Types of Assessment & Assessment Procedures

The Goods and Services Tax (GST) is administered by the GST Council, which is a constitutional body that oversees the implementation of GST. Under GST, there are three types of assessments: self-assessment, provisional assessment, and summary assessment.

Self-Assessment

Self-assessment is the most common type of assessment under GST. Under this type of assessment, taxpayers are required to self-assess the tax payable and file their returns accordingly. The taxpayer is required to calculate the amount of GST payable, take into account any input tax credit available, and then pay the net amount of GST due.

The procedure for self-assessment involves the following steps:

1. Obtain the GST registration: The taxpayer must first obtain a GST registration if they are liable to register under the GST Act.
2. Maintain records: The taxpayer must maintain detailed records of all transactions, including sales, purchases, and other expenses.
3. Self-assessment: The taxpayer must self-assess the tax payable and file their returns accordingly.
4. Payment of tax: The taxpayer must pay the net amount of GST due after taking into account any input tax credit available.
5. Filing of returns: The taxpayer must file their GST returns on a regular basis, depending on their turnover.

Provisional Assessment

Provisional assessment is an assessment made by the tax authorities when the taxpayer is unable to determine the correct amount of tax payable. Under provisional assessment, the taxpayer can pay a provisional amount of tax and file their returns accordingly. The tax authorities will then make a final assessment based on the information provided by the taxpayer.

The procedure for provisional assessment involves the following steps:

1. Application for provisional assessment: The taxpayer must apply to the tax authorities for provisional assessment and provide all the relevant information.
2. Payment of provisional tax: The taxpayer must pay a provisional amount of tax based on the information provided.
3. Final assessment: The tax authorities will make a final assessment based on the information provided by the taxpayer.
4. Payment of final tax: The taxpayer must pay the final amount of tax based on the final assessment made by the tax authorities.
5. Filing of returns: The taxpayer must file their GST returns on a regular basis, depending on their turnover.

Summary Assessment

Summary assessment is an assessment made by the tax authorities in cases where the taxpayer fails to file their returns or pay the tax due. Under summary assessment, the tax authorities can assess the tax liability of the taxpayer based on the information available to them.

The procedure for summary assessment involves the following steps:

1. Notice of demand: The tax authorities will issue a notice of demand to the taxpayer asking them to pay the tax due.
2. Payment of tax: The taxpayer must pay the tax due within the stipulated time period.
3. Assessment order: The tax authorities will make an assessment based on the information available to them and issue an assessment order.
4. Payment of tax: The taxpayer must pay the final amount of tax based on the assessment order.
5. Filing of returns: The taxpayer must file their GST returns on a regular basis, depending on their turnover.