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GST-Rules for Assessment
Presented By
Dr. Shikha Gupta
Associate Professor
Department of Commerce
Email: shikha_green@yahoo.com
Mobile: 7838092682
Lingaya’s Lalita Devi Institute of Management & Sciences
Affiliated to GGSIP University and Govt. of NCT of Delhi
NAAC Accredited “A” Grade Institute and Approved under section 2(f) of UGC Act 1956
1
Lingaya’s Lalita Devi Institute of Management & Sciences
Assessment : Meaning and Types
• Assessment means determination of correct tax liability.
• Types of Assessment:
2
Assessment
Self
Assessment
S. 59
Provisional
Assessment
S. 60
Scrutiny of
Returns
S. 61
Assessment of
non-filers of returns
S. 62
Assessment of
unregistered persons
S. 63
Summary assessment in
certain special cases
S. 64
Self Assessment – Sec 59
• Every Registered taxable person;
• Himself assesses the tax payable;
• Furnish the return for each tax period.
3
Provisional Assessment – Sec 60
• Unable to determine value and/or rate of tax;
• Request may be made in writing giving proper reasons to the
proper officer for payment of tax on provisional basis;
• Officer may pass an order granting permission to pay tax on
provisional basis within 90 days of receipt of request;
• Execution of a bond in such form as may be prescribed, & with such
surety or security as proper officer may deem fit ;
• Final assessment to take place within six months from date of
communication of order granting permission; further extendable by
6months (joint Commissioner /Add. Comm.)or 4 years
(commissioner) as the case may be;
• The balance payable or refund due to be settled along with interest.
4
Scrutiny of Returns – Sec 61
• Proper Officer may scrutinize the returns & other related
particulars furnished by the registered person to verify the
correctness;
• Discrepancies, if any noticed to be intimated to the
registered person & seek his explanation;
• On submission of acceptable explanation within 30 days:
No further action required;
• Unsatisfactory explanation within 30 days: Appropriate
action may be initiated.
5
Best Judgement Assessment – Sec 62
• Also called Assessment for Non-filers of Returns;
• Notwithstanding Section 73 or 74;
• Where, registered person fails to furnish returns, even after service
of notice;
• Proper Officer based on the information available to the best of his
judgment may proceed to assess the tax liability;
• Issue an assessment order within 5 years from due date of annual
return for the FY to which tax not paid relates;
• On filing of return within 30 days of receipt of assessment order:
– Best Judgment order shall be deemed to have been withdrawn;
interest and late fees payable as applicable.
6
Assessment of Unregistered Person –
Sec 63
• Notwithstanding Section 73 or Section 74;
• Taxable person fails to take registration or whose registration
has been cancelled but was liable to pay tax;
• Proper Officer may assess the tax liability to the best of his
judgment;
• Pass the assessment order within 5 years from the due date for
filing annual return to which the tax period relates.
• No such order can be passed without giving opportunity of
personal hearing;
7
Summary Assessment – Sec 64
• Proper Officer, on evidence showing tax liability of a person;
• With due permission of Addl./ Joint Commissioner;
• May proceed to assess the tax liability of such person to protect the
interest of revenue;
• Pass an assessment order;
• Where taxable person is not ascertainable & such liability pertains to
supply of goods, person in-charge of goods shall be deemed to be
taxable person;
• On application within 30 days from receipt of order, if the order is
erroneous; Addl./Joint Commissioner may withdraw such order &
follow procedure under Section 73 or Section 74.
8
Assignment 4
Link to Upload Assignment 4 https://forms.gle/WDoqatg9t1HvRVGn8
• Q1. How is the assessment made if the taxable person is not able to determine the
value of goods and/or services or determine the rate of tax?
• Q2. Whether Self-Assessment and provisional assessment are mutually exclusive?
• Q4. What is the time limit for passing final assessment order in case of provisional
assessment?
