Q. Whether Self-Assessment and provisional assessment are mutually exclusive?
Ans. Yes, if the taxable person opts for self-assessment, he cannot opt for provisional assessment for the same period for same supply. However, he can opt for provisional assessment if he is unable to determine taxable value / tax liability/ (rate of tax) for any subsequent periods.
Q. What is the time limit for passing final assessment order in case of provisional assessment?
Ans. The proper officer shall, within a period of six months from the date of communication of the provisional assessment order, pass the final assessment order after taking into account such information as may be required for finalizing the assessment. However, the time limit of six months can be further extended on sufficient cause being shown and for reasons to be recorded in writing in the following manner:
(a) by the Joint / Additional Commissioner for a further period of six months;
(b) by the Commissioner for such further period not exceeding four years.
Q. Can proper officer require the registered person to furnish additional documents before
issuing order for provisional assessment?
Ans. On receipt of the application, the proper officer may issue a notice in FORM GST ASMT-02 requiring the registered person to furnish additional information or documents in support of his request and the applicant shall file a reply to the notice in FORM GST ASMT-03, and may appear in person before the said officer if he so desires.
Q. Is there any form prescribed for execution of the bond?
Ans. The registered person shall execute a bond in accordance with the provisions of Section 60(2) in FORM GST ASMT-05 along with a security in the form of a bank guarantee for an amount as determined by the proper officer in his order.
Q. What will be the time limit and procedure for the release of security furnished with bond?
Ans. The applicant may file an application in FORM GST ASMT-08 for the release of the security furnished after issue of the final assessment order. The proper officer shall release the security furnished, after ensuring that the applicant has paid the amount specified in the final assessment order and issue an order in FORM GST ASMT–09 within a period of 7 working days from the date of the receipt of such application.
Q. Whether proper officer can reject the application to provisional assessment submitted by taxable person?
Ans. Yes. The provisions relating to provisional assessments provides discretionary powers on the proper officer to pass an order allowing the taxable person to remit tax on provisional basis.
Q. If a taxable person fails to file the return required under law (under section 39 (monthly/quarterly), or 45 (final return), what legal recourse is available to the tax officer?
Ans. The proper officer has to first issue a notice to the defaulting taxable person under section 46 of CGST/SGST Act requiring him to furnish the return within a period of fifteen days. If the taxable person fails to file return within the given time, the proper officer shall proceed to assess the tax liability of the return defaulter to the best of his judgement taking into account all the relevant material available with him. (Section 62).
Q. What will be the amount of bond and security to be furnished for provisional
Ans. The proper officer shall issue an order in FORM GST ASMT-04 allowing the payment of tax on a provisional basis indicating the following:
(a) the value or the rate or both on the basis of which the assessment is to be allowed on a provisional basis
(b) the amount for which the bond is to be executed
(c) security to be furnished not exceeding 25% of the amount covered under the bond.
The “amount” shall include the amount of IGST, CGST, SGST, UTGST and cess
payable in respect of the transaction.