SUMMARY ASSESSMENT - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

10. SUMMARY ASSESSMENT 10.1 Summary assessment means a fast-track assessment based on the return filed by the taxpayer and is done in certain special cases to protect the interest of revenue. Summary assessment is usually done in cases of defaulting or absconding taxpayers when the tax authorities believe that the taxpayer is trying to evade tax or when there is a threat to revenue. 10.2 Before initiation of Summary Assessment, there must be evidence of tax liability and the proper officer should have sufficient ground that delay in assessment may adversely affect the interest of revenue. Therefore, the assessment is required to be completed on priority basis without the presence of the taxpayer. 10.3 Section 64 of the CGST Act, 2017 empowers the proper officer to carry out Summary Assessment with prior permission of the Additional Commissioner or Joint Commissioner, if he has evidence that the taxpayer has incurred a liability to pay tax and has sufficient ground to believe that delay in passing order will adversely affect the interest of revenue. That means, Summary Assessment cannot be initiated by the proper officer suo-moto. 10.4 Summary assessments are often carried out in situations where it is not possible to identify the taxable person concerned in a case of supply of goods. If some person comes forward to claim the ownership of the unaccounted goods and to pay tax thereon, then for that he will be the taxable person. When the taxable person is not ascertainable then as per proviso to Section 64(1) of the CGST Act, 2017, in such cases the person incharge of such goods at that relevant time shall be deemed to be the taxable person and the tax liability is fastened on such person. 10.5 The procedure to be followed in respect of Summary Assessment is provided in Rule 100 of the CGST Rules, 2017. 10.6 There is no provision to issue any notice before passing the assessment order. However, opportunity to produce documents showing details of goods and to prove that such goods are accounted is given during the course of the Summary Assessment proceedings. 10.7 Rule 100(3) CGST Rules, 2017 provides for issuance of order of assessment in FORM GST ASMT-16 and the summary of the order shall be uploaded electronically in FORM GST DRC-07. 10.8 No time limit has been prescribed for passing the above said order. It is necessary to pass a speaking order containing introduction, discussion and finding, conclusion, amount of all applicable taxes (CGST/SGST/IGST) assessed, interest and penalty payable. 10.9 Section 64(2) of the CGST Act, 2017 provides that the taxable person against whom the Summary Assessment order is passed, can apply to the Additional Commissioner or Joint Commissioner electronically in FORM GST ASMT-17 [Rule 100(4) of CGST Rules, 2017] for withdrawal of said order, within 30 days from the date of receipt of the order. The Additional Commissioner after considering the grounds made by such taxable person in his application, shall either withdraw the Summary Assessment order if the same is found erroneous or reject the application if the grounds are not legally acceptable. The order of withdrawal of Summary Order or rejection of the application of taxable person, has to be issued in FORM GST ASMT-18 [Rule 100(5) of CGST Rules, 2017.].