• Q5. Is there any additional opportunity provided for taxable person to submit a
return even after passing an assessment order under Sec 62(1)?
• Q6. Whether, The CGST Act, 2017 provides for assessment of taxes on the
unregistered taxable person who fails to take registration even though liable to do
so? What will be the procedure of such assessment?
• Q7. Whether proper officer can proceed suo-moto to assess the tax liability of any
person on possession of relevant evidence?
• Q8. Whether the Additional / Joint Commissioner can withdraw the summary
assessment order only on application by the taxable person?
GST-Rules for Inspection, Search, Seizure and Arrest
Presented By
Dr. Shikha Gupta
Associate Professor
Department of Commerce
Email: shikha_green@yahoo.com
Mobile: 7838092682
Lingaya’s Lalita Devi Institute of Management & Sciences
Affiliated to GGSIP University and Govt. of NCT of Delhi
NAAC Accredited “A” Grade Institute and Approved under section 2(f) of UGC Act 1956
10
Lingaya’s Lalita Devi Institute of Management & Sciences
Power of Inspection, Search and
Seizure – Section 67
© Indirect Taxes Committee, ICAI 11
•Then the Proper Officer can:
•Inspect: any place of business of the assesse who has evaded the tax or of the
transporter who transported such tax evading goods or godown / warehouse
operator in which such tax evading goods or accounts relating thereto has been
stored.
•Search and Seize: goods or any documents/books/ things are liable for confiscation
and which will be instrumental in the proceedings during the enquiry period (order
of seizure in Form GST INS-02)
•Seal or Break: open the door of any premises, storage, box or receptacle where
goods, books of accounts etc. are concealed and when access to the same is denied
to the said officer
•For initiating the proceedings Joint Commissioner or any superior officer(authorization in Form
GST INS-01) should have a ‘reason to believe’ that the assessee has done any of the following:
•suppressed any transaction of supply of goods or services or both
•Suppressed supply information relating to stock in hand or
•claimed excess input tax credit or
•has contravened any of the statutory provisions of this act or rules made thereunder
•Kept goods which have escaped payment of tax or in such a manner as likely to cause
evasion
Power of Inspection, Search and Seizure
– Section 67
12
• If not practicable to seize, proper officer may serve on the owner or the
custodian of the goods, an order of prohibition in FORM GST INS-03 that he
shall not remove, part with, or otherwise deal.
• Custodian of seized documents is entitled to take photocopy or extract, in
presence of an authorised officer;
• Seized goods shall be released on execution of bond/ furnishing security of
such quantum in FORM GST INS-04 as may be prescribed or on payment of
applicable tax, interest and penalty;
• The officer is bound to issue the notice within 6 months of such seizure else
seized goods are liable to be returned competent authority may extend the
notice for a further period of 6 months for sufficient causes;
• Disposal permitted of goods which are of perishable or hazardous nature, or
of depreciating value by passage of time or there is constrained for storage
immediately.
• Those goods or things seized of perishable or hazardous nature may be
released on payment of an amount equivalent to the market price of such
goods or amount of tax, interest & penalty that is or may become payable,
whichever is lower.
Power of Inspection, Search
and Seizure – Section 67
• Where the taxable person fails to pay the above amount in respect of the
said goods or things, the Commissioner may dispose of them and the
amount realized shall be adjusted against tax, interest, penalty, or any
other amount payable.
• Proper officer to maintain inventory of Goods seized;
• Provisions of the Code of Criminal Procedure, 1973 relating to search and
seizure apply and powers related to ‘Magistrate’ to be possessed by CGST/
SGST Principal Commissioner or Commissioner;
• Where proper officer has reasons to believe that any person has
evaded or is attempting to evade the payment of any tax, he may,
for reasons to be recorded in writing, seize the accounts, registers
or documents produced before him and shall grant a receipt for the
same, and shall retain the same for so long as may be necessary
• Commissioner or an officer authorised may purchase any goods
and/services from business premises of any taxable person, to
check issue of tax invoices/bills of supply, and on return of goods so
purchased, such taxable person shall refund amount so paid.
