GST Jamku AIAssessment of unregistered persons
Section 63
Notwithstanding anything to the contrary contained in section 73 or section 74, where a taxable person fails to obtain registration even though liable to do so or whose registration has been cancelled under sub-section (2) of section 29 but who was liable to pay tax, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgment for the relevant tax periods 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:
Provided that no such assessment order shall be passed without giving the person an opportunity of being heard.
In certain situations, when a person is supposed to register for taxes but doesn't or when their registration is canceled but they still owe taxes, the tax authorities can take action. This action involves assessing the tax amount that the person should have paid. Here, we'll break down the key points in simpler language.
Understanding the Situation: Imagine someone is supposed to register for taxes, but they don't. Or, if someone's tax registration is canceled, but they still owe taxes. In these cases, tax authorities have the right to figure out how much tax the person should have paid.
Time Limit for Assessment: The tax authorities can look into this for up to five years from the deadline set for submitting the annual tax return. This deadline is mentioned in section 44 for the financial year related to the unpaid tax.
Assessment Process: The tax officer will use their best judgment to estimate the amount of tax owed by the person. They will then issue an assessment order, which is an official document stating the calculated tax liability.
Important Point: Before issuing this assessment order, the person involved has the right to explain their side. This means they get a chance to speak up and share their perspective before any official decisions are made. This is a fair practice in the assessment process.