Assessment and Audit
GST FAQ 3rd Edition – December, 2018 – GST Frequently Asked Questions (FAQs)
GST
13. Assessment and Audit
\nQ 1. Who is the person responsible to make assessment of taxes payable under the Act?
\nAns. Every person registered under the Act shall himself assess the tax payable by him for a tax period and after such assessment he shall file the return required under section 39. Self-assessment will be the norm under GST.
\nQ 2. Under what circumstances can provisional assessment be done?
\nAns. As a taxpayer has to pay tax on self-assessment basis, a request for paying tax on provisional basis has to come from the taxpayer which will then have to be permitted by the proper officer. This is governed by section 60 of CGST Act and rule 98 of the CGST Rules. Tax can be paid on a provisional basis only after the proper officer has permitted it through an order passed by him. For this purpose, the taxable person has to make a written request to the proper officer, givi<\/p>\n
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\nAns. In case the proper officer requires further information or documents, the proper officer, on receipt of the application should issue a notice in FORM GST ASMT-02 requiring the registered person to furnish additional information or documents in support of his request.
\nThe applicant has to file a reply to the notice in FORM GST ASMT – 03
\nThe order for provisional assessment has to be issued within ninety days of the application. The order for provisional assessment has to specify the rate and\/or value, as the case may be, to be applied for by the taxpayer.
\nQ 5. Is it mandatory for the applicant to appear before the proper officer in such cases?
\nAns. No. However, if the applicant desires, he can appear before the proper officer in person.
\nQ 6. In what form and manner will the proper officer issue an order of provisional assessment?
\nAns. The proper officer shall issue an <\/p>\n
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\nQ 9. While executing the bond, is it necessary for the applicant to execute separate bonds for Central Tax and State Tax?
\nAns. No. The bond furnished to the proper officer under the State Goods and Services Tax Act or Integrated Goods and Services Tax Act shall be deemed to be a bond furnished under the provisions of the CGST Act and the rules made thereunder.
\nQ 10. What is the time limit within which the proper officer has to finalize the provisional assessment?
\nAns. Finalisation has to be done by the proper officer within a period of six months from the date of communication of the order of provisional assessment to the taxable person. The period of six months can be extended by a further period of six months by the Joint\/Additional Commissioner and by the Commissioner for such further period not exceeding four years. However, such extension can be given only<\/p>\n
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\nQ 13. In case, the tax payable on finalisation is less than the tax actually paid at the time of provisional assessment, how can the taxable person claim refund?
\nAns. Where the registered person is entitled to a refund consequent to the order of final assessment, such person will have to make an application for refund electronically at the common portal under Section 54 of the Act. The refund claim has to be filed within 2 years from the date of order of final assessment. The claim for refund (if it is not a zero rated supply) will have to pass the test of unjust enrichment. If the refund is not given within 60 days from the date of receipt of refund claim, interest (@ not exceeding 6%) shall be paid on<\/p>\n
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\nQ 17. What is the time limit for the taxable person to respond to such notice?
\nAns. The Taxable person has to respond within 30 days from the date of service of the notice or such further period as may be permitted by the proper officer.
\nQ 18. In case the taxable person accepts the discrepancies, how should he comply?
\nAns. The registered person may either accept the discrepancy mentioned in the notice issued under sub-rule (1), and pay the tax, interest and any other amount arising from such discrepancy and inform the same or furnish an explanation for the discrepancy in FORM GST ASMT-11 to the proper officer.
\nQ 19. How will the proper officer deal with reply given in FORM GST ASMT-11 by the taxable p<\/p>\n
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\nAns. Where a registered person fails to furnish a return under section 39 or section 44 or section 45 or Section 52, a notice in FORM GSTR-3A shall be issued, electronically requiring him to furnish such return within fifteen days.
\nIf within 15 days the returns are not furnished, the proper officer will make an order of assessment and it shall be issued electronically in FORM GST ASMT-13. This order of assessment shall be made by the proper officer 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.
