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Published on:
February 25, 2023
By
Harshini

Assessment under GST

Goods and Services Tax (GST) is an indirect tax that has replaced multiple indirect taxes such as Value Added Tax (VAT), service tax, excise duty, and more. GST is a comprehensive tax levied on the supply of goods and services, and it has made the tax system simpler and more transparent.

Under GST, every registered taxpayer is required to file periodic returns, and these returns are subject to scrutiny by the tax authorities. The scrutiny of returns is a process of examining the returns filed by the taxpayers to ensure that they have complied with the provisions of the GST law.

The assessment under GST is a process of determining the tax liability of a taxpayer. The assessment can be initiated by the tax authorities at any time within three years from the date of filing of the annual return.

Scrutiny of Returns

The scrutiny of returns is a process of examining the returns filed by the taxpayers to ensure that they have complied with the provisions of the GST law. The GST law empowers the tax authorities to scrutinize the returns filed by the taxpayers to check for any discrepancies or errors.

During the scrutiny of returns, the tax authorities may seek additional information or documents from the taxpayer. The taxpayer is required to furnish the information and documents within the specified time frame failing which, the tax authorities may impose penalties or initiate legal proceedings against the taxpayer.

The scrutiny of returns is an important process as it helps to ensure that the taxpayers are complying with the provisions of the GST law. It also helps to prevent tax evasion and ensures that the revenue of the government is protected.

Assessment under GST

The assessment under GST is a process of determining the tax liability of a taxpayer. The assessment can be initiated by the tax authorities at any time within three years from the date of filing of the annual return.

The assessment can be of two types:

  • Suo motu assessment: This is an assessment initiated by the tax authorities.
  • Assessment on request: This is an assessment initiated by the taxpayer.

The tax authorities may initiate the assessment if they have reason to believe that the taxpayer has not paid the correct amount of tax or has claimed excess input tax credit. The assessment may also be initiated if the tax authorities suspect that the taxpayer has committed any other contravention under the GST law.

During the assessment, the tax authorities may ask the taxpayer to furnish additional information or documents. The taxpayer is required to furnish the information and documents within the specified time failing which, the tax authorities may impose penalties or initiate legal proceedings against the taxpayer.

Once the assessment is completed, the tax authorities issue an assessment order to the taxpayer. The assessment order contains the details of the tax liability of the taxpayer as determined by the tax authorities. If the taxpayer disagrees with the assessment order, he can file an appeal before the appellate authority.

Conclusion

The scrutiny of returns and assessment under GST are important processes that help to ensure that the taxpayers are complying with the provisions of the GST law. These processes help to prevent tax evasion and ensure that the revenue of the government is protected. The taxpayers should ensure that they file their returns accurately and comply with the provisions of the GST law to avoid any penalties or legal proceedings.

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Updated on:
March 10, 2023