Assessment of GST in India – Types, Procedures & Insights [2025]

The Goods and Services Tax (GST) system in India mandates transparent compliance and reporting. To ensure the correctness of returns filed and taxes paid, the GST law provides for various forms of assessment by the tax authorities. These assessments are essential for tax administration, verification of returns, and curbing tax evasion.

In this comprehensive article, we will explore the detailed provisions related to Assessment of GST under the CGST Act, 2017, covering the legal basis, types of assessment, procedures involved, latest updates, case laws, and FAQs.

📌 What is Assessment under GST?

Assessment under GST refers to the determination of tax liability by the taxpayer or by the tax authorities. Section 2(11) of the CGST Act defines ‘assessment’ as determination of tax liability under this Act and includes:

• Self-assessment
• Re-assessment
• Provisional assessment
• Summary assessment
• Best judgment assessment

✅ Importance of GST Assessment

GST assessment ensures correct compliance by the taxpayer and safeguards the revenue interests of the government. The key objectives include:

• Ensuring timely and accurate filing of returns
• Verifying the correctness of Input Tax Credit (ITC) claims
• Preventing tax evasion through audits and scrutiny
• Providing legal recourse to correct tax errors
• Protecting honest taxpayers by penalizing defaulters

📘 Types of GST Assessments (Overview)

The GST law provides for the following five types of assessment:

Let’s now understand each assessment in depth with procedure, forms, examples, and implications under GST law.

2. Types of GST Assessment

The GST law provides for various types of assessments to ensure the correct payment of tax. Each type is designed to address different circumstances and taxpayer behaviors. Below are the main categories of assessments under GST:

2.1 Self-Assessment (Section 59)

Self-assessment is the foundation of GST compliance. Every registered taxpayer is required to assess their own tax liability and file returns accordingly. It includes determining the output tax liability, claiming eligible input tax credit, and filing returns like GSTR-1, GSTR-3B, and GSTR-9.

• Based on the taxpayer’s own records and accounts.
• Returns must be filed monthly/quarterly/yearly as applicable.
• No specific permission from the department is required.

2.2 Provisional Assessment (Section 60)

In situations where the taxpayer is uncertain about the value of goods/services or applicable tax rate, they may request a provisional assessment.

• Application must be made to the proper officer (in Form GST ASMT-01).
• The officer may allow payment of tax on a provisional basis under conditions.
• Final assessment is done within six months (extendable).
• Interest is applicable on short-paid amounts once finalized.

2.3 Scrutiny Assessment (Section 61)

Scrutiny assessment is performed by tax authorities to verify the correctness of returns filed. It involves a detailed examination of filed returns and related documents.

• Discrepancies are communicated via Form GST ASMT-10.
• Taxpayer must respond using Form GST ASMT-11 within the given period.
• If accepted, the process ends. Otherwise, further action is initiated.

2.4 Best Judgment Assessment (Section 62 & 63)

This type of assessment is done when the taxpayer either fails to file a return or is an unregistered person liable to pay tax.

Section 62 – For Registered Persons

• Issued when a registered person fails to furnish returns.
• Assessment order is passed to the best of officer’s judgment (Form GST ASMT-13).
• If return is filed within 30 days, the order is withdrawn.

Section 63 – For Unregistered Persons

• Applicable when a person is liable to register but fails to do so.
• The proper officer assesses the tax due based on available data.

2.5 Summary Assessment (Section 64)

Summary assessment is undertaken to protect the interest of revenue. It is done only when there’s sufficient evidence of tax liability.

• Initiated only with prior permission from the Additional/Joint Commissioner.
• Used in urgent cases of revenue risk due to fraud or evasion.
• Assessment order is passed in Form GST ASMT-16.

These diverse types of assessments allow tax authorities to enforce compliance effectively while giving reasonable leeway to honest taxpayers. In the next part, we will explore the entire process and forms involved in GST assessments.

Part 3: Types of GST Assessments under CGST Act

GST law provides for multiple types of assessments, depending upon the situation and nature of the taxpayer’s compliance behavior. Let’s examine each type with its legal references and practical insights.

1. Self-Assessment (Section 59 of CGST Act)

This is the default mode of assessment under GST. Every registered taxable person shall assess his own tax liability and file returns under Section 39.

• Example: A business calculates its monthly sales, applies the correct GST rate, and files GSTR-3B and GSTR-1 accordingly.
• Note: Accuracy is critical. Incorrect returns can lead to notices, penalties, and audits.

2. Provisional Assessment (Section 60)

If a taxpayer is unable to determine the value of supply or the applicable rate of tax, they may request the proper officer to allow payment of tax on a provisional basis.

• Conditions: Application in Form GST ASMT-01 with justification.
• Order Issued: ASMT-04 within 90 days.
• Final Assessment: Officer must finalize within 6 months (extendable).

3. Scrutiny Assessment (Section 61)

Scrutiny of returns filed by the taxpayer to verify correctness. It is a routine check conducted by the department.

• Trigger: Discrepancies in returns such as GSTR-1 vs. GSTR-3B mismatch.
• Procedure: Notice in Form ASMT-10 → Taxpayer replies in ASMT-11 → Acceptance in ASMT-12.

4. Best Judgment Assessment (Section 62)

Used when a registered person fails to furnish a return even after receiving a notice under Section 46. The officer assesses the tax liability to the best of his judgment.

• Order: ASMT-13.
• Right to File: If return is filed within 30 days, order deemed withdrawn (no appeal required).

5. Assessment of Unregistered Persons (Section 63)

If a person liable to register under GST fails to obtain registration, the officer can assess the liability to the best of his judgment.

• Example: A trader whose turnover exceeds the threshold limit but never registered.
• Order: Passed in Form ASMT-15.

6. Summary Assessment (Section 64)

In cases where delay in assessment could adversely affect revenue, the officer can initiate summary assessment with prior permission from the Additional/Joint Commissioner.

• Nature: Swift and immediate.
• Use Case: Fraudulent issuance of invoices or major tax evasion.

Each type of assessment comes with its own compliance burden, formats, and legal implications. Taxpayers must understand which type may apply to them and maintain relevant documentation.