Under Section 62 of the Central Goods and Services Act, 2017 (CGST Act), tax authorities can issue an assessment order to taxpayers who have not correctly declared their tax liability. The tax authorities can issue an assessment order to a registered person who has failed to furnish the return, even after the service of a notice under section 46.This assessment order may result in additional tax liabilities, interest, and penalties, based on the best judgment of the authorities.The assessment process under the GST Act involves the issuance of assessment orders in specific forms. The forms for Issuance of Assessment Order (Section 62) are as under:
However, the CGST Act also provides relief in the form of withdrawal of the assessment order under specific conditions. If a registered person furnishes a valid return within 30 days from the date of service of the assessment order, the assessment order will be deemed to be withdrawn. A “valid return” means a return furnished under sub-section (1) of section 39 on which self-assessed tax has been paid in full. A “valid return” is defined under section 2(117) of the CGST Act.
Please note that the withdrawal of an assessment order under section 62 of the CGST Act is a discretionary power of the GST authorities. The GST authorities may not approve your request if they are not satisfied with the reasons you have given for withdrawing the assessment order. Here are some of the reasons that the GST authorities may consider when deciding whether to withdraw an assessment order under section 62 of the CGST Act:
If your request for withdrawal of the assessment order is approved, the GST authorities will issue an order withdrawing the assessment order. This order will have the effect of cancelling the assessment order and waiving the tax liability determined in the assessment order. You will also be entitled to a refund of any tax paid or determined in the assessment order.