Assessment and scrutiny are often used interchangeably, but under GST they are distinct legal processes with different triggers, procedures, and consequences. Scrutiny under Section 61 is a desk-based review of returns. Assessment under Sections 62, 63, and 64 is a determination of tax liability where returns have not been filed or where urgent action is required.
This article explains the differences and the practical implications for taxpayers.
Scrutiny Under Section 61
Scrutiny is triggered when the GST officer finds discrepancies in the returns filed by the taxpayer. The notice is issued in Form GST ASMT-10 , requiring a response within 30 days. The taxpayer responds in Form GST ASMT-11 . If the explanation is accepted, the officer may close the matter in Form GST ASMT-12 .
Scrutiny is a desk-based process — no physical inspection is involved.
Assessment Under Sections 62, 63, and 64
- Section 62 (Best Judgment Assessment): For registered persons who fail to file returns. The officer assesses liability based on available information. The order can be withdrawn if returns are filed within 30 days.
- Section 63 (Assessment of Unregistered Persons): For persons who were liable to register but failed to do so, or whose registration was cancelled. The officer assesses liability on a best judgment basis.
- Section 64 (Summary Assessment): For special cases where urgent action is necessary to protect revenue. Requires approval from the Additional/Joint Commissioner.
Key Differences
| Feature | Scrutiny (Section 61) | Assessment (Sections 62–64) |
|---|---|---|
| Trigger | Discrepancies in filed returns | Non-filing, unregistered, urgent cases |
| Process | Desk-based review | Determination of liability |
| Notice form | ASMT-10 | Varies by section |
| Response form | ASMT-11 | Varies |
| Consequence | Explanation or demand | Assessment order |
Practical Response Steps
- For scrutiny: Analyse discrepancies, reconcile data, file ASMT-11 within 30 days.
- For Section 62: File pending returns within 30 days to withdraw the order.
- For Section 63: Respond with evidence of non-liability or correct liability.
- For Section 64: Apply for withdrawal within 30 days.
Conclusion
Scrutiny is a review of filed returns; assessment is a determination of liability where returns are not filed or where urgent action is required. Understanding the distinction is essential for choosing the right response strategy.
At Anuj Desai & Associates, we provide expert representation services for GST scrutiny and assessment proceedings. Our team can help you respond effectively and protect your interests.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.