If a person is unable to determine the tax liability, he may apply for provisional assessment u/s 60.

Section 60(1)

Subject to the provisions of sub-section (2),

where the taxable person is unable to determine the

value of goods or services or both or

rate of tax applicable thereto,

he may request PO in writing giving reasons for payment of tax on a provisional basis

Provisional assessment provides a method for determining the tax liability in case the taxable person is unable to

(a) determine the value of taxable goods and/or services; or

(b) determine the rate of tax applicable thereto at the time of supply.

Unlike section 59 which is applicable to registered person, this section is applicable to taxable  person.

No officer can of his own payment of tax on provisional basis.

Rule 98(1)

RP requesting for payment of tax on a provisional basis shall furnish an application along with the documents in support of his request, in GST ASMT-01.

Rule 98(2)

On receipt of the application u/sr(1), PO may issue a notice in GST ASMT-02 requiring RP to furnish additional information or documents in support of his request

Rule 98(2)

Applicant shall file a reply to the notice in GST ASMT–03, and may appear in person before the said officer if he so desires.

Section 60(1) read with Rule 98(3)

PO shall pass an order in GST ASMT-04,

within 90 days from the date of receipt of such request,

allowing payment of tax on provisional basis

indicating the value or the rate or both on the basis of which the assessment is to be allowed on a provisional basis

On receipts of request, PO shall pass order for payment of tax on provisional basis at such rate or on such value as may be specified by him in order. Such order shall be passed within 90 days from the date of receipts of request.

Section 60(2) read with rule Rule 98(3) & (4)

The payment of tax on provisional basis may be allowed,

if the taxable person executes a bond in GST ASMT-05, and

with such surety or security as PO may deem fit in the form of a bank guarantee and security should not exceed 25% of the amount covered under the bond

binding the taxable person for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed.

Execution of such bond shall bind the taxable person for payment of difference of between the tax finally assessed and provisionally assessed.

Security shall not exceed 25% of the amount covered under the bond.

Proviso to Rule 98(4)

a bond furnished to PO under the SGST Act or IGST Act shall be deemed to be a bond furnished under CGST Act

Explanation to Rule 98(4)

For the purposes of this rule, the expression “amount” shall include the amount of integrated tax, central tax, State tax or Union territory tax and cess payable in respect of the transaction.

Section 60(3)

PO shall, within a period not exceeding 6 months from the date of the communication of the order issued u/ss (1), pass the final assessment order after taking into account such information as may be required for finalizing the assessment:

Rule 98(5)

PO shall issue a notice in GST ASMT-06, calling for information and records required for finalization of assessment u/s 60(3) and shall issue a final assessment order, specifying the amount payable by RP or the amount refundable, if any, in GST ASMT-07.

Proviso to Section 60(3)

Period specified in this sub-section may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the Joint Commissioner or Additional Commissioner for a further period not exceeding 6 months and by the Commissioner for such further period not exceeding 4 years.

Section 60(4)

RP shall be liable to pay interest on any tax payable under provisional assessment but not paid on the due date specified u/s 39(7) or the rules made thereunder, at the rate specified u/s 50(1) from the 1^st day after the due date till the date of actual payment, whether such amount is paid before or after the issuance of order for final assessment.

Section 60(5)

Where RP is entitled to a refund consequent to the order of final assessment u/ss (3), subject to the provisions of section 54(8), interest shall be paid on such refund as provided in section 56.

Question & Answer

Rule 98(6)

The applicant may file an application in GST ASMT-08 for the release of the security furnished

Rule 98(7)

PO shall release the security, after ensuring that the applicant has paid the amount specified in sub-rule (5) and issue an order in GST ASMT–09 within 7 working days from the date of the receipt of the application under sub-rule (6).

Question & Answer