\nIf the registered person furnishes a valid return within thirty days of the service of FORM GST ASMT-13, the said assessment order shall be deemed to have been withdrawn but the liability for payment of<\/p>\n
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\nQ 23. Under what circumstances can a tax officer initiate Summary Assessment?
\nAns. As per section 64 of CGST\/SGST Act, Summary Assessments can be initiated to protect the interest of revenue when:
\na) the proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act, and
\nb) the proper officer believes that delay in passing an assessment order will adversely affect the interest of revenue.
\nSuch order can be passed after seeking permission from the Additional Commissioner \/ Joint Commissioner.
\nQ 24. In what manner will a summary assessment order be issued?
\nAns. The order of summary assessment under sub-section (1) of section 64 shall be issued in FORM GST ASMT-16.
\nQ 25. Is summary assessment order to be necessarily passed against the taxable person?
\nAns. No. In certain cases, like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of suc<\/p>\n
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\nQ 28. How will the proper officer respond to the request made in FORM GST ASMT-17?
\nAns. The order of withdrawal or, as the case may be, rejection of the application in FORM GST ASMT-17 shall be issued in FORM GST ASMT-18.
\nQ 29. Who can conduct audit of taxpayers?
\nAns. There are three types of audit prescribed in the GST Act(s) as explained below:
\n(a) Audit by Chartered Accountant or a Cost Accountant: Every registered person whose turnover exceeds Rs. Two crore, shall get his accounts audited by a chartered accountant or a cost accountant. (Section 35(5) of the CGST\/SGST Act)
\n(b) Audit by Department: The Commissioner or any officer of CGST or SGST or UTGST authorized by him by a general or specific order, may conduct audit of any registered person. The frequency and manner of audit will be prescribed in due course. (Section 65 of the CGST\/SGST Act)
\n(c) Special Audit: If at any stag<\/p>\n
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\na) the date on which the records\/accounts called for by the audit authorities are made available to them, or
\nb) the actual institution of audit at the place of business of the taxpayer.
\nQ 33. What are the obligations of the taxable person when he receives the notice of audit?
\nAns. The taxable person is required to:
\na) facilitate the verification of accounts\/records available or requisitioned by the authorities,
\nb) provide such information as the authorities may require for the conduct of the audit, and
\nc) render assistance for timely completion of the audit.
\nQ 34. What would be the action by the proper officer upon conclusion of the audit?
\nAns. The proper officer shall, on conclusion of audit, within 30 days inform the taxable person about his findings, reasons for findings and the taxable person's rights and obligations in respect of such findings.
\nQ 35. In what manner will an audit under Section 65(1) be conduc<\/p>\n
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\nThe proper officer may inform the registered person of the discrepancies noticed, if any, as observed in the audit and the said person may file his reply and the proper officer shall finalise the findings of the audit after due consideration of the reply furnished.
\nOn conclusion of the audit, the proper officer shall inform the findings of audit to the registered person in accordance with the provisions of sub-section (6) of section 65 in FORM GST ADT-02.
\nQ 36. Under what circumstances can a special audit be instituted?
\nAns. A special audit can be instituted in limited circumstances where at any stage of scrutiny, inquiry, investigation or any other proceedings, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue is of the opinion that
\n(i) the value has not been correctly declared or
\n(ii) the cre<\/p>\n
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\nFor instance, in case of fraud\/suppression cases, if the taxpayer pays the requisite tax with 18% interest and 15% penalty, no notice will be issued by department and proceedings would be concluded.
\nPost issue of notice, in case he pays the requisite tax, 18% interest and 25% penalty within 30 days, proceedings shall be concluded.
\nPost adjudication, in case he pays the requisite tax, 18% interest and 50% penalty within 30 days of order, proceedings shall be concluded
\nQ 40. What if Audit (Departmental \/ Compulsory audit by CA) is already conducted or being conducted?
\nAns. This audit will be in addition to the audit already conducted under any other statue. Section 66(3) overrides provisions of any audit conducted under this act or any other law.
\nQ 41. In what form and manner will a special audit be ordered and how will the result of such audit be communicated to the taxable person?
\nAns. Where special audit is requi<\/p>\n
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