FAQs on Summary Assessment Under GST Law—Purnendu Sahai

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers GST--Summary Assessment FAQs on Summary Assessment Under GST Law Purnendu Sahai The learned author seeks to make analysis of the scheme of the provisions of summary assessment, as envisaged under section 64 of the Central Goods and Services Tax Act, 2017 and rules made thereunder. 1. When is summary assessment resorted to? As per sub-section (1) of section 64, summary assessment can be resorted to by the proper officer where, -- -- any evidence showing a tax liability of a person comes to his notice, and --he has sufficient grounds to believe that any delay in doing so will adversely affect the interest of revenue. In the above circumstances, the proper officer may, with the previous permission of Additional Commissioner or Joint Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue and issue an assessment order. It is clear from the above that an Adjudicating Authority cannot frame the summary assessment u/s 64 without prior approval of Additional Commissioner (AC)/Joint Commissioner (JC). 2. In what Form would a summary assessment order be issued? A summary assessment order under section 64 shall be issued in Form GST ASMT-16. A summary of Form GST ASMT-16 shall be uploaded electronically in Form GST DRC-07. 3. What would happen where tax liability of a taxable person is not ascertainable? As per proviso to sub-section (1) of section 64, where the taxable person to whom the liability pertains is not ascertainable and such liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the taxable person liable to be assessed and pay tax and amount due under section 64. Thus, in certain cases like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be ascertained, the transporter or the person-in-charge of the warehouse shall be deemed to be the taxable person and will be assessed to tax. 4. Is an order passed without granting opportunity of being heard sustainable? In CH Subba Rayudu Government of Andhra Pradesh Writ Petition No. 3115 of 2021 (AP-HC) the Adjudicating Authority passed summary order demanding tax from the assessee. The assessee contended that the order was passed without considering the explanation and giving a reasonable opportunity of personal hearing to the petitioner. Hence, the order was violative of the principles of natural justice. The assessee further submitted that due to the prevalence of Covid-2019 pandemic, the petitioner could not physically approach the 3rd respondent to pursue his matter for getting required information and that was also one of the reasons why he could not produce the relevant bills before the 2nd respondent. The High Court held that an opportunity should be accorded to the petitioner to present his case before the Revenue Authority. The Revenue authority was directed to issue notice to the petitioner and afford an opportunity to him to present the relevant information in support of his contention, and consider the same and pass an appropriate order afresh in accordance with the governing law and rules. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Summary Assessment

FAQs on Summary Assessment Under GST Law

Purnendu Sahai

The learned author seeks to make analysis of the scheme of the provisions of summary assessment, as envisaged under section 64 of the Central Goods and Services Tax Act, 2017 and rules made thereunder.

1. When is summary assessment resorted to?

As per sub-section (1) of section 64, summary assessment can be resorted to by the proper officer where, --

-- any evidence showing a tax liability of a person comes to his notice, and

--he has sufficient grounds to believe that any delay in doing so will adversely affect the interest of revenue.

In the above circumstances, the proper officer may, with the previous permission of Additional Commissioner or Joint Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue and issue an assessment order.

It is clear from the above that an Adjudicating Authority cannot frame the summary assessment u/s 64 without prior approval of Additional Commissioner (AC)/Joint Commissioner (JC).

2. In what Form would a summary assessment order be issued?

A summary assessment order under section 64 shall be issued in Form GST ASMT-16. A summary of Form GST ASMT-16 shall be uploaded electronically in Form GST DRC-07.

3. What would happen where tax liability of a taxable person is not ascertainable?

As per proviso to sub-section (1) of section 64, where the taxable person to whom the liability pertains is not ascertainable and such liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the taxable person liable to be assessed and pay tax and amount due under section 64.

Thus, in certain cases like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be ascertained, the transporter or the person-in-charge of the warehouse shall be deemed to be the taxable person and will be assessed to tax.

4. Is an order passed without granting opportunity of being heard sustainable?

In CH Subba Rayudu Government of Andhra Pradesh Writ Petition No. 3115 of 2021 (AP-HC) the Adjudicating Authority passed summary order demanding tax from the assessee. The assessee contended that the order was passed without considering the explanation and giving a reasonable opportunity of personal hearing to the petitioner. Hence, the order was violative of the principles of natural justice. The assessee further submitted that due to the prevalence of Covid-2019 pandemic, the petitioner could not physically approach the 3rd respondent to pursue his matter for getting required information and that was also one of the reasons why he could not produce the relevant bills before the 2nd respondent. The High Court held that an opportunity should be accorded to the petitioner to present his case before the Revenue Authority. The Revenue authority was directed to issue notice to the petitioner and afford an opportunity to him to present the relevant information in support of his contention, and consider the same and pass an appropriate order afresh in accordance with the governing law and rules.