Understanding Section 62: Withdrawal of Assessment Order Under CGST Act 2017

Overview : The Tax Authorities can issue an assessment order to a registered person who has failed to furnish their tax liability correctly. Depending on the authorities’ judgment, this order may attract additional tax liabilities, interest, and penalties. The assessment process under the GST Act involves the issuance of assessment orders in specific forms. This blog explores the conditions for withdrawal of an Assessment Order in detail.

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:

Assessment made under sub-section (1) of section 62 is issued in FORM GST ASMT-13.
A summary of the assessment order is electronically uploaded in FORM GST DRC-07.

Conditions for Withdrawal of Assessment Order:

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valid return within 30 days from the date of service of the assessment order, the assessment order will be deemed to be withdrawn.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.

Application Should Contains Following	Government Considerations
A taxpayer can file an application for withdrawal of the assessment order in prescribed manner and must be accompanied by the following documents: A copy of the assessment order. A declaration from the taxpayer stating that the amount of tax determined in the assessment order has been paid A copy of the valid return that was filed for the period covered by the assessment order. A copy of the payment receipt for the tax and interest that was paid in full.	The CBIC will consider the application for withdrawal of the assessment order on a case-by-case basis. If the CBIC is satisfied that the taxpayer has met all of the conditions of the amnesty scheme, it will withdraw the assessment order.The withdrawal of an assessment order under section 62 of the CGST Act will have the following effects: The assessment order will be deemed to have been cancelled. The tax liability determined in the assessment order will be deemed to have been waived. The interest and penalty imposed under the GST Act in relation to the assessment order will be deemed to have been waived. The taxpayer will be entitled to a refund of any tax paid or determined in the assessment order.

Application Should Contains Following

Government Considerations

A taxpayer can file an application for withdrawal of the assessment order in prescribed manner and must be accompanied by the following documents:

A copy of the assessment order.
A declaration from the taxpayer stating that the amount of tax determined in the assessment order has been paid
A copy of the valid return that was filed for the period covered by the assessment order.
A copy of the payment receipt for the tax and interest that was paid in full.

The CBIC will consider the application for withdrawal of the assessment order on a case-by-case basis. If the CBIC is satisfied that the taxpayer has met all of the conditions of the amnesty scheme, it will withdraw the assessment order.The withdrawal of an assessment order under section 62 of the CGST Act will have the following effects:

The assessment order will be deemed to have been cancelled.
The tax liability determined in the assessment order will be deemed to have been waived.
The interest and penalty imposed under the GST Act in relation to the assessment order will be deemed to have been waived.
The taxpayer will be entitled to a refund of any tax paid or determined in the assessment order.

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:

The assessment order was issued in error.
The assessment order was issued on the basis of incorrect information provided by the taxpayer.
The taxpayer has already paid the tax determined in the assessment order.
The taxpayer has already been penalized for the tax determined in the assessment order.

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.

Conclusion

In case of improper GST filing, the tax authorities can issue an assessment order to the taxpayers under Section 46 of the Central Goods and Services Act, 2017 (CGST Act). The Assessment Process mainly consists of the issuance of Assessment orders in specific forms. The CGST Act also grants relief in withdrawal of the Assessment order under specific conditions. Hopefully, this post has provided a comprehensive understanding of the Withdrawal of Assessment Order under Section 62.

Understanding Section 62: Withdrawal of Assessment Order Under CGST Act 2017

Conditions for Withdrawal of Assessment Order:

Conclusion

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