1. Assessment and its types.

Assessment means the determination of tax liability of the person as provided in Act and rules.
a. Self Assessment. Sec 59
A registered Taxable person shall undertake self assessment of the taxes payable and
furnish a return of each tax period. Determination of tax liability is to be undertaken by the
tax payer himself and stated in the return to be filed by him is called Self Assessment.
b. Provisional Assessment. Sec 60
Provisional assessment can be invoked by the taxable person by making a request or
application to the proper officer, and such request may be made only under the following
circumstances (1) if he is unable to determine the value of goods and/or services or, (2) He
is uncertain about the rate of tax applicable.
It can be made only upon a written request in Form GST ASMT 01 made by the taxable
person and it cannot be resorted by suo-motu basis. Officer shall pass an order in Form GST
ASMT 04 allowing payment of tax on provisional basis within a period of 90 days from the
date of request. The registered person needs to submit a bond or surety for the amount of
difference in provision assessment and actual tax to be paid. Officer shall within a period of
6 months from the date of communication of provisional assessment , pass the final
assessment order in GST ASMT 07.
c. Scrutiny Assessment. Sec 61
The officer may scrutinize the return and shall inform the taxable person of discrepancies
noticed and seek explanation. The purpose of scrutiny is to ensure that all transactions
undertaken by taxable person during the tax period have been disclosed fully. If the
explanation is satisfactory, the taxable person shall be informed and no further action will
be taken.
If there is any discrepancies found the officer shall issue a notice to the registered person for
seeking explanation not exceeding 15 days from the date of service of the notice. If the
registered person may accept the discrepancy in the notice and pay tax , interest or any
other some of money. If satisfactory response is not received within 30 days, proper officer
may undertake, Department Audit, Special Audit, Inspection or Search and Seizure or
Determination Tax.
d. Summary Assessment
It is generally used in a tax legislation to denote ‘Fast Track Assessment’ based on return
filed by the assessee. The officer must have sufficient ground to believe that any delay in
assessment will adversely impact the interest of revenue. Order of summary assessment
shall be issued where the proper officer has taken prior permission of the Additional or Joint
Commissioner. Order of summary assessment may withdrawn suo-motu or on application
made by the taxable person within 30 days from the date of receipt of order of summary
assessment from the Additional or Joint Commisssioner.
 e. Best Judgement Assessment
Best Judgement Assessment means the assessment of the authority make an assessment,
which in his own judgement, is the best one in the given circumstances. The term
judgement dispels the idea of arbitrary conclusion and indicates that in making the
assessment, the assessing authority must apply his mind, must come to logical conclusion
giving an express reasoning leading to the decision. It becomes applicable in 2 situations.
1. When a taxable person has not filed the return.
2. When a person has not registered for GST even though he is liable to do so.

i. Assessment of Non filers of Returns (Sec 62)

Where a registered taxable person fails to file his return within 15 days of issuance of notice,
the proper officer may assess the tax liability to the best of his judgement and issue an
assessment order within a period of 5 years for furnishing the annual return. If a valid return
has been furnished within 30 days of service of assessment order, the proper officer may
withdraw the said assessment order
ii. Assessment of Unregistered Persons.

If a taxable person fails to obtain the registration even though liable to do so, or whose
registration has been cancelled, but who was liable to pay tax, the officer shall issue a notice
to that person containing the grounds on which the assessment is proposed to be made on
best judgement basis and after allowing a time of 15 days to such person. The assessment
order must be issued within a period of 5 years from the due date of filing of the annual
return for the year to which the tax not paid.

2. Audit
Audit means examination of records and other documents maintained or furnished by the
registered person, to verify the correctness of turnover declared, taxes paid, refund claimed and
input tax credit availed, and to assess his compliance with the provisions. An audit involves
examining the evidence, ascertaining its reliability and establishing the relevance or applicability
of such evidence to the affairs of the person being audited and testing or verifying the
information disclosed.
3. Situations were auditing may be ordered

If the tax authorities are doubtful in the following cases audit may be ordered as
provided in section 65.

