Section 62 of CGST Act 2017: Assessment of Non-filers of Returns

Provisions under Section 62 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Assessment of Non-filers of Returns”:

Section 62 of CGST Act 2017: Assessment of Non-filers of Returns (CHAPTER XII – ASSESSMENT)

(1) Notwithstanding anything to the contrary contained in section 73 or section 74, where a registered person fails to furnish the return under section 39 or section 45, even after the service of a notice under section 46, the proper officer may proceed to assess the tax liability of the said person to the best of his judgement taking into account all the relevant material which is available or which he has gathered and issue an assessment order within a period of five years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates.

(2) Where the registered person furnishes a valid return within thirty days sixty days [text substituted from 01/10/2023: refer Note 1(a)] of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of section 50 or for payment of late fee under section 47 shall continue. [Note 1(a)]

Provided that where the registered person fails to furnish a valid return within sixty days of the service of the assessment order under sub-section (1), he may furnish the same within a further period of sixty days on payment of an additional late fee of one hundred rupees for each day of delay beyond sixty days of the service of the said assessment order and in case he furnishes valid return within such extended period, the said assessment order shall be deemed to have been withdrawn, but the liability to pay interest under sub-section (1) of section 50 or to pay late fee under section 47 shall continue. [proviso inserted from 01/10/2023: refer Note 1(b)]

Amendments History:

1. Amendments vide Section 148 of the Finance Act, 2023, followed with Notification 28/2023 on commencement date of 01/10/2023:

(a) in sub-section (2) the words “thirty days”, substituted with the words “sixty days”; and

(b) proviso inserted in sub-section (2).

—-