the provisions of section 60(1) shall furnish an application along with the documents in support of his request, electronically, in FORM GST ASMT-01 on the common portal. The taxpayer need to specify reasons for seeking provisional assessment. Q 4. Can the proper officer ask for additional documents/clarification upon receipt of request for provisional assessment? If so how? Whether he has to issue any order for allowing provisional assessment? Ans. In case the proper officer requires further information or documents, the proper officer, on receipt of the application should issue a notice in FORM GST ASMT-02 requiring the registered person to furnish additional information or documents in support of his request. The applicant has to fil....
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.... be extended by a further period of six months by the Joint/Additional Commissioner and by the Commissioner for such further period not exceeding four years. However, such extension can be given only on sufficient cause being shown and for reasons to be recorded in writing. Q 11. What procedure will the proper officer follow for finalizing the provisional assessment? Ans. The proper officer shall issue a notice in FORM GST ASMT-06, calling for information and records required for finalization of assessment and shall issue a final assessment order, specifying the amount payable by the registered person or the amount refundable, if any, in FORM GST ASMT-07. Q 12. In case the amount of tax determined at the time of final assessment is higher than the tax paid at the time of provisional assessment, should the taxable person pay interest on the entire amount of tax (as finalised) from the initial due date of payment? Ans. Yes. The registered person shall be liable to pay interest on any tax payable on the supply of goods or services or both under provisional assessment but not paid on the due date specified under sub-section (7) of section 39 or the rules made thereunder, at the rat....
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....ond within 30 days from the date of service of the notice or such further period as may be permitted by the proper officer. Q 18. In case the taxable person accepts the discrepancies, how should he comply? Ans. The registered person may either accept the discrepancy mentioned in the notice issued under sub-rule (1), and pay the tax, interest and any other amount arising from such discrepancy and inform the same or furnish an explanation for the discrepancy in FORM GST ASMT-11 to the proper officer. Q 19. How will the proper officer deal with reply given in FORM GST ASMT-11 by the taxable person? Ans. Where the explanation furnished by the registered person or the information furnished in FORM GST ASMT-11 is found to be acceptable, the proper officer shall inform him accordingly in FORM GST ASMT-12. Q 20. In case the taxable person does not agree with the discrepancies communicated nor does he pay tax/interest etc arising out of such discrepancy, what course of action an the proper officer take? Ans. In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or where ....
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....sh his reply, if any, pass an order in FORM GST ASMT-15. Q 23. Under what circumstances can a tax officer initiate Summary Assessment? Ans. As per section 64 of CGST/SGST Act, Summary Assessments can be initiated to protect the interest of revenue when: a) the proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act, and b) the proper officer believes that delay in passing an assessment order will adversely affect the interest of revenue. Such order can be passed after seeking permission from the Additional Commissioner / Joint Commissioner. Q 24. In what manner will a summary assessment order be issued? Ans. The order of summary assessment under sub-section (1) of section 64 shall be issued in FORM GST ASMT-16. Q 25. Is summary assessment order to be necessarily passed against the taxable person? Ans. No. In certain cases, like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax (proviso to Section 64 of CGST/SGST Act). Q 26. Other than appell....
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....e completed? Ans. The audit is required to be completed within 3 months from the date of commencement of audit. The period is extendable for a further period of a maximum of 6 months by the Commissioner. Q 32. What is meant by commencement of audit? Ans. The term 'commencement of audit' is important because audit has to be completed within a given time frame in reference to this date of commencement. Commencement of audit means the later of the following: a) the date on which the records/accounts called for by the audit authorities are made available to them, or b) the actual institution of audit at the place of business of the taxpayer. Q 33. What are the obligations of the taxable person when he receives the notice of audit? Ans. The taxable person is required to: a) facilitate the verification of accounts/records available or requisitioned by the authorities, b) provide such information as the authorities may require for the conduct of the audit, and c) render assistance for timely completion of the audit. Q 34. What would be the action by the proper officer upon conclusion of the audit? Ans. The proper officer shall, on conclusion of audit, within 30 days inform the....
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....ner. Q 37. What is the time limit to submit the audit report? Ans. The auditor will have to submit the report within 90 days or within the further extended period of 90 days. This can be done by the Commissioner when he is satisfied that the audit cannot be completed in three months. The reasons for the same must also be recorded in writing. Q 38. Who will bear the cost of special audit? Ans. The expenses for examination and audit including the remuneration payable to the auditor will be determined and borne by the Commissioner. Q 39. What action the tax authorities may take after the special audit? Ans. Based on the findings / observations of the special audit, action can be initiated under Section 73 or Section 74 of the CGST/SGST Act. The action would also depend on whether the taxpayer voluntarily pays the requisite tax, interest and penalty. For instance, in case of fraud/suppression cases, if the taxpayer pays the requisite tax with 18% interest and 15% penalty, no notice will be issued by department and proceedings would be concluded. Post issue of notice, in case he pays the requisite tax, 18% interest and 25% penalty within 30 days, proceedings shall be concluded. ....