 The returns filed

 Output tax liability
 Genuineness of transactions
 Accuracy and maintenance of accounts and records
 Correctness of turnover
 Exemptions and deductions
 The rate of tax applied in respect of supply
  Input tax credit availed and utilised
 Refund claimed.

4. Provisions of Audit
a. The commissioner or any officer authorized by him, by way of general or a specific order,
may undertake the audit of registered person.
b. Audit may conduct at the place of business or in their office.
c. The registered person shall be informed by way of a notice in FORM GST ADT -01 not less
than 15 days prior to the conduct of audit.
d. Audit shall be completed within a period of 3 months from the date of commencement of
audit.
e. The period may extended by the commissioner with an order, but not exceeding 6 months.
f. Conclusion of audit shall inform the registered person in FORM GST ADT -02, within a period
of 30 days, about the findings the reasons for such findings.
5. Special Audit
In certain cases, the tax authorities may direct for special audit by a chartered accountant or
cost accountant to be nominated by the commissioner. Such audit is resorted to by an officer
not below the rank of Assistant Commissioner when he is of the opinion that the accounts are
complex in nature or there is chance of loss of revenue. This is called special audit. The
Chartered Accountant or Cost Accountant so nominated shall, within a period of 90 days, submit
a report of such audit, the period may further extended for 90 days by the Assistant
Commissioner. The registered person shall give an opportunity of being heard in respect of
material gathered on the basis of such special audit.
6. Search
An action of a government machinery to go look through or examine carefully a place, area,
person or object etc. in order to find something concealed or for the purpose of discovering
evidence of a crime. The search of person or vehicle or premises etc. can only be done under the
proper and valid authority of law.
7. Inspection
It is softer provision than search to enable officers to access any place of business of a taxable
person and also any place of business of a person engaged in transporting goods or who is an
owner or an operator of a warehouse or godown.
8. Seizure
It is the act of taking possession of the property by an officer under legal process. It generally
implies taking possession forcibly contrary to the wishes of the owner of the property or who
has the possession and who was unwilling to part with the possession.
9. Provisions of inspection of any place, search, seizure and arrest
a. Inspection of any place can be ordered in the following situations
 Registered person suppressed any transactions
 Suppressed the stock of goods in hand.
 Claimed excess input tax credit.
  Violated any provisions of the Act.
 Keeping goods which have escaped payment of tax.
 Kept account or goods in a manner to evade tax.
b. An officer not below the rank of Joint Commissioner may authorize in writing to inspect the
place of business, ware house, or godown.
c. If it is suspected any goods, books, documents are secreted in any place, such goods,
documents, books would be searched and seized.
d. If it is not practicable to seize, the owner or custodian may be ordered no to remove the
goods except with the previous permission of officer.
e. The person from whom any documents are seized shall be entitled to make copies thereof
or take extracts therefrom in the presence of the officer.
f. If the access for search is denied, the officer authorized shall have the power to seal or
break open the door.
g. If notice is not given in FORM GST ADT 02 within 6 months of the seizure, the goods shall be
returned to the person. The period may extend upto a maximum of 6 months.
h. The goods seized may dispose in the following cases (1) Goods are perishable or hazardous
in nature, (2) Depreciable with the passage of time, (3) it is difficult to store the goods,
(4) any other relevant considerations.
i. If the commissioner finds that a person has committed any offence which is punishable he
may, by order, authorize any officer to arrest such person.

10. Inspection of goods in movements (Sec 68)

Any conveyance is intercepted by the proper officer at any place, he may require the person in
charge of the said conveyance to produce the documents and devices for verification and the
said person shall be liable to produce the documents and devices and also allow inspection of
goods.
11. Power of Authorities
 The officer may exercise the powers and discharge the duties conferred or imposed on
him by GST.
 Exercise the powers and discharge the duties conferred.
 Delegate the powers to any other officer who is subordinate to him.
 Power to inspect, search, and seize.
 To seal or break open the door of any premises.
 Power to take copies of documents, books.
 Power to make sample purchase.
12.