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Self-Assessment 2017-04-13T23:50:55+00:00
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  • Ashish BadalaCA Ashish Badala
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    #941 |

    Every registered person shall self-assess the taxes payable under this Act and furnish a return for each tax period as specified under section 39.

    Priya MadrechaPriya Madrecha
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    59.1 Introduction
    In terms of Section 2(11) of the Act, “assessment” means determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgement assessment.
    The CGST Act contemplates several types of assessments as under:
    •    Self-assessment (Section 59)
    •    Provisional Assessment (Section 60)
    •    Summary Assessment in certain special cases (Section 64 )
    Additionally, the CGST Act also provides for determination of the tax liability by:
    •    Scrutiny of tax returns filed by registered taxable persons (Section 61 )
    •    Assessment of registered taxable person who have failed to file the tax returns (Section 62 )
    •    Assessment of unregistered persons (Section 63 )
    Section 59 refers to the assessment made by the taxable person himself while all other assessments are undertaken by tax authorities.
    Provisional assessment under Section 60 is an Assessment undertaken at the instance of the assessee. It is later followed by a final assessment. Section 61 which deals with scrutiny of returns is basically a pre-assessment procedure for the purpose of determination of tax liability and passing of an order under Section 73 of the Act. Assessments under Sections 62 and 63 are assessments undertaken by tax authorities on the principles governing best judgment assessment. Assessment under Section 64 refers to a protective assessment based on information gathered from intelligence wing of the tax authorities in a particular case.
    59.2    Analysis:
    Self-assessment means an assessment by the tax payer himself and not an assessment by the Proper Officer. The GST regime continues to promote the scheme of self-assessment. Hence, every registered taxable person would be required to assess his tax dues in accordance with the provisions of GST Act and report the basis of calculation of tax dues to the tax administrations, by filing periodic tax returns.
    Although the definition includes ‘reassessment’ there is no provision permitting ‘reexamination’ of an assessment (of any kind) conducted earlier by the same or any other officer. This drafting anomaly is yet to be corrected. Power to reassess cannot be inherent in the power to assess (of any kind) permitted in the Act.
    59.3    Comparison with equivalent provisions under other laws:
    The principles of self-assessment are presently contained in Central Excise Law, Service Tax Law as well as VAT Laws.
    Presently, Rule 6 of Central Excise Rules, provides that the assessee shall himself assess the duty payable on excisable goods (except in the case of cigarettes). As regards service tax, concept of self-assessment is envisaged in Section 70 of the Act which provides that every person liable to pay service tax shall himself assess the tax due on services Provided by him. State VAT laws also provide for filing of returns and payment of VAT on self-assessment basis [For instance, Section 20 of MVAT Act, 2002 or Section 38 of the Karnataka VAT Act, 2003]
    59.4    Related provisions
    Section / Rule / Form      Description
    Section 39     Returns
    59.5    FAQ
    Q1.     Who is the person responsible to make assessment of taxes payable under the Act?
    Ans. Every registered taxable person shall himself assess the taxes payable under this Act and furnish a return for each tax period as specified under Section 39.

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