Section 62 of GST – Assessment of non-filers of returns. Check Details for GST Section 62 In this section you may find all details for Assessment of non-filers of returns as per GST Act 2017. Detailed Analysis of GST Section 62 of GST Act 2017.
Must Read – List of all sections of GST
Section 62 of GST – Assessment of non-filers of returns
(1) Notwithstanding anything to the contrary contained in section 73 or section 74,where a registered taxable person fails to furnish the return under Section 39 or Section 45, even after the service of a notice under Section 46, the proper officer 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 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.
(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of the service of the assessment order under sub-Section (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of section 50 or for the payment of late fee under section 47 shall continue.
Analysis of this section
This section commences with a non obstante clause, meaning whenever the provisions of section 73 or 74 applies, the provisions of section 62 of the Act cannot be invoked. However, the provisions of section 62 can be invoked only in case of registered taxable persons who have failed to file returns, as required, under section 39 or as the case may be, or final return on cancellation of registration under section 45 of the Act. Issuance of notice under section 46 appears to be a pre-condition for initiating proceedings under Section 62 of the Act. However, Section 62 can not be invoked for non-filing GSTR-1, GSTR-2 and GSTR-9.
Analysis of Provisions
Non-compliance with the notice issued under Section 46 paves the way for initiating the proceedings under this section. If the assessee fails to furnish the return within 15 days of issue of notice under section 46 then the Proper Officer may assess the tax liability in accordance with the provisions of Rule 100 i.e. to the best of his judgment, taking into account all the relevant material available on record, and issue an assessment order. This is also known as ‘best judgment assessment’. It can be completed without giving notice of hearing to the assessee. However best judgment assessment should be made on the basis of material available or material gathered by proper officer.
Please note that only returns under 39 and 45 are covered by section 62. In other words, non-filing of GSTR 3 (0r 3B) and GSTR 10 (final return) will attract best judgement assessment. Failure to file GSTR 1 does not attract section 62. Reference may be had to newly enacted section 43A where outward supplies returned will be deemed to be tax payable and attracts recovery actions.
Order under section 62 must be issued within a period of five years from the date specified under section 44 for furnishing annual return for the financial year to which the tax not paid relates. Section 44(1) states that due date for furnishing the annual return is on or before 31st December following the end of financial year to which such annual return pertains.
Non-issuance of notice under Section 46 closes the door on invoking Section 62 although other provisions are available to recover the tax dues. If, however, a registered person furnishes a ‘valid return’ within 30 days of the service of assessment order, the said assessment order shall be deemed to be withdrawn. ‘Valid return’ is defined in Section 2(117) to mean a return filed under Section 39(1) of the Act on which self-assessed tax has been paid in full.
Section 62 starts with the words ‘notwithstanding anything contrary to section 73 and 74’. Section 73 and 74 mandates issue of SCN and providing opportunity of being heard before passing order for demanding tax. Further, tax can be demanded for the period as prescribed in section 74, if the existence of omissions and commissions, as mentioned u/s 74, are proved. The pre-condition of issuing SCN, providing opportunity of being heard for demanding tax for the period prescribed u/s 74 in the presence of omissions and commissions listed u/s 74 is sought to be overcome by the non-obstante clause u/s 62. The assessment u/s 62 however can be made only upto 5 years from the due date of furnishing of annual return u/s 44. Consequence of late fee under Section 47 and interest under Section 50 will both be applicable in cases of conclusion of best judgement assessment made under this Section, even if the assessment order u/s 62 is withdrawn.
An order passed under this section shall be communicated to the registered person in FORM GST- ASMT 13
Recommended Articles –