Section 62 of the CGST Act empowers the proper officer to conduct a best judgment assessment when a registered person fails to furnish returns — even after service of a notice under Section 46. The assessment is based on the information available with the officer.
This article explains the best judgment assessment process and the taxpayer's options.
When Section 62 Is Invoked
- The registered person fails to file GSTR-1, GSTR-3B, or the annual return.
- A notice under Section 46 has been served and the default continues.
- The officer proceeds to assess liability based on available information.
The Assessment Order
The officer issues an assessment order within five years from the due date of the annual return for the financial year to which the tax relates.
The Withdrawal Mechanism
If the taxpayer files the pending returns within 30 days of receiving the assessment order, the best judgment order is deemed to be withdrawn. However:
- Interest and late fees remain payable.
- The taxpayer must file all pending returns.
- The withdrawal is automatic upon filing.
Practical Response Steps
- File all pending returns immediately.
- Pay the tax, interest, and late fees.
- Verify that the best judgment order is withdrawn.
- If the order is not withdrawn automatically, apply for rectification.
- Respond to any subsequent notices from the department.
Conclusion
Best judgment assessment under Section 62 is a curable default. By filing returns within 30 days, the taxpayer can get the order withdrawn. The key is to act immediately upon receiving the order.
At Anuj Desai & Associates, we provide expert assistance in responding to best judgment assessments and filing pending returns. Our team can help you resolve non-filing issues.
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.