CHAPTER -1

Assessment and Audit

Meaning of Assessment
 Assessment means determination of tax liability
under the GST Act.

 Assessment can be conducted in two different ways

mainly
1. by a registered person
2. by the department against the taxable person
1. By a registered person
 A registered person may assess his tax liability in two
different ways depending upon the circumstances

a. Self-Assessment

a. Provisional Assessment
2. By the department
 There are three different type of assessments
conducted by Authorities.

a. Summary Assessment

b. Scrutiny Assessment

c. Best Judgment assessment - Non-filers of return and

Unregistered Person.
Section 59 – Self Assessment
 The taxable person is required to pay tax on the basis
of self-assessment done by him.
Section 60 – Provisional Assessment
 Provisional assessment can be conducted for a
taxable person when the taxpayer is unable to
determine the value of goods or service or both or
determine the rate of tax applicable thereto.

 In other words -Where the taxable person is unable to

determine ,
1. Value of goods or services or both to be supplied by him; or
2. The rate of tax applicable to the goods or services to be supplied
by him,
Procedure for Provisional Assessment
Step 1: Request in writing.

Step 2: reviewing and passing an order within 90 days.

Step 3: Taxable person issue a bond with a security.

Step 4: The GST officer will pass final assessment within 60 days.

 Refund
 Release of Security – 7 working days
SECTION 64 - SUMMARY ASSESSMENT
Summary Assessments can be initiated to protect the
interest of revenue with the previous permission of
Additional Commissioner/Joint Commissioner if

1. The proper officer has evidence that a taxable person

has incurred a liability to pay tax under the Act, and
2. The proper officer has sufficient grounds to believe that
delay in passing an assessment order may adversely
affect the interest of revenue.
 Withdrawal – within 30 days
SCRUTINY OF RETURNS [SECTION 61]
GST Officers can scrutinize a GST return and related
particulars furnished by the registered person to verify
the correctness of the return.

 In case there is any discrepancies noticed by the officer,

he/she would inform the same to the registered person
and seek his explanation on the same.
 If explanation is satisfactory
 If explanation is not satisfactory – 30 days notice will
be issued
BEST JUDGMENT ASSESSMENT - ASSESSMENT OF
NON-FILERS OF RETURNS (SECTION 62)
Notwithstanding anything to the contrary contained in
section 73 or section 74, where a registered person
 Fails to furnish the return
 A notice will be issued – to file within 15 days
BEST JUDGMENT ASSESSMENT -
ASSESSMENT OF UNREGISTERED
PERSONS (SECTION 63)
 Notwithstanding anything to the contrary contained
in section 73 or section74

 If a registered person
- fails to obtain registration even though liable to do so;
or whose registration has been cancelled .
Procedure
 Issue of Notice by proper officer
 Contains the grounds of assessment
 In electronic form
 15 days time for taxable person
 Assessment order can be issued within 5 years.
AUDIT
Meaning
It is the process of examination of records, returns and
other documents maintained by a taxable person.
As per Section 2(13) of CGST Act 2017 “Audit” means
(a) The examination of records, returns and other
documents maintained or furnished by the registered
person under this act or rules
(b) To verify the correctness of turnover declared, taxes
paid, refund claimed and input tax credit availed
(c) To assess the compliance with provisions of this Act
or the rules made there under.
GST Audit is required under the following
three circumstances
1. Audit by Chartered Accountant or Cost
Accountant – Rule 80 and Section 35(5)
2. Audit by Tax Authorities(section 65)
Procedure
Audie by a general or a specific order.
Audit at place of Business
Notice should be given – not less than
15days
 Audit must be completed within 3 months from
commencement date.
 It can be extended not less than 6 months.
 On completion – within 30 days information should
be given to the Registered person.
3. SPECIAL AUDIT (SECTION 66)

 If any audit is in nature of complexity of the case and

the interest of revenue, is of the opinion that –
the value has not been correctly declared OR
the credit availed is not within the normal limits.
 Prior permission/ approval for audit.
 CA will be nominated by Commissioner
 Tenure for completion 90 days
 Extension for further 90 days.
 Expenses and fees will be paid by the Office.