What is GST Section 60?
The GST regime in India would have drawn crucial revisions through the way the taxation would get progressed. Section 60 of the GST Act permits a taxable person to make a provisional assessment of goods or services if they are unable to ascertain the value or rate of tax applicable. In this post, we will go through Section 60 in-depth and look at the procedures implicated in the provisional assessment method.
Seeking Provisional Assessment Under CGST Act 2017
A taxable person may ask the proper officer for payment of tax on a provisional basis if they are having trouble estimating the value or tax rate for goods or services. This request must be submitted in writing and include a thorough justification for why a provisional evaluation is necessary.
Filing Application and Related Records
The assessee should provide the application including the pertinent documents, electronically in order to execute the provisional assessment procedure. Via common portal or through the Facilitation Centre authorized by the Commissioner the same application must get filed in form GST ASMT-01.
Other Details and Records
The notice in form GST ASMT-02 might get issued by the proper officer on the receipt of the provisional assessment application. The notice shall need the registered individual to file the other data or documents that support their provisional assessment request.
Answering the GST Notice
Towards the notice obtained from the proper officer, the petitioner should file the reply. In form GST ASMT-03 the same reply must get submitted. If the petitioner wants to get appear in person in front of the officer in the present case then he could do the same.
Read Also: Easy to Handle GST ASMT-10 Scrutiny Notice for Returns
Issuance of Provisional Assessment Order
The proper officer shall provide the order in the form GST ASMT-04 for a maximum duration of 90 days. The same order shall permit the tax payment on the provisional grounds and mentions the value or rate or both as per the provisional authorization of the assessment.
Implementation of Bond and Supply of Security
The execution of a bond and the supply of security are required steps in the provisional assessment procedure. The proper officer will specify the sum for which the bond must be executed and the quantity of the security that must be provided. The amount of the security should not be greater than 25% of the bond’s coverage.
Operating Existing Bonds
For the usage of section 60 if the bond would have been provided to the proper officer under the State Goods and Services Tax Act or Integrated Goods and Services Tax Act then the same shall be considered valid.
GST Assessment Finalization
The proper officer would provide a notice in form GST ASMT-06 when the provisional assessment gets completed. The same notice shall ask the enrolled individual to furnish the required details and records for the assessment finalization. In form GST ASMT-07 a final assessment order shall get issued which cites the liable amount to get paid or the amount refundable if applicable.
Time Period for Assessment Order
From the communication date of the order issued under sub-section (1) to pass the final assessment order the proper officer would have a time period of up to 6 months. The Joint Commissioner or Additional Commissioner, however, may extend this time frame for a maximum of six months or the Commissioner for a maximum of four years if justification is presented and the reasons are recorded in writing.
Interest on Tax-Liable to be Paid and Refund
The registered person shall be responsible for paying interest at a GST rate of 18% per year if tax owed under a provisional assessment is not paid by the deadline. Regardless of whether the payment is made before or after the issuing of the final assessment order, interest starts to accumulate the first day after the due date and continues until the day of actual payment.
In contrast, the registered person will be entitled to interest at a rate of 6% per year from the day following 60 days from the date of receipt of the refund application until the date of the reimbursement if a refund is required as a result of the final assessment order.
Security Release Under Sub-rule (4)
The petitioner might apply for the release of the security provided under sub-rule (4) by filing an application in form GST ASMT-08 post-issuance of the final assessment order. The proper officer shall release the security and provide the order in form GST ASMT-09 within 7 working days from the application receipt on validating that the said amount would get paid.
Closure: For the provisional assessment, Section 60 of the GST Act furnishes the process if the taxpayer suffers from issues in fetching the value or tax rate for the goods or services. By complying with the mentioned process and completing the required needs, the assessee can assure compliance at the time of handling the issues they face.
For the businesses learning the provision stated under 60 would be important in order to navigate through the provisional assessment procedure properly.
We really hope that this post has been useful in summarising these crucial portions, and we strongly urge you to follow our future updates to keep current on the newest information and legal requirements pertaining to the GST in India.