13
Power of Inspection and Arrest –
Sections 68 and 69
14
• The Central Govt or State Govt may require the person in charge of
conveyance carrying any consignment of goods exceeding the
specified value to carry prescribed documents which need to be
produced for verification when vehicle is intercepted by Proper
Officer;
• The person committing an offence of tax evasion or repletion of tax
evasion (as provided u/s 132) may be arrested by officer on
authorization from the Commissioner of CGST / SGST;
• The person so arrested is required to be produced before magistrate
within 24 hours in case of cognizable offences;
• In case of non-cognizable and bailable offences the Assistant/Deputy
Commissioner may grant the bail having same powers and subject to
the same provisions as an officer-in-charge of a police station
Power to issue Summon and Access
to Business premises – Sections 70
and 71
15
If deemed fit, any person may be summoned by authorized CGST / SGST
Officers either to give evidence or to produce a document or any other
thing in any inquiry as considered necessary
For the purposes of carrying out any audit, scrutiny, verification and checks
as may be necessary to safeguard the interest of revenue authorized CGST/
SGST Officers may access any business premises to inspect: books of a/c
documents, computers, computer programs, computer software etc. and
such other things as he may require and which may be available at such
premises
On demand by the audit officer / CA / Cost Accountant nominated by the
Dept. for conducting the audit, the person needs to produce the records
related to GST, trial-balance, audited financial reports, IT Reports, relevant
records etc. within 15 working days from the date of demand
All officers of other governmental dept. like Police, Revenue, Customs etc.
are required to assist the CGST/SGST officers, if they are called upon to do
so by Commissioner of CGST/SGST (sec 65)
Suggested Questions
• Q1. What is the meaning of the term Search,
inspection & seizure ?
• Q2. Who can authorize the act of carrying out
‘Inspection’ and under what circumstances?
• Q3. Which are the places of business /
premises which can be inspected by the CGST
officer under this section?
• Q4. What is the distinction in law between
‘Seizure’ and ‘Detention’?

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GST rules for Assessment, inspection, seizue, arrest.pptx.pdf

  • 1. GST-Rules for Assessment Presented By Dr. Shikha Gupta Associate Professor Department of Commerce Email: shikha_green@yahoo.com Mobile: 7838092682 Lingaya’s Lalita Devi Institute of Management & Sciences Affiliated to GGSIP University and Govt. of NCT of Delhi NAAC Accredited “A” Grade Institute and Approved under section 2(f) of UGC Act 1956 1 Lingaya’s Lalita Devi Institute of Management & Sciences
  • 2. Assessment : Meaning and Types • Assessment means determination of correct tax liability. • Types of Assessment: 2 Assessment Self Assessment S. 59 Provisional Assessment S. 60 Scrutiny of Returns S. 61 Assessment of non-filers of returns S. 62 Assessment of unregistered persons S. 63 Summary assessment in certain special cases S. 64
  • 3. Self Assessment – Sec 59 • Every Registered taxable person; • Himself assesses the tax payable; • Furnish the return for each tax period. 3
  • 4. Provisional Assessment – Sec 60 • Unable to determine value and/or rate of tax; • Request may be made in writing giving proper reasons to the proper officer for payment of tax on provisional basis; • Officer may pass an order granting permission to pay tax on provisional basis within 90 days of receipt of request; • Execution of a bond in such form as may be prescribed, & with such surety or security as proper officer may deem fit ; • Final assessment to take place within six months from date of communication of order granting permission; further extendable by 6months (joint Commissioner /Add. Comm.)or 4 years (commissioner) as the case may be; • The balance payable or refund due to be settled along with interest. 4
  • 5. Scrutiny of Returns – Sec 61 • Proper Officer may scrutinize the returns & other related particulars furnished by the registered person to verify the correctness; • Discrepancies, if any noticed to be intimated to the registered person & seek his explanation; • On submission of acceptable explanation within 30 days: No further action required; • Unsatisfactory explanation within 30 days: Appropriate action may be initiated. 5
  • 6. Best Judgement Assessment – Sec 62 • Also called Assessment for Non-filers of Returns; • Notwithstanding Section 73 or 74; • Where, registered person fails to furnish returns, even after service of notice; • Proper Officer based on the information available to the best of his judgment may proceed to assess the tax liability; • Issue an assessment order within 5 years from due date of annual return for the FY to which tax not paid relates; • On filing of return within 30 days of receipt of assessment order: – Best Judgment order shall be deemed to have been withdrawn; interest and late fees payable as applicable. 6
