GST Appeals & Assessment

GST Services

GST Appeals & Assessment Services by Deepak Prakash & Associates

The Goods and Services Tax (GST) regime in India has brought about significant changes to the tax landscape. However, with any tax system, disputes and disagreements are inevitable. For taxpayers who find themselves at odds with the decisions or assessments made by GST authorities, understanding GST Appeals and GST Assessments is crucial.

In this comprehensive guide, we will delve into the entire process of GST Appeals & Assessment, explaining each step and the avenues available to taxpayers for resolving disputes.

Understanding GST Appeals & Assessments is crucial for businesses operating under the GST framework in India. Whether you’re undergoing self-assessment, scrutiny, or facing disputes, knowing the steps involved in the GST Appeal process will help ensure that you can address any issues or discrepancies effectively.

Deepak Prakash & Associates, a leading Chartered Accountancy firm in Jaipur, offers expert guidance on GST Assessments, GST Appeals, and all tax-related matters. Our team ensures that your business remains compliant with GST laws, helps you handle disputes efficiently, and assists in resolving any tax-related concerns. For professional advice and representation, feel free to reach out to us.

What is GST Assessment?

GST Assessment refers to the process by which tax authorities evaluate and verify the details of a taxpayer’s returns and other relevant documents to determine the correct tax liability. The assessment process helps ensure that the correct amount of tax is paid by the taxpayer.

There are different types of assessments under GST, depending on the situation and nature of the taxpayer’s activities. These assessments are carried out by the GST Department to verify the information and compliance of the registered taxpayer.

Types of GST Assessments

Self-Assessment:

This is the most common form of assessment under GST. The taxpayer is responsible for determining the amount of tax payable and for filing the correct return (e.g., GSTR-3B or GSTR-1).
The taxpayer calculates and pays taxes on their own, based on their records and returns. However, this assessment is subject to scrutiny by the authorities.

Summary Assessment:

A summary assessment occurs when the GST Officer carries out an expedited assessment of the taxpayer’s return, usually due to some urgency or need for immediate tax determination. This type of assessment is typically done when there is a suspicion of tax evasion, or the business has failed to file its returns for multiple periods.

Scrutiny Assessment:

Under Section 61 of the GST Act, the GST authorities have the power to scrutinize the returns filed by taxpayers to ensure that the declared information is correct and that the taxes are paid accordingly. This assessment involves a detailed verification of the taxpayer’s records, such as invoices, tax payments, and returns.
If discrepancies are found during scrutiny, the authorities may issue a show-cause notice for further action.

Best Judgment Assessment:

This type of assessment is used when a taxpayer fails to file GST returns or the returns filed are incomplete or incorrect. In such cases, the GST authorities will carry out an assessment based on their best judgment, considering available information, records, and past tax behavior.
Under Section 62 of the GST Act, if a taxpayer does not respond to notices or fails to file returns, the authorities may assess the tax liability using available records or estimates.

Audit Assessment:

Under Section 65, the GST authorities may carry out an audit of the taxpayer’s records and returns to ensure that they are in compliance with the GST law. This may involve a physical audit of the business premises, books of accounts, and invoices.
After the audit, the authorities will issue an audit report and may take necessary action, including issuing a show-cause notice for any discrepancies found.

Assessment in Case of Non-Filers:
- For taxpayers who have not filed their GST returns for an extended period, the authorities may carry out an assessment to determine their tax liability. The taxpayer may be penalized for non-compliance, and penalties or interest may be levied on the outstanding taxes.

What is GST Appeal?

An GST Appeal is a process by which a taxpayer can challenge or dispute the decisions made by the GST authorities regarding assessments, penalties, or any other actions that affect the taxpayer’s business. If a taxpayer is dissatisfied with the order passed by a GST officer or any other authority, they have the right to appeal and seek a fair hearing to resolve the issue.

There are two primary levels of appeal:

Appeal to the First Appellate Authority (GST Appellate Tribunal or Commissioner):

If a taxpayer disagrees with the assessment or decision made by a GST officer, they can appeal to the First Appellate Authority (usually the Commissioner or Appellate Officer) within 3 months from the date of the order.

Appeal to the Appellate Tribunal:

If the taxpayer is not satisfied with the decision of the First Appellate Authority, they can further appeal to the GST Appellate Tribunal. This is the second level of appeal and may involve more detailed legal scrutiny.

Appeal to the High Court:

After exhausting all options with the Appellate Tribunal, if the taxpayer is still dissatisfied, they can file an appeal with the High Court within 180 days from the date of the Tribunal’s order. The High Court can issue directions on the legal validity of the tax authorities’ actions.

Appeal to the Supreme Court:
- The final level of appeal, if the taxpayer is still unsatisfied with the High Court’s decision, is to approach the Supreme Court.

Key Points to Remember in GST Appeals & Assessments

Legal Recognition of Your Business:
- GST Registration gives a legal recognition to your business, ensuring that your transactions are formal and legitimate.
Input Tax Credit (ITC):
- Registered businesses can claim input tax credit (ITC) on the taxes paid for their purchases, reducing the overall tax liability. This is one of the key benefits of GST registration, as it promotes tax efficiency.
Expansion of Market:
- With GST Registration, you can expand your market to other states as you are allowed to make interstate sales.
Enhances Business Credibility:
- GST Registration improves your business’s credibility in the market. Customers and suppliers often prefer dealing with a GST-registered entity for their legal and tax-related concerns.
Avoid Penalties:
- Non-compliance with GST registration requirements can lead to heavy fines and penalties. Registering your business for GST ensures that you comply with the law and avoid such penalties.