Summary assessment in certain special cases Section 64 - GST Ready Reckoner - GST

Summary Assessment in some special cases Section 64(1) of CGST Act read with Rule 100 (3) to (5) of CGST Rules provides for summary assessment in certain specified cases or circumstances, i.e.: There being an evidence of tax liability of a person coming to notice of proper officer; To protect the interest of revenue; Deeming person in charge of goods to be taxable person where taxable person to whom tax liability pertains is not ascertainable. It may be noted that summary assessment under section 64 is a fast track assessment in the interest of revenue whereby the proper officer directly issues the assessment order after taking the permission of designated Additional Commissioner or Joint Commissioner, as the case may be. Summary assessment means determination of tax liability by proper officer on the basis of returns of taxable person and on any evidence in the possession of proper officer without calling the taxable person for his explanation/ clarifications. For the purpose of summary assessment, following points are important : It is mandatory for proper officer to obtain prior permission for initiating summary assessment under section 64 of CGST Act, 2017 Proper officer cannot initiate the proceedings suo moto on his own Summary assessment must be based on evidence Summary assessment cannot be initiated on the basis of opinion of proper officer as an opinion is not an evidence. Summary assessment can be initiated against any taxable person. Summary assessment can be initiated irrespective of the fact whether taxable person has filed the return or not. Summary assessment under section 64 of the CGST Act, 2017 , can therefore, be construed in some sense as a protective assessment carried out in circumstances, where there are grounds to believe that taxable person will fail to make payment of any tax, penalty or interest, if the assessment is not completed immediately. According to section 64(1) of the CGST Act, 2017 , provides that the proper officer needs to make a case for summary assessment on the basis of any evidence in his possession in respect of tax liability of a person. On such he is required to seek previous approval of Additional/Joint Commissioner for doing summary assessment. Thus, summary assessment can not be taken up by proper officer without seeking previous approval of Additional/Joint Commissioner. summary assessment order can be passed on person whether registered or not; In certain cases, like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax ( proviso to Section 64 of CGST /SGST Act). Deeming effect In cases the person who is supposed to be liable is not ascertainable, the provisions in this respect have been provided in section 64 of the CGST Act, 2017 as under: In case the person to whom the liability pertains is not ascertainable and the tax liability pertains to supply of goods, in such cases, the person in charge of such goods shall be deemed to be the taxable person liable to be assessed and pay tax. It may be noted that there is no deeming provision when unpaid tax liability relates to supply of services. Circumstances for withdrawal of summary assessment As provided in section 64(2) of the CGST Act, 2017 , a summary assessment order served by the proper officer under section 64(1) of the CGST Act, 2017 , can be withdrawn in following cases: (a) On an application by taxable person to be made by him within 30 days of receipt of order on him. (b) By Joint/Additional Commissioner suo-moto in case they consider that on facts and circumstances of the case, such summary order is erroneous. When a summary assessment order served by proper officer is withdrawn either on the application of taxable person or suo-moto by Joint/Additional Commissioner, as the case may be, the proper officer may start the proceedings for determination of tax under section 73 or section 74 [or Section 74A ( w.e.f. 01.11.2024 vide N.No. 17/2024 dated 27.09.2024 ) Inserted vide Finance (No. 2) Act, 2024 ] of the CGST Act, 2017 , as the case may be. It may be noted that every assessment order so withdrawn under section 64(2), must be followed by a notice under section 73 or section 74 [or Section 74A ( w.e.f. 01.11.2024 vide N.No. 17/2024 dated 27.09.2024 ) Inserted vide Finance (No. 2) Act, 2024 ]of the CGST Act, 2017 . The aggrieved person may file may file an application for withdrawal of the assessment order in FORM GST ASMT 17 . The order of withdrawal or, as the case may be, rejection of the application shall be issued in FORM GST ASMT- 18 . Order of summery assessment Before initiating summery assessment proper officer has take the previous permission of Additional Commissioner or Joint Commissioner. The order of assessment u/s 64(1) shall be issued in FORM GST ASMT-16 and a summary of the order shall be uploaded electronically in FORM GST DRC-07 .