SELF-ASSESSMENT UNDER GST

[Dr. Sanjiv Agarwal]

Every registered person shall self-assess the taxes payable under this Act and furnish a return for each tax period as specified under section 39. [Section 59]

Self Assessment

As per section 59 of the CGST Act, 2017, self-assessment is required to be done by every registered taxable person himself, in relation to taxable supply made, on the basis of accounts and records available with him and furnish return under section 39 for each period and pay declared tax thereon.

Accordingly, following are the important points to be noted for the purpose of self assessment:

1. Self-assessment shall be done by every registered person.
2. It involves self assessment of taxes payable.
3. To self assess implies assessment by the tax payer himself.
4. Tax return has to be filed for each tax period in terms of section 39 of CGST Act, 2017.

It may be noted that provisions relating to furnishing of returns are provided in section 39 of CGST Act, 2017 read with sections 37 to 48 of CGST Act, 2017 in Chapter IX of the Act, relating to various returns to be filed by the taxpayer. Further, rules 59 to 84 of CGST Rules, 2017 provides for forms and manner of filing different returns under the Act.

List of returns to be filed under section 39 of CGST Act, 2017

The returns to be filed by registered person, inter alia, include the following :

S.No.	Return Form	To be used for
	GSTR 1	Statement of Outward Supplies
	GSTR 3B	Return for normal taxpayer / QRMP
	GSTR 4	Return for composition taxpayer
	GSTR 5	Return for non-resident taxpayer
	GSTR 6	ISD
	GSTR 7	TDS
	GSTR 8	TCS
	GSTR 9	Annual Return
	GSTR 9 A	Annual return for composition taxpayer
	GSTR 9C	Reconciliation statement
	GSTR 10	Final return
	GSTR 11	Statement of inward supplied by UIN holders
	CMP 08	Statement of payment of self-assessed tax
	ITC -01	Declaration of ITC on opening stocks
	ITC -02	Transfer of ITC
	ITC -03	Reversal of ITC on closing stocks
	ITC -04	Job-work transactions

Conditions Precedent

1. Only registered person is required to self assess under section 59 of CGST Act, 2017.
2. Self assessment does not apply to unregistered person.
3. Obligations to determine tax payable and filed applicable return are co-terminus.
4. There is no departmental assessment in case of self – assessment.
5. Since it is a case of self assessment, burden of proof of such assessment lies on the taxpayer only unlike in case of suppression.

Verification of Self Assessment

Though, self assessment does not involve any assessment on the part of revenue authorities, a wrong self assessment may have the consequences of attracting the following provisions from Department’s  point of view.

Section	Relating to
60	Provisional assessment
61	Scrutiny of returns
62	Assessment of non-filers of returns
63	Assessment of unregistered persons
64	Summary assessment in certain special cases
65	Audit by tax authorities
66	Special audit
67	Power of inspection, search and seizure
68	Inspection of goods in movement
69	Power to arrest
70	Power to summon persons to give evidence and produce documents
71	Access to business premises
72	Officers to assist proper officers

Stages in self assessment

The self assessment under GST involves the following steps on the part of taxpayer:

Registration of tax payer

Determination of tax payable

Payment of tax

Filing of returns

Relevant  judicial pronouncements

• In  M/S. JAAP AUTO DISTRIBUTORS VERSUS THE ASSISTANT COMMISSIONER OF CUSTOMS [2017 (10) TMI 881 - MADRAS HIGH COURT], where the petitioner challenged the assessment order on the ground that officer  passing order imposing 18% IGST on imported goods (tiller blades) had no  jurisdiction to assess, it was held that since petitioner by himself was asking assessing officer to issue a speaking order, thereby admitting jurisdiction of such officer to assess IGST on imported goods, hence jurisdiction ground could not be raised at this stage.

Further, the court observed that a writ court cannot make a fact finding exercise to ascertain, which would be an appropriate entry under which the goods are to be classified. Infact, under the normal course, in respect of classification disputes, the High Court cannot entertain an appeal against an order passed by the Cestat as the appeal lies to the Hon'ble Supreme Court in respect of classification issues or matters concerning rate of tax. Court did not venture into as what would be the appropriate classification of the goods as this exercise being a factual exercise has to be necessarily agitated before the appellate authority.

• In DELPHI TVS TECHNOLOGIES LIMITED VERSUS THE ASSISTANT COMMISSIONER (ST) , THE ASSISTANT COMMISSIONER (ST) [2019 (9) TMI 572 - MADRAS HIGH COURT], Assessing Officer passed the assessment order on assessee and  the assessee filed a writ petition challenging the said order on the ground that it was not given time to file objections in response to notices of proposals dated 21.02.2019 for the period 20.12.2013 to 2016-17.

The assessee through their letters dated 15.03.2019, requested the Assessing Officer to give them time upto 15^th April, 2019 for submission of reply by stating that they need to collect more data to justify their time and that they are also preparing GSTR-2A reconciliation against their input credit taken in monthly return.

Since the assessee had sought for time to file its objections, but the order of assessment was passed simply by confirming proposals in absence of any objection from assessee, the court remitted back the matter to Assessing Officer to redo assessment after receiving reply from the assessee.

Discussions to this article

[Bharat Cholleti]

sir,

namasthe, kindly analyze the Bharati Airtel - 2021 (11) TMI 109 - SUPREME COURT where Supreme court has rejected the claiming of refund of ₹ 900 Cr(approx) and how it becomes important in filing of returns

[Ganeshan Kalyani]

The cited SC case clarifies that GSTR-2A is only a facilitation made available to a taxpayer. However tax payer has to take ITC as per his books only.

[Dr. Sanjiv Agarwal]

Bharat Cholleti

Will try to attempt.

Sanjiv Agarwal

[Dr. Sanjiv Agarwal]

Ganeshan Kalyani

You are right Sir,

Sanjiv Agarwal