• By ADMIN
• Posted 25 Feb, 2024
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Assessment of Non-Filers of Returns under GST Regime: A Comprehensive Overview

Under the Goods and Services Tax (GST) regime, the assessment of tax liability plays a crucial role in ensuring compliance and revenue collection. One significant aspect of this assessment process pertains to non-filers of returns, where registered taxable persons fail to furnish their returns within the stipulated time frame. The GST law provides provisions to address such non-compliance and initiate assessments to determine the tax liability. In this article, we delve into the provisions governing the assessment of non-filers of returns under GST.

Legal Framework:

The legal framework governing the assessment of non-filers of returns under GST is primarily outlined in Sections 73, 74, 39, 45, and 46 of the Central Goods and Services Tax (CGST) Act, 2017. These sections empower the proper officer to take necessary actions in case of non-compliance by registered taxable persons.

Assessment Procedure:

1.Initiation of Assessment: When a registered taxable person fails to furnish their return under Section 39 or Section 45, despite the service of a notice under Section 46, the proper officer is authorized to proceed with the assessment of the tax liability. This assessment is conducted to the best of the officer's judgment, considering all relevant material available or gathered.The assessment order made under this section 62(1) is issued in FORM GST ASMT-13, and a summary thereof is uploaded electronically in FORM GST DRC-07. These forms facilitate transparency and documentation of the assessment proceedings, ensuring compliance with regulatory requirements

2. Time Limit for Assessment: The assessment order must be issued within a period of five years from the date specified under Section 44 for furnishing the annual returns for the relevant financial year.

3.Consequences of Non-Filing: Non-filing of returns within the prescribed timeframe triggers the assessment process, wherein the tax liability is determined by the proper officer based on available information.

4. Withdrawal of Assessment Order: If the registered person furnishes a valid return within sixty days of the service of the assessment order, the assessment order shall be deemed withdrawn. However, the liability for payment of interest under Section 50 or late fee under Section 47 continues.

Conclusion:

The assessment of non-filers of returns is a critical aspect of GST administration aimed at ensuring compliance and revenue integrity. The legal provisions empower proper officers to initiate assessments based on available information and determine the tax liability of defaulting taxpayers. By adhering to the prescribed procedures and documentation requirements, tax authorities can effectively address non-compliance and uphold the integrity of the GST system.