Assessment, Self- Assessment, Summary and Scrutiny, Special Provisions
by Assessment in GST means the process of determining the tax liability of a registered person under the GST law. It includes verification of turnover, taxable supplies, Input Tax Credit (ITC), tax payable and tax already paid. GST generally follows a self assessment system under Section 59 of the CGST Act, 2017, where the taxpayer calculates and reports the tax liability. However, tax authorities may conduct scrutiny, provisional assessment, best judgment assessment or other prescribed assessments when required. Assessment helps ensure that taxpayers have correctly reported their transactions and paid the appropriate amount of GST to the Government.
Self-Assessment in GST:
Self assessment means that the taxpayer himself determines the GST liability payable to the Government. The registered person calculates taxable turnover, applicable tax, eligible Input Tax Credit and the final amount of GST payable. Under Section 59 of the CGST Act, 2017, every registered person is required to assess the tax payable for a tax period and furnish the prescribed return. The taxpayer must ensure that the information reported is complete and accurate. Thus, self assessment places primary responsibility for correct GST calculation and payment on the taxpayer.
Summary Assessment in GST:
Summary Assessment is a special form of assessment under Section 64 of the CGST Act, 2017. It may be undertaken by the proper officer when there is sufficient ground to believe that a delay in determining tax liability may adversely affect the interest of revenue. The officer can determine the tax liability based on available evidence and issue an assessment order. The taxpayer is subsequently informed about the order. Summary assessment is mainly intended for urgent cases where immediate action is necessary to protect Government revenue. It helps the tax authorities determine and recover tax quickly in exceptional circumstances.
Scrutiny Assessment in GST:
Scrutiny Assessment is a process under Section 61 of the CGST Act, 2017, through which the proper officer examines the correctness of a GST return filed by a registered person. The officer may compare the return with available information and identify discrepancies or inconsistencies relating to turnover, tax liability, Input Tax Credit or other details. The taxpayer is given an opportunity to provide an explanation and supporting documents. If the explanation is satisfactory, no further action may be required. If discrepancies remain unexplained, the officer may initiate appropriate proceedings under the relevant GST provisions. Scrutiny helps ensure accurate return filing, correct tax payment and proper ITC claims. It is an important method of GST compliance verification.
Special Provisions in GST:
Special provisions of assessment under GST deal with situations where the normal self assessment process cannot adequately determine the taxpayer’s liability. Important provisions are contained in Sections 60 to 64 of the CGST Act, 2017. These include provisional assessment, scrutiny of returns, assessment of non filers, assessment of unregistered persons and summary assessment. These provisions allow the tax authorities to determine tax liability in specific circumstances.