  • 7. Assessment of Unregistered Person – Sec 63 • Notwithstanding Section 73 or Section 74; • Taxable person fails to take registration or whose registration has been cancelled but was liable to pay tax; • Proper Officer may assess the tax liability to the best of his judgment; • Pass the assessment order within 5 years from the due date for filing annual return to which the tax period relates. • No such order can be passed without giving opportunity of personal hearing; 7
  • 8. Summary Assessment – Sec 64 • Proper Officer, on evidence showing tax liability of a person; • With due permission of Addl./ Joint Commissioner; • May proceed to assess the tax liability of such person to protect the interest of revenue; • Pass an assessment order; • Where taxable person is not ascertainable & such liability pertains to supply of goods, person in-charge of goods shall be deemed to be taxable person; • On application within 30 days from receipt of order, if the order is erroneous; Addl./Joint Commissioner may withdraw such order & follow procedure under Section 73 or Section 74. 8
  • 9. Assignment 4 Link to Upload Assignment 4 https://forms.gle/WDoqatg9t1HvRVGn8 • Q1. How is the assessment made if the taxable person is not able to determine the value of goods and/or services or determine the rate of tax? • Q2. Whether Self-Assessment and provisional assessment are mutually exclusive? • Q4. What is the time limit for passing final assessment order in case of provisional assessment? • Q5. Is there any additional opportunity provided for taxable person to submit a return even after passing an assessment order under Sec 62(1)? • Q6. Whether, The CGST Act, 2017 provides for assessment of taxes on the unregistered taxable person who fails to take registration even though liable to do so? What will be the procedure of such assessment? • Q7. Whether proper officer can proceed suo-moto to assess the tax liability of any person on possession of relevant evidence? • Q8. Whether the Additional / Joint Commissioner can withdraw the summary assessment order only on application by the taxable person?
  • 10. GST-Rules for Inspection, Search, Seizure and Arrest Presented By Dr. Shikha Gupta Associate Professor Department of Commerce Email: shikha_green@yahoo.com Mobile: 7838092682 Lingaya’s Lalita Devi Institute of Management & Sciences Affiliated to GGSIP University and Govt. of NCT of Delhi NAAC Accredited “A” Grade Institute and Approved under section 2(f) of UGC Act 1956 10 Lingaya’s Lalita Devi Institute of Management & Sciences
  • 11. Power of Inspection, Search and Seizure – Section 67 © Indirect Taxes Committee, ICAI 11 •Then the Proper Officer can: •Inspect: any place of business of the assesse who has evaded the tax or of the transporter who transported such tax evading goods or godown / warehouse operator in which such tax evading goods or accounts relating thereto has been stored. •Search and Seize: goods or any documents/books/ things are liable for confiscation and which will be instrumental in the proceedings during the enquiry period (order of seizure in Form GST INS-02) •Seal or Break: open the door of any premises, storage, box or receptacle where goods, books of accounts etc. are concealed and when access to the same is denied to the said officer •For initiating the proceedings Joint Commissioner or any superior officer(authorization in Form GST INS-01) should have a ‘reason to believe’ that the assessee has done any of the following: •suppressed any transaction of supply of goods or services or both •Suppressed supply information relating to stock in hand or •claimed excess input tax credit or •has contravened any of the statutory provisions of this act or rules made thereunder •Kept goods which have escaped payment of tax or in such a manner as likely to cause evasion
  • 12. Power of Inspection, Search and Seizure – Section 67 12 • If not practicable to seize, proper officer may serve on the owner or the custodian of the goods, an order of prohibition in FORM GST INS-03 that he shall not remove, part with, or otherwise deal. • Custodian of seized documents is entitled to take photocopy or extract, in presence of an authorised officer; • Seized goods shall be released on execution of bond/ furnishing security of such quantum in FORM GST INS-04 as may be prescribed or on payment of applicable tax, interest and penalty; • The officer is bound to issue the notice within 6 months of such seizure else seized goods are liable to be returned competent authority may extend the notice for a further period of 6 months for sufficient causes; • Disposal permitted of goods which are of perishable or hazardous nature, or of depreciating value by passage of time or there is constrained for storage immediately. • Those goods or things seized of perishable or hazardous nature may be released on payment of an amount equivalent to the market price of such goods or amount of tax, interest & penalty that is or may become payable, whichever is lower.
