Best Judgement Assessment What is Assessment under GST?
“Assessment” means the process of determining the tax liability under GST Act, 2017. It includes various type of assessment like:
Self-assessment
Re-assessment
Provisional assessment
Summary assessment
Best judgment assessment
Best Judgement Assessment becomes applicable in 2 situations:
• When any registered person who is liable to file return but fails to do so.
• When any person who is liable to register under GST but fails to do so.
1. Best Judgement Assessment in case of Non-filers[Section 62]
o In this case, the best judgement assessment can be initiated if the registered taxable person does not file his return (Monthly or Quarterly applicable to him according to his business structure and transactions).
o The proper officer shall first issue notice u/s 46 of the CGST Act requiring the registered taxable person to furnish the return within a period of 15 days.
If, even after issuing such notice u/s 46, the registered taxable person fails to furnish the return, the proper officer may proceed to assess the tax liability of the said person to the best of his judgment taking into account all the relevant material which is available or which he has gathered within a period of 5 years from the due date of the annual return for that particular year to which the tax not paid relates.
Withdrawal of Best Judgement Assessment Order
o Where the registered person furnishes a valid return within 30 days of the service of the assessment order issued above, the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of section 50 (not exceeding 18%) or for payment of late fee under section 47(Levy of late fee) shall continue.
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