Assessment Under Section 64 of CGST Act: Summary Assessment Explained

Section 64 of the CGST Act is an extraordinary power given to the Department to protect revenue in urgent cases. It is used where the Proper Officer has sufficient grounds to believe that any delay in assessment may adversely affect the interest of revenue. In simple words, it is a fast-track and protective assessment mechanism meant for exceptional situations.

When Can Section 64 Be Invoked?

Summary assessment can be initiated only when:

• The Proper Officer has evidence showing tax liability, and
• Previous permission of the Additional Commissioner or Joint Commissioner is obtained.

Thus, it is not an ordinary power and cannot be exercised casually. The requirement of prior sanction from a senior officer acts as a safeguard against misuse.

How Does It Work?

Once approval is taken, the Proper Officer may pass the assessment order in FORM GST ASMT-16. The summary of this order is uploaded in FORM GST DRC-07, which also operates as a demand order and may trigger recovery proceedings if not challenged in time.

Important Point: Deeming Fiction for Goods

If the actual taxable person is not ascertainable in case of supply of goods, the person in charge of the goods may be deemed to be the taxable person liable to pay tax. However, no such deeming fiction exists for services. This distinction is critical in cases involving transit goods, unaccounted stock, or third-party carriers.

Can the Order Be Challenged?

Yes. The assessed person may apply for withdrawal of the summary assessment order using FORM GST ASMT-17 within 30 days from the date of the order.

• The Additional/Joint Commissioner may withdraw or reject the application through FORM GST ASMT-18.
• Suo motu withdrawal is also possible if the order is found to be erroneous — after which normal proceedings under Section 73 / 74 / 74A may follow.

Why Is This Provision Serious?

Because summary assessment is generally ex parte — meaning the initial order can be passed without prior hearing to the taxpayer. If the taxpayer neither succeeds in withdrawal nor files an appeal within time, the liability may become final and recoverable.

This makes it essential for businesses to monitor GST portal notifications closely. An ASMT-16 order overlooked can quickly translate into a DRC-07 demand with recovery consequences, including bank account attachment.

Section 64 in the Larger GST Assessment Framework

Section 64 is fundamentally different from other forms of GST assessment:

• Self-assessment (Section 59) — taxpayer assesses and pays on their own.
• Provisional assessment (Section 60) — used when the taxpayer cannot determine the value or applicable rate.
• Scrutiny assessment (Section 61) — officer scrutinises filed returns for discrepancies.
• Best judgment assessment (Section 62) — used when returns are not filed despite notice.
• Summary assessment (Section 64) — an emergency provision designed only for urgent revenue protection and not for routine assessment.

Section 64 should be invoked only in genuine cases of urgency, and any order passed under it remains open to challenge through the ASMT-17 withdrawal route or by filing an appeal before the Appellate Authority under Section 107 of the CGST Act.

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