5 Key Points about GST Provisional Assessment
Key Point -1
Provisional Assessment under Section 60 of CGST Act is an assessment undertaken at the request of the registered person.
The provisional assessment cannot be resorted to by the proper officer on a suo-motu basis.
Key Point -2
The facility of provisional assessment is available only in the cases of Valuation and determination of rate of GST.
The provisions of provisional Assessment cannot be extended for any other purposes or subject matter. Thus Provisional Assessment can not be applied in case of determination of
- Place of supply (IGST or CGST-SGST) ,
- time of supply,
- supplies to be treated as “supply of goods” or “supply of services” ,
- admissibility of ITC,
- Amount of reversal of ITC,
- whether a particular action is supply or not.etc
Key Point -3
In normal cases ,GST Officer can not reject application for provisional Assessment.
The proper officer shall issue an order in FORM GST ASMT-04 allowing the payment of tax on a provisional basis indicating the value or the rate or both on the basis of which the assessment is to be allowed on a provisional basis.
Key Point -4
Provisional Assessment is followed by a final Assessment .
Registered person may also be required to execute a bond in the prescribed form, and with such surety or security as the proper officer may deem fit.
Key Point -5
If the amount of tax determined to be payable under final assessment order, is more than the
tax which is already paid along with the return filed in terms of section 39 based on provisional Assessment, the registered person shall be liable to pay interest on the shortfall.
If the amount of tax determined to be payable under final assessment order, is Less than the
tax which is already paid along with the return filed in terms of section 39 based on provisional Assessment, the registered person may claim Refund ( subject to the concept of “unjust enrichment).and Interest will also be paid on such refund.
Refer ” Detailed Video on Provisional Assessment under GST
In this Video you will get answer of following Questions :-
- What is Provisional Assessment under CGST Act ?
- What should taxable person do for getting provisional Assessment under CGST Act ?
- How should a person apply for provisional Assessment under CGST Act on GST Portal?
- How should GST Officer issue Order for provisional Assessment under CGST Act ?
- When should Final Assessment be done after provisional Assessment under CGST Act ?