What are the 6 statutory assessment frameworks under the CGST Act?

The CGST Act provides 6 statutory modes of assessment: (1) Self-Assessment u/s 59; (2) Provisional Assessment u/s 60; (3) Scrutiny of Returns u/s 61; (4) Best Judgment Assessment of Non-Filers u/s 62; (5) Best Judgment Assessment of Unregistered Persons u/s 63; and (6) Summary Assessment in Special Cases u/s 64.

What is the statutory time limit for issuing a final assessment order under Section 60?

The Proper Officer must pass the final assessment order in Form GST ASMT-07 within 6 months from the date of communication of the provisional order. This period can be extended by the Joint/Additional Commissioner for further 6 months, and by the Commissioner for an additional period up to 4 years (total maximum 5 years).

What happens when a registered person files a valid return after a Best Judgment Order u/s 62?

If the registered person furnishes a valid return within 60 days (or further 60 days with additional late fee) of service of the assessment order in Form ASMT-13, the best judgment order is deemed to have been withdrawn. However, the liability for payment of interest u/s 50(1) and late fees u/s 47 continues.

What is the key difference between Departmental Audit (Sec 65) and Special Audit (Sec 66)?

Departmental Audit under Section 65 is conducted by the Proper Officer at the place of business or departmental office upon prior notice of at least 15 working days, to be completed within 3 months. Special Audit under Section 66 is directed by an officer not below Assistant Commissioner with prior approval of Commissioner, and is conducted by a nominated Chartered Accountant or Cost Accountant within 90 days, with audit expenses determined and paid by the Commissioner.

CA Final Indirect Taxes • Paper 4

Chapter 17: Assessment & Audit under GST

A structured reference guide covering all 6 statutory assessment procedures under the CGST Act (Sections 59 to 64), Forms ASMT-01 to 09 workflow, interest computation comparisons, Departmental Audit u/s 65, Special Audit u/s 66, and third-party liabilities u/s 85 to 91.

⚖️ 6 Assessment Frameworks

📑 Forms ASMT-01 to 09

🔍 Sec 65 & 66 Audits

🛡️ Sec 85–91 Liabilities

1. Assessment Under GST (Sections 59 to 64)

Assessment means determination of tax liability under the CGST Act. Below is the master comparative matrix across all 6 statutory modes of assessment:

Parameters	Sec 59 Self Assessment	Sec 60 Provisional	Sec 61 Scrutiny	Sec 62 Best Judgment (Non-Filer)	Sec 63 Best Judgment (Unregistered)	Sec 64 Summary Assessment
Assessed By	Registered Person	Proper Officer	Proper Officer	Proper Officer	Proper Officer	Proper Officer
Trigger / Situation (When)	Every registered person assesses self tax & furnishes returns.	When registered person is unable to determine: (i) Value of supply, OR (ii) Tax rate applicable.	To verify the correctness of the return filed by the taxable person.	A registered person fails to furnish return u/s 39 (Monthly) or u/s 45 (Final) even after notice u/s 46 (Form GSTR-3A).	A person liable to register fails to register, OR person whose registration was cancelled but liable to pay tax.	To protect revenue interest: Officer has evidence of liability AND grounds that delay will adversely affect revenue.
Statutory Time Limit	As per return filing due dates u/s 39.	Within 90 days from request in ASMT-01. Final order within 6 months (extendable up to 5 yrs).	N/A (Standard scrutiny procedure).	Within 5 Years from due date of furnishing annual return for relevant financial year.		N/A (Passed expeditiously).
Opportunity of Being Heard	NO	NO	YES (Notice in ASMT-10)	Notice in Form GSTR-3A (15 days notice)	YES (Notice in ASMT-14)	NO
Prior Permission Required?	NO	NO	NO	NO	NO	YES (From Addl./Joint Commissioner)
Consequences & Outcome	Pay tax as self-assessed in GSTR-3B.	Interest @ 18% p.a. on differential tax from original due date until payment. Excess refund with interest @ 6% p.a. from 60 days of application.	If satisfactory: Drop in ASMT-12. If no explanation within 30 days: Initiate Audit u/s 65/66, Inspection u/s 67, or Demand u/s 73/74/74A.	Best judgment order in ASMT-13. Pay tax + interest u/s 50 + late fee.	Best judgment order in ASMT-15. Pay tax or file appeal.	Summary order in ASMT-16. Assessee can apply within 30 days in ASMT-17 to withdraw order and proceed u/s 73/74.
Withdrawal of Order?	N/A	NO	NO	YES (Deemed withdrawn if valid return filed within 60 days with tax, interest & late fee).	NO	YES (Proper officer on application or own motion can withdraw).

Note 1: Procedure & Forms for Provisional Assessment (Sec 60 & Rule 98)

Step-by-step statutory execution from initial application to final assessment and bond release:

Form GST ASMT-01

Application by Taxable Person

Submitted electronically requesting payment of tax on a provisional basis indicating reasons for inability to determine value/rate.

Form GST ASMT-02

Notice for Information / Documents

Proper Officer issues notice within 15 days seeking additional documents or information from the applicant.

Form GST ASMT-03

Reply to Notice

Taxable person furnishes reply and requested documents within 15 days of notice receipt.