  • 13. Power of Inspection, Search and Seizure – Section 67 • Where the taxable person fails to pay the above amount in respect of the said goods or things, the Commissioner may dispose of them and the amount realized shall be adjusted against tax, interest, penalty, or any other amount payable. • Proper officer to maintain inventory of Goods seized; • Provisions of the Code of Criminal Procedure, 1973 relating to search and seizure apply and powers related to ‘Magistrate’ to be possessed by CGST/ SGST Principal Commissioner or Commissioner; • Where proper officer has reasons to believe that any person has evaded or is attempting to evade the payment of any tax, he may, for reasons to be recorded in writing, seize the accounts, registers or documents produced before him and shall grant a receipt for the same, and shall retain the same for so long as may be necessary • Commissioner or an officer authorised may purchase any goods and/services from business premises of any taxable person, to check issue of tax invoices/bills of supply, and on return of goods so purchased, such taxable person shall refund amount so paid. 13
  • 14. Power of Inspection and Arrest – Sections 68 and 69 14 • The Central Govt or State Govt may require the person in charge of conveyance carrying any consignment of goods exceeding the specified value to carry prescribed documents which need to be produced for verification when vehicle is intercepted by Proper Officer; • The person committing an offence of tax evasion or repletion of tax evasion (as provided u/s 132) may be arrested by officer on authorization from the Commissioner of CGST / SGST; • The person so arrested is required to be produced before magistrate within 24 hours in case of cognizable offences; • In case of non-cognizable and bailable offences the Assistant/Deputy Commissioner may grant the bail having same powers and subject to the same provisions as an officer-in-charge of a police station
  • 15. Power to issue Summon and Access to Business premises – Sections 70 and 71 15 If deemed fit, any person may be summoned by authorized CGST / SGST Officers either to give evidence or to produce a document or any other thing in any inquiry as considered necessary For the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue authorized CGST/ SGST Officers may access any business premises to inspect: books of a/c documents, computers, computer programs, computer software etc. and such other things as he may require and which may be available at such premises On demand by the audit officer / CA / Cost Accountant nominated by the Dept. for conducting the audit, the person needs to produce the records related to GST, trial-balance, audited financial reports, IT Reports, relevant records etc. within 15 working days from the date of demand All officers of other governmental dept. like Police, Revenue, Customs etc. are required to assist the CGST/SGST officers, if they are called upon to do so by Commissioner of CGST/SGST (sec 65)
  • 16. Suggested Questions • Q1. What is the meaning of the term Search, inspection & seizure ? • Q2. Who can authorize the act of carrying out ‘Inspection’ and under what circumstances? • Q3. Which are the places of business / premises which can be inspected by the CGST officer under this section? • Q4. What is the distinction in law between ‘Seizure’ and ‘Detention’?