Types of Assessment Under GST Law
Model Act contemplates following types of assessments:
- Self-assessment (Section 44)
- Provisional Assessment (Section 44A)
- Summary Assessment in certain special cases (Section 48)
- Scrutiny of tax returns filed by registered taxable persons (Section 45)
- Assessment of registered taxable person who have failed to file the tax returns (Section 46)
- Assessment of unregistered persons (Section 47)
Section 44 refers to the assessment made by the taxable person himself while filing the return while all other assessments are undertaken by tax authorities.
Provisional Assessment Under Section 44A
Provisional assessment under Section 44A is an Assessment undertaken at the instance of the assessee if he is not in a position to determine his liability. It is later followed by a final assessment. Final order must be passed within a period not exceeding 6 months from the date of communication of provisional assessment order. Said limit may be extended by Additional/Joint Commissioner by six months and by Commissioner as per his discretion.
Scrutiny of Returns Under Section 45
Section 45 which deals with scrutiny of returns is basically a pre-assessment procedure for the purpose of determination of tax liability and passing of an order under Section 51 of the Act.
Best Judgment Assessment Under Section 46 and 47
Assessments under Sections 46 and 47 are assessments undertaken by tax authorities on the principles governing best judgment assessment.
Summary Assessment Under Section 48
Assessment under Section 48 refers to a summary assessment based on returns filed by the assessee or any other information available through investigation when there is reason to believe that there will be loss of tax revenue, if such assessment is delayed. Prior permission of Additional / Joint Commissioner is required to carry out such assessment.