Form GST ASMT-04

Provisional Assessment Order (PAO)

Officer issues order within 90 days from ASMT-01 allowing payment on provisional basis at specified rate/value.

Form GST ASMT-05

Execution of Bond with Security

Taxable person executes bond with security (bank guarantee up to 25% of bond amount) binding payment of differential tax.

Form GST ASMT-06

Notice for Final Assessment

Proper Officer issues notice calling for information/records required for finalizing the assessment.

Form GST ASMT-07

Final Assessment Order (FAO)

Issued within 6 months from PAO. Extendable by Joint/Addl. Comm. by 6 months, and by Commissioner up to 4 years (Total max: 5 Years).

Form GST ASMT-08

Application for Release of Security

Taxable person applies for release of security/bond after payment of differential tax dues as finalized in ASMT-07.

Form GST ASMT-09

Order for Release of Security

Proper Officer passes order releasing bond and security within 7 working days of receipt of application.

Illustration on Computation of Interest in Provisional Assessment (Sec 50 vs Sec 60)

Particulars	Under Normal Provisions (Sec 50)	Under Provisional Assessment (Sec 60)
Tax Amount Involved	₹4,00,000	₹2,00,000 (Differential Tax)
Applicable Interest Rate	18% p.a.	18% p.a.
Period / Days Count	From 21/09/20XX to 26/10/20XX = 36 Days	From 21/09/20XX to 20/01/20XX = 122 Days
Interest Amount Computation	$$\text{₹}4,00,000 \times 18\% \times \frac{36}{365} = \mathbf{\text{₹}7,101}$$	$$\text{₹}2,00,000 \times 18\% \times \frac{122}{365} = \mathbf{\text{₹}12,033}$$

Note 2: Return Filing & Order Deemed Withdrawal under Section 62 (Best Judgment)

If a non-filer files a valid return within 60 days from service of assessment order in ASMT-13, the order is deemed to have been withdrawn. However, liability to pay interest u/s 50(1) and late fee u/s 47 continues.

2. Audit Under GST (Section 65 vs. Section 66)

The CGST Act provides two statutory audit frameworks to verify compliance, examine records, and ensure revenue integrity:

Departmental Audit Section 65

Conducted By: Proper Officer (Commissioner or officer authorized by him by general or special order).
Where Conducted: Place of business of registered person OR in office of the tax authority.
Prior Notice: Notice in Form GST ADT-01 issued at least 15 working days prior to commencement.
Time Limit for Completion: Within 3 months from date of commencement; extendable by Commissioner by further period not exceeding 6 months (Total: 9 Months).
Submission of Report: Proper Officer informs registered person of findings, grounds, rights & obligations in Form GST ADT-02 within 30 days of completion.
Audit Expenses: Entirely borne by the GST Department.
Scope of Audit: Books of accounts, turnover, exemptions, deductions, rate of tax, input tax credit availed/utilized, and payment of taxes.

Special Audit Section 66

Directed By: Assistant / Deputy Commissioner with prior approval of the Commissioner.
Conducted By: A Chartered Accountant (CA) or Cost Accountant (CMA) nominated by the Commissioner.
Statutory Trigger: At any stage of scrutiny, inquiry, or investigation, if officer is of opinion that: (i) Value not correctly declared, OR (ii) ITC availed not within normal limits.
Direction Notice: Taxable person directed in Form GST ADT-03 to get records audited.
Time Limit: CA/CMA submits report within 90 days; extendable on application by further 90 days (Total: 180 Days).
Audit Expenses & Fee: Determined and paid entirely by the Commissioner (not payable by registered person).
Principles of Natural Justice: Taxable person given opportunity of being heard if any audit material is used in proceedings u/s 73/74/74A.

3. Liability to Pay Tax in Special Cases (Sections 85 to 91)

Statutory rules determining joint, several, and individual tax liabilities in business restructuring, agency, corporate insolvency, and partnership succession:

Section 85

Transfer of Business (Whole or Part)

Dues Before Transfer: Transferor and transferee are jointly and severally liable to pay tax, interest, or penalty determined before or after transfer.
Dues After Transfer: Transferee is exclusively liable as if he had carried on the business.

Section 86

Principal and Agent

Where an agent supplies or receives any taxable goods on behalf of his principal, such agent and principal are jointly and severally liable for the tax payable on such goods.

Section 87

Amalgamation or Merger of Companies

Two or more companies amalgamating under High Court / NCLT order are treated as distinct companies until date of order. Transactions between them before order date are taxable supplies, and registration continues until order date.

Section 89

Liability of Directors of Private Company

Private Company: Directors during the period tax dues relate are jointly and severally liable, unless a director proves non-recovery was not due to gross neglect, misfeasance, or breach of duty.
Public Company: Directors are NOT personally liable for company dues.

Section 90

Partners of a Firm & Retirement

Firm & Partners: Partners are jointly & severally liable for all dues.
Retirement: Retiring partner must intimate retirement to Commissioner in writing within 30 days. If not intimated, liability continues till date of intimation.
Deceased Partner: Legal representative liable only to extent of estate received from deceased partner.

Section 91

Guardians, Trustees & Agents

Where business of minor, incapacitated person, or trust is conducted by guardian, trustee, or agent, the tax, interest, or penalty is levied upon and recoverable from such guardian/trustee to same extent as from minor/beneficiary.