Meaning of “Assessment” Assessment means determining the tax liability. “Assess” in a taxing statute means the computation of the income of assesse, the determination of tax payable by him, and the procedure for collecting or recovering the tax.
The word ‘assessment’ can comprehend the whole procedure for ascertaining and imposing liability upon the taxpayer.
“Assessment” means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgement assessment.
“Self-Assessment in GST” Every registered taxable person shall self – assess the taxes payable under this Act and furnish a return for each tax period as specified under section 39 and section 59 of CGST Act.
“Provisional Assessment” Where the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, he may request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper officer in writing giving reasons for payment of tax on a provisional basis and proper officer shall pass an order, within a period not later than ninety days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him.
“Summary Assessment” Summary assessment is permissible only to protect interest of revenue, if delay is likely to adversely affect revenue. Summary assessment is exceptional power. The proper officer may, on any evidence showing a tax liability of a person coming to his notice, with the previous permission of Additional/ Joint Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue. He will issue an assessment order, if he has sufficient grounds to believe that any delay in doing so will adversely affect the interest of revenue.
“Best Judgement Assessment” Best judgement assessment is one of the tools to harass taxable persons. Really, best judgement assessment cannot be on basis of whims and fancies. It has been held that though best judgement assessment is an estimate and involves guess work, the estimate must relate to some evidence or material and it must be something more than mere suspicion.
- Best Judgement Assessment of non-fillers of returns: If a registered taxable person fails to furnish the return under section 39 or 45, even after the service of a notice under section 46, the proper officer may proceed to assess the tax liability of the said person to best of his judgement taking in to account all relevant material which is available or which he has gathered and issue an assessment order.
- Best Judgement Assessment of unregistered persons: Notwithstanding anything to the contrary contained in section 73 or section 74, where a taxable person fails to obtain registration even though liable to do so or whose registration has been cancelled under section 29(2) of CGST Act but who was liable to pay tax, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgement for the relevant tax periods and issue an assessment order. No such assessment order shall be passed without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.