Assessment of Non-Filers under GST: Understanding FORM GST ASMT-13

(Sections 59-64) of the Central Goods and Services Tax Act, 2017 (CGST Act), FORM GST ASMT-13 is the prescribed document for the Assessment Order issued under Section 62: Assessment of Non-Filers of Returns. This form is central to the process of determining the tax liability of registered persons who have failed to furnish their returns. 

What is FORM GST ASMT-13?

FORM GST ASMT-13 is the Assessment Order under Section 62. It is specifically issued for assessments made under sub-section (1) of Section 62. This order signifies the culmination of the best judgment assessment process for registered persons who have defaulted on their return filing obligations.

Issuance and Communication

The Proper Officer is responsible for issuing the assessment order in FORM GST ASMT-13. Once issued, a summary thereof shall be uploaded electronically in FORM GST DRC-07. The communication to the registered person involves both FORM GST ASMT-13 and FORM GST DRC-07. This electronic uploading and communication ensures that the taxpayer is formally informed of the assessed tax liability.

Implications of FORM GST ASMT-13

The issuance of FORM GST ASMT-13 carries significant implications for the registered person:

• Best Judgment Assessment: The order in FORM GST ASMT-13 is the result of a "best judgment assessment" by the Proper Officer. This assessment is made when a registered person fails to furnish a return under Section 39 (regular returns) or Section 45 (final returns) even after being served a notice under Section 46 (FORM GSTR-3A). The officer considers all available and gathered material to assess the tax liability.

• Demand for Recovery: The issuance of FORM GST ASMT-13, combined with the summary in FORM GST DRC-07, signifies that the demand made in the order will lead to the recovery of the tax assessed. FORM GST DRC-07 itself is treated as the notice for recovery.

• Time Limit for Issuance: The order in FORM GST ASMT-13 must be issued within a period of five years from the due date for furnishing the annual return (Section 44) for the financial year to which the unpaid tax relates.

• Withdrawal of Order: A unique aspect of Section 62 is that the assessment order in FORM GST ASMT-13 can be deemed to have been withdrawn if the registered person furnishes a "valid return" within sixty days of the service of the assessment order. This period was initially thirty days but has been extended. If not filed within 60 days, it can be filed within a further 60 days with an additional late fee. The Government has also provided amnesty schemes for the deemed withdrawal of orders issued in FORM GST ASMT-13 for certain periods.

• Continuation of Interest and Late Fee: Even if the order in FORM GST ASMT-13 is withdrawn, the liability for interest under Section 50(1) and late fee under Section 47 shall continue.

• Finality and Appeal: If a valid return is not filed within the initial and extended periods, the assessment order in FORM GST ASMT-13 becomes final and cannot be withdrawn. In such cases, the only remedy available is to file an appeal under Section 107. If the appeal period also lapses, the demand arising from FORM GST ASMT-13 becomes final and payable, potentially leading to recovery actions.

FORM GST ASMT-13 in the Larger Context of Assessment (Sections 59-64)

FORM GST ASMT-13 and the assessment it represents are crucial within the overall Chapter 13 framework:

• Enforcement Tool: It serves as a key enforcement tool for the tax authorities when a taxpayer deviates from the self-assessment principle (Section 59) by failing to file returns.

• Distinction from other assessments: Unlike Provisional Assessment (Section 60) which addresses taxpayer uncertainty, or Scrutiny of Returns (Section 61) which verifies filed returns, FORM GST ASMT-13 is an ex-parte determination of liability for non-compliance. It also differs from the Assessment of Unregistered Persons (Section 63) in that Section 62 and FORM GST ASMT-13 apply to registered persons who fail to file returns, while Section 63 applies to unregistered persons.

• Link to Demand and Recovery: The demand established by FORM GST ASMT-13 and FORM GST DRC-07 can directly lead to recovery proceedings under Section 79 if the amount remains unpaid. Proceedings under Section 62 (which culminates in FORM GST ASMT-13) can also trigger provisional attachment of property under Section 83 to protect revenue.

• Non-Obstante Clause: Section 62 begins with a non-obstante clause, meaning its provisions (including the issuance of FORM GST ASMT-13) can be invoked notwithstanding anything to the contrary contained in Section 73 or 74 (or Section 74A). This allows the Proper Officer to assess and demand tax without the full show cause notice and hearing procedure mandated by those sections for non-fraud and fraud cases, respectively.

In summary, FORM GST ASMT-13 is the specific order through which the tax liability of registered non-filers is formally assessed under Section 62, acting as a critical instrument for enforcement and revenue protection within the GST assessment framework.

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