Chapter 17 – Assessment & Audit

Introduction

Assessment Under GST

Sec NO Sec 59 Sec 60 Sec 61 Sec 62 Sec 63 Sec 64
Type Self Assessment Provisional Assessment Scrutiny Assessment Best Judgement Assessment Summary Assessment
Assessed by Registered person Proper officer Proper officer Proper officer Proper officer Proper officer
Situation
(When)
Every Registered Person has to assess the Tax and furnish the return When Register person is unable to
i. Determine the value of goods or service or goods or both or/&
ii. Determine the Tax Rate
To verify Correctness of return A Registered Person Fails to Furnish Return A person label to get Register still not registered or
Whose Registration has been canceled
To protect the Interest of the Revenue
officer has evidence that the taxable person has incurred the liability AND has sufficient grounds to believe that delay in passing a assessment order may adverse effect the interest of revenue
Time Limit Refer Return Chapter With in 90 days from the receipt of such request by resisted person N/A With in 5 Years from due date of filing of annual return to which tax not paid relates N/A
opportunity of being heard NO NO Yes Notice GSTR 3A YES NO
Whether Proper Officer Needs Permission NO NO NO NO NO Yes
(from commissioner)
OUTCOME N/A Interest to be payable for the different in Provisional and final order @ 18% pa. Refer Note 1 for More
If any excess paid in PAO refund with interest 18% from 61th day From FAO
When assessee fails to reply with in 30 days from notice the PO may initiate
Departmental Audit u/s 65 or
Specific Audit u/s 66 or
Inspection u/s 67 or
Demand and recovery u/s 74,74A & 73
Interest to be paid form due date of filing to date of filling Normal interest + if return of not filed with in 60 Days from date of order u/s 62 100 per day
(additional interest)
Refer Note 2
Pay as per Assessment order or
Go for appeal
Pay as per assessment Order or
if order is erroneous -
Taxable person may request the PO to follow the procedure u/s 73,74 & 74A (Demand and recovery) With in 30 days from receipt of order or
The PO may withdraw such order aan follow the procedure u/s 73,74 & 74A
Withdrawal of Order N/A NO NO YES NO Yes

Note 1 :- Procedure for Provisional Registration

Form Procedure
Form GST ASMT - 01 Application for Provisional Assessment
Form GST ASMT - 02 Notice for Intimation or Documents
Form GST ASMT - 03 Reply to Notice
Form GST ASMT - 04 Provisional Assessment order with in 90 days from ASMT 01
Form GST ASMT - 05 Bond to be executed between Assessee and IT
Form GST ASMT - 06 Notice for Final Assessment
Form GST ASMT - 07 Final Assessment Order with in 6M from PAO + 6M by Additional/ joint commissioner + 4 Years by commissioner
(may take 6m to 5 Years)
Form GST ASMT - 08 Application for release of Bond
Form GST ASMT - 09 Order for Release of Bons

Illustration on computation of interest involved in Provisional Registration

Particulars Sec 50 Sec 60
Amount 4,00,000 2,00,000
Rate 18% 18%
No of Days From 21/09/20XX to 26/10/20XX
36 Days
From 21/09/20XX to 20/01/20XX
122 Days
Interest Computation 4,00,000 X 18 X 36/365 =
RS 7,101
2,00,000 X 18% X 122/365 =
RS 12,033

Note 2 :- Calculation of late fee for filing return after Best Judgement Order

Audit Under GST

Particulars Departmental Audit Special Audit
Section 65 66
Applicability Based on Turnover
(Not Notified)
During the inquiry/ investigation, it os to found that
i. value nor correctly declared or
ii. ITC availed incorrectly
Time Limit With in 3M by PAO + 6M by commissioner from Date of commencement of Audit With in 90 Days (additional 90 Days by approval form AC/DC) form date of commencement audit
Submission for audit report To Register person & commissioner
With in 30 days of completion of audit
To AC/DC
Expenses of audit born by GST Department GST Department
Scope All Books of Accounts i. value of taxable supplies made &
ii. ITC availed and utilized during the period of Audit

Other Provisions

Sec 85 liability in case of transfer of business

Dues Before transfer:-
Both transferor and transferee are jointly and severally liable
Dues After Transfer :- Only Transferee is liable

Sec 86 Liability if Agent and Principle

Both Agent and Principle are jointly and severally liable only when agent made supply or received on behalf of principal

Sec 87 Liability in case of Amalgamation/ Merger

Due Before Date of Amalgamation - Past company is liable
Dues after the Date of amalgamation - New company is liable

Sec 89 Liability of Directors

Private Company - Directors are Joint and severally label

Public Company - Directors are not Joint and severally label

As per Sec 90 Partners of a firm are joint and severally liable . If any Partner is retired same to be communicated to commissioner with in 30 days form date of retirement

In case of death of the partner the legal representative will still be liable upto the extent of Estate received from Deceased partner

Sec 91 Liability of Guardians and trustee

Guardians or trustee of Minor are liable for the dues of Minor