GST Jamku AIAssessment of non-filers of returns
Section 62(1)
Notwithstanding anything to the contrary contained in section 73 or section 74, where a registered person fails to furnish the return under section 39 or section 45, even after the service of a notice under section 46, the proper officer may proceed to assess the tax liability of the said person to the best of his judgment 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.
When someone is registered for tax purposes, they are required to submit returns under specific sections. However, if a person fails to do so even after receiving a notice, the tax officer can assess their tax liability using the best information available. This process must be completed within five years from the specified date for annual return submission.
Section 73 and Section 74: Regardless of what is mentioned in section 73 or section 74, if a registered individual doesn't submit the required return under section 39 or section 45, the tax officer can take action. This action includes assessing the person's tax liability based on their best judgment.
Failure to Furnish Return: If a registered person fails to provide the necessary return after receiving a notice under section 46, the proper officer has the authority to assess their tax liability. This assessment is made using all relevant information at hand, or gathered, and is done within five years from the specified date under section 44.
Assessment Order: The result of this assessment is an official document known as an assessment order. This order outlines the tax liability of the person in question for the financial year in question. The aim is to ensure that taxes are paid as required, even if the individual did not submit the necessary returns.
Conclusion: In simple terms, if someone registered for taxes does not submit their returns, the tax officer can assess their taxes based on available information. This process is governed by specific sections and must be completed within a designated timeframe. The assessment order serves as an official document detailing the determined tax liability.
Section 62(2)
Where the registered person furnishes a valid return within [sixty days] of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of section 50 or for payment of late fee under section 47 shall continue:
Provided that where the registered person fails to furnish a valid return within sixty days of the service of the assessment order under sub-section (1), he may furnish the same within a further period of sixty days on payment of an additional late fee of one hundred rupees for each day of delay beyond sixty days of the service of the said assessment order and in case he furnishes valid return within such extended period, the said assessment order shall be deemed to have been withdrawn, but the liability to pay interest under sub-section (1) of section 50 or to pay late fee under section 47 shall continue.
When a registered person submits a valid return within sixty days of receiving an assessment order under sub-section (1), the order is considered withdrawn. However, certain financial obligations persist, such as the payment of interest under sub-section (1) of section 50 or a late fee under section 47.
Conditions for Withdrawal: If the registered person fails to submit a valid return within the initial sixty days after receiving the assessment order under sub-section (1), there is still an opportunity to do so. However, an additional late fee of one hundred rupees per day is applicable for each day of delay beyond the initial sixty days.
Extended Period for Filing: The registered person may furnish the return within an extended period of sixty days, provided the additional late fee is paid for the delayed filing. If a valid return is submitted within this extended period, the assessment order is deemed withdrawn. Nonetheless, the obligations to pay interest under sub-section (1) of section 50 or a late fee under section 47 remain in effect.
Conclusion: Filing returns in a timely manner is crucial to avoid financial penalties. While there is a window for late filing, it comes with added costs. Understanding and adhering to these provisions is essential for registered individuals to navigate the assessment process effectively.