Best Judgement Assessment on non-furnishing of GST Returns

CBIC has come with circular No. 129/48/2019-GST Standard Operating Procedure to be followed in case of non-filers of returns.

Before understanding Best Judgement Assessment, let us know Crux of Circular no.129/48/2019-GST dated 24th Dec 2019

1) Every Registered persons will get a reminder 3 days before due date to file their GST returns

2) once the due date is over, the registered person will get a auto msg stating that he has not filed the said return

3) 5 days after the due date is over, the registered person will get a notice in form GSTR3A requiring him to furnish the said return within 15 days

4) if the person doesn’t file the return within 15 days, the officer will pass a best judgement assessment order in form GST ASMT 13 on thr basis of information like E-way bill, 2A or any other relevant information.

5) Now, the registered person gets a final opportunity to submit his return within 30 days from passing the above order, if he files then the order will stand withdrawn. If he doesn’t, then the officer will start recovery proceedings u/s 79 and 80 for recovery of GST.

What is best Judgement Assessment in GST

Legal Text

Assessment of Non-Fillers of GST Return:

As per Section 62 of the CGST Act, 2017 provides :-

(1) Notwithstanding anything to the contrary contained in sec. 73 or sec. 74, where a registered person fails to furnished the return under sec. 39 or sec. 45, ever after the service of a notice under sec. 46, 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 and issue an assessment order within a period of five years from the date specified under sec. 44 or furnishing of the annual return for the financial year to which the tax not paid relates.

(2) Where the registered person furnishes a valid return within thirty days of the service of the assessment order under sub-section(1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under section 50 or for the payment of late fee under sec. 47 shall continue.

Assessment of Unregistered Person in GST:

As per section 63 of the CGST Act,2017, provides:-

Notwithstanding anything to the contrary contained in section 73 or sec.74, where a taxable person fails to obtain registration even though liable to do so or whose registration has been cancelled under sun-section (2) of section 29 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 judgment for the relevant tax periods and issue an assessment order within a period of five years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates:

Provided that no such assessment order shall passed without giving the person an opportunity of being heard.

Relevant Extract of Rule 100 of CGST Rules 2017 

Assessment in certain cases.

100. (1) The order of assessment made under sub-section (1) of section 62 shall be issued in FORM GST ASMT-13 and a summary thereof shall be uploaded electronically in FORM GST DRC-07.

Best Judgement Assessment on non-furnishing of GST Returns

(2) The proper officer shall issue a notice to a taxable person in accordance with the provisions of section 63 in FORM GST ASMT-14 containing the grounds on which the assessment is proposed to be made on best judgment basis and shall also serve a summary thereof electronically in FORM GST DRC-01, and after allowing a time of fifteen days to such person to furnish his reply, if any, pass an order in FORM GST ASMT-15 and summary thereof shall be uploaded electronically in FORM GST DRC-07.

Best Judgement Assessment on non-furnishing of GST Returns

Best Judgement Assessment is made by the AO, based on his reasoning and using the available information.

In GST situation of best judgement arises when:

• the registered person has not filed his return
• the person is not registered for GST even though he is liable to

Assessment of Non Fillers of GST Returns

If a registered person fails to furnished the return Even after service of notice in Form GSTR-3A, 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.

Filing of Valid return

Where the registered person furnishes a valid return within thirty days of the service of the assessment order, Best Judgement assessment order shall be deemed to have been withdrawn

Please note that the liability for payment of interest and late fee shall continue.

Assessment of Unregistered Person in GST

Where a taxable person fails to obtain registration even though liable to do so or whose registration has been cancelled, but he was liable to pay tax, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgment for the relevant tax periods.

Best Judgement Assessment shall not be done without giving the person an opportunity of being heard

If it is found that he did not register when he was liable to, then demand and recovery for unpaid tax will commence and the penalty for not registering will also apply.

Data that can be used by Tax Officer for doing the Best Judgement Assessment

For the purpose of assessment of tax liability, the proper officer may take into account the details of outward supplies available in the statement furnished under FORM GSTR-1, details of supplies auto- populated in FORM GSTR-2A, information available from e-way bills, or any other information available from any other source, including from inspection of books of accounts;

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Tags : GST, GST Return