Section 62 - Assessment of non-filers of GST returns

Contents

Para	Topics	Relevant Section/Rules/N/C/O
62.0	Purpose of Section 62	NA
62.1	Best Judgement Assessment for non-filers of return	NA
62.1.1	Assessment of tax liability of non filers of return within 5 years from due date of annual return of related FY	Section 62(1)
62.1.2	Time limit for issuance of assessment order = 5 yrs from due date of annual return	Section 62(1)
62.1.3	Assessment order shall be made in ASMT-13 along with summary thereof in DRC-07	Rule 100(1)
62.1.4	Deemed withdrawal of assessment Order on furnishing of valid return within 30 days of order	Section 62(2)
62.2	SOP to be followed in case of non-filers of returns	Circular No. 129/48/2019 – GST dated 24/12/2019

62.0 Purpose of Section 62

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Section 62 provides for best judgement of tax liability of person who fails to furnish the return even after service of notice u/s 46

62.1 Best Judgement Assessment for non-filers of return

62.1.1 Best judgement assessment of tax liability of non filers of return within 5 years from due date of annual return of related FY

Section 62(1)

Notwithstanding anything to the contrary contained in section 73 or section 74,

where a RP fails to furnish the return u/s 39 or 45, even after the service of a notice u/s 46,

the PO may proceed to assess the tax liability of the said person to the best of his judgement taking into account all the relevant material which is available or which he has gathered and

issue an assessment order

within a period of 5 years from the date specified u/s 44 for furnishing of the annual return for the FY to which the tax not paid relates.

62.1.2 Time limit for issuance of assessment order = 5 yrs from due date of annual return

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Assessment Order shall be issued by PO within a period of 5 years from the date specified u/s 44 for furnishing of the annual return for the financial year to which the tax not paid relates

Let’s assume that the due date of filing of Annual Return for F/Y 2017-18 is 31.12.2018.

If a person defaults in filing of return for any tax period falling in F/Y 2017-18, period of 5 years shall be reckoned from the due date of filing of Annual Return for F/Y 2017-18 i.e. 31.12.2018.

Accordingly, best judgment assessment can be made by Proper Officer on or before 31.12.2023.

Question & Answer

62.1.3 Assessment order shall be made in ASMT-13 along with summary thereof in DRC-07

Rule 100(1)

The order of assessment made u/s 62(1)

shall be issued in GST ASMT-13 and

a summary thereof shall be uploaded electronically in GST DRC-07.

62.1.4 Deemed withdrawal of assessment Order on furnishing of valid return within 30 days of order

Section 62(2)

Where the RP furnishes a valid return within 30 days of the service of the assessment order u/ss (1),

the said assessment order shall be deemed to have been withdrawn

but the liability for payment of interest u/s 50(1) or for payment of late fee u/s 47 shall continue.

Question & Answer

62.2 SOP to be followed in case of non-filers of returns

Circular No. 129/48/2019 – GST dated 24/12/2019

Above circular has been issued providing SOP to be followed by PO in case of non filers of return.

Please refer above circular for SOP

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Section 62 - Assessment of non-filers of GST returns