Types of Assessment under GST The term “assessment” captures all actions one undertakes regarding the taxpayer in the GST system of India, such as filing of returns, and even correcting the discrepancies. Assessment as a concept is important and every person registered as a GST taxpayer must understand the types of assessments under GST for compliance. Under the GST provisions of the law, a different set of assessment procedures is provided which apply in different situations. Self-assessments done voluntarily and covered by specific provisions, as well as assessments done by relevant authorities, are discussed in detail in this article, along with the supporting legislation and the manner of performing each. Overview Table Type of Assessment Section Who Conducts When Applicable Self-Assessment Sec 59 Registered Taxpayer Every tax period Provisional Assessment Sec 60 Proper Officer (GST Dept.) Uncertainty in rate or value Scrutiny Assessment Sec 61 Proper Officer Return mismatch/suspected anomalies Best Judgment Assessment Sec 62 & 63 GST Authority Non-filing or unregistered persons Summary Assessment Sec 64 GST Authority with permission Urgent cases to protect revenue
What is GST Assessment? Simply put, assessment under GST involves determining the tax that a taxable person has to pay. It ensures that payment of taxes is done on time relative to its calculation. Assessment can be done by the taxpayer himself or herself (self-assessment), or it can be done by the GST authorities (scrutiny assessment or in case of non-compliance).
The law provides mechanisms to deal with all possible situations that can occur from paying tax, as mentioned in sections 59 to 64 of the Central Goods and Services Tax Act of 2017.
1. Self-Assessment – Section 59 This is the most common and default mode of assessment under GST.
What It Means: Under self-assessment, the taxpayer assesses their own tax liability and files GST returns (GSTR-1 , GSTR-3B , etc.) accordingly. This method relies on the principle of voluntary compliance and transparency.
Who Is Covered: Every registered taxpayer under GST.
When to Do It: For each tax period, monthly or quarterly, depending on the return filing frequency.
Key Points:
Must pay correct GST on outward supplies.
Should reconcile input tax credit (ITC) with GSTR-2B.
Any mismatch, under-reporting, or late filing may lead to scrutiny or penalties.
Legal Reference: Section 59 of the CGST Act.
Example: If a business supplies goods worth ₹10 lakh in a month and avails eligible input tax credit of ₹1 lakh, it must calculate and pay the net GST liability while filing GSTR-3B.
2. Provisional Assessment – Section 60 This assessment is applicable when a taxpayer is not sure about the correct GST rate or the value of supply .
When to Apply: If you’re uncertain about the taxability or valuation of a supply, such as composite supplies, bundled services, or complicated pricing.
Procedure:
File an application (GST ASMT-01) requesting a provisional assessment.
Proper officer permits it via ASMT-04 and asks for a security deposit (usually in the form of a bank guarantee).
Final assessment must be completed within 6 months (extendable by the Commissioner).
Benefit to Taxpayer: Prevents unnecessary penalties or interest due to underpayment.
Legal Reference: Section 60 of the CGST Act.
Example: A new pharma startup is unsure whether its bundled health packages attract 5% or 18% GST. They may request a provisional assessment to avoid disputes later.
3. Scrutiny Assessment – Section 61 This happens after the return filing if the department finds inconsistencies or anomalies in the taxpayer’s returns.
Who Initiates It: A proper officer from the GST department.
Purpose: To verify the correctness of self-assessment and tax payment.
Process:
The officer issued an ASMT-10 notice pointing out discrepancies.
The taxpayer must reply using ASMT-11 within 30 days.
If the reply is satisfactory, the assessment is complete.
If not, further actions like an audit or special investigation may follow.
Key Triggers for Scrutiny:
ITC claimed is disproportionately high.
Turnover declared in GSTR-3B does not match GSTR-1 or GSTR-9.
The GST paid is suspiciously low.
Example: A company files GSTR-3B showing ₹1 crore turnover but declares only ₹70 lakh in GSTR-1. This mismatch triggers a scrutiny notice.
4. Best Judgment Assessment – Sections 62 & 63 This assessment is done without the taxpayer’s cooperation , either due to non-filing of returns or when the taxpayer is not registered at all.
(i) Best Judgment for Non-Filers – Section 62
When: If a registered person fails to file returns even after a notice (under Section 46), the officer can assess based on available records .
Action: Officer issues ASMT-13 with tax estimation.
Example: A GST-registered trader doesn’t file GSTR-3B for 3 months. The department issues a best-judgment assessment based on previous filings.
(ii) Best Judgment of Unregistered Persons – Section 63
When: If someone is liable to register under GST but hasn’t done so , this section applies.
Action: The officer can conduct an assessment based on gathered data, inspections, or third-party information.
Legal Flow: Show-cause notice > Personal hearing > ASMT-15 order.
Example: A freelancer earning ₹30 lakh per annum hasn’t taken GST registration. Upon detection, the officer issues an assessment order under Section 63.
5. Summary Assessment – Section 64 This is a quick action assessment to prevent tax evasion or revenue loss.
When Applicable: If the department believes that any delay in assessment will harm government revenue , it can issue a summary order without hearing the taxpayer initially.
Conditions: Prior permission from the Additional/Joint Commissioner is mandatory.
The order was passed using ASMT-16 .
Safeguard for Taxpayer: The taxpayer can file ASMT-17 within 30 days to request withdrawal of the order if it’s unjust.
Example: A goods transporter is caught smuggling high-value unbilled supplies. The officer issues a summary assessment to freeze liability before the goods are released.
Key Takeaways for Taxpayers
Timely Return Filing : Most issues arise from late or non-filing. Avoid penalties by staying punctual.
Maintain Proper Records : Clean accounting and return reconciliation will help you during scrutiny or audits.
Use Provisional Assessment : Don’t hesitate to request clarity if unsure about taxability, it's better than being penalised later.
Responding to Notices : Ignoring scrutiny or assessment notices can lead to more severe outcomes.
Stay Updated : GST law evolves frequently. Keep track of changes in rates, valuation methods, and input tax credit rules.
Conclusion Every business, be it big or small, must know the types of assessment under GST. From periodic self-assessment to summary assessments conducted on an emergency basis, each one has its significance and consequences. Companies that are proactive, truthful, and timely with their GST obligations will simplify processes, prevent unnecessary hassles, and enjoy enduring trust with tax officials.
FAQs Q1. What is assessment under GST Assessment under GST refers to the process of determining the correct tax liability of a taxpayer. It ensures that the taxpayer pays the right amount of tax, either voluntarily through self-assessment or by the GST department through other assessments.
Q2. How many types of assessments are there under GST? There are five main types of assessments under GST:
Self-Assessment (Section 59).
Provisional Assessment (Section 60).
Scrutiny Assessment (Section 61).
Best Judgment Assessment (Sections 62 & 63).
Summary Assessment (Section 64).
Q3. What is self-assessment in GST? Self-assessment means the taxpayer calculates and pays GST on their own, files returns like GSTR-1 and GSTR-3B, and avails input tax credit as applicable. It is the default method for all GST-registered persons.
Q4. What is scrutiny assessment under GST? GST officers conduct a scrutiny assessment when there are discrepancies or mismatches in a taxpayer’s GST returns. The officer issues a notice (ASMT-10), and the taxpayer must respond within 30 days.
Q5. When can a provisional assessment be requested? A taxpayer can request a provisional assessment if they are unsure about the correct GST rate or value of a supply. The officer allows a temporary assessment after a formal application and deposit of security.
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