Section 64 of CGST Act 2017: Summary Assessment in Certain Special Cases

Provisions under Section 64 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Summary Assessment in Certain Special Cases”:

Section 64 of CGST Act 2017: Summary Assessment in Certain Special Cases (CHAPTER XII – ASSESSMENT)

(1) The proper officer may, on any evidence showing a tax liability of a person coming to his notice, with the previous permission of Additional Commissioner or Joint Commissioner, proceed to assess the tax liability of such person to protect the interest of revenue and issue an assessment order, if he has sufficient grounds to believe that any delay in doing so may adversely affect the interest of revenue:

Provided that where the taxable person to whom the liability pertains is not ascertainable and such liability pertains to supply of goods, the person in charge of such goods shall be deemed to be the taxable person liable to be assessed and liable to pay tax and any other amount due under this section.

(2) On an application made by the taxable person within thirty days from the date of receipt of order passed under sub-section (1) or on his own motion, if the Additional Commissioner or Joint Commissioner considers that such order is erroneous, he may withdraw such order and follow the procedure laid down in section 73 or section 74.

Amendments History:

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Commentary on Section 64 of the CGST Act

Section 64 of the Central Goods and Services Tax (CGST) Act, 2017, deals with the “Summary assessment in certain special cases.” This section outlines the process and circumstances under which a summary assessment can be conducted by the proper officer. Here’s a detailed commentary on Section 64:

i) Circumstances for summary assessment: Section 64(1) states that a proper officer may, on any evidence showing a tax liability of a person during a certain period, conduct a summary assessment in special cases to protect the interest of revenue.

The circumstances that warrant a summary assessment are not explicitly defined in the Act. However, it is generally understood that summary assessments are performed when there is an immediate risk to revenue collection, such as when a taxable person attempts to evade taxes or is likely to become untraceable.

ii) Prior permission from the Additional/Joint Commissioner: As per Section 64(1), before conducting a summary assessment, the proper officer must obtain written permission from the Additional or Joint Commissioner of Central Tax.

iii) Service of order: Once the assessment is conducted, the proper officer must serve an order of summary assessment within a period of thirty days from the date of the order. The order should contain the taxable value, the tax rate, the amount of tax, and other relevant details.

iv) Rectification of errors: Section 64(2) allows the assessed person to apply for the cancellation of the summary assessment order if they believe that the order was passed due to a non-fraudulent error. They must submit a written application to the proper officer within thirty days from the date of receipt of the order, explaining the error and providing evidence to support their claim.

v) Cancellation of the order: Upon receipt of the application, the proper officer must review the application and the evidence provided. If they are satisfied that the order was indeed passed due to a non-fraudulent error, they must cancel the order within thirty days from the date of receipt of the application and inform the assessed person accordingly.

vi) Recovery proceedings: If the proper officer does not cancel the order, the tax assessed in the summary assessment will be recovered as per the provisions of the CGST Act.

In conclusion, Section 64 of the CGST Act allows for summary assessments in special cases where there is a risk to revenue collection. The proper officer must obtain prior written permission from the Additional or Joint Commissioner and serve the order within thirty days. The assessed person has the right to apply for cancellation of the order if they believe it was passed due to a non-fraudulent error, and the proper officer must review the application and make a decision within thirty days.

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Note: The CGST Act 2017 has been notified vide GOI Notification dt. 12/04/2017, which has subsequently been amended through CGST (Extension to J&K) Act 2017, Finance Act 2018, CGST Amendment Act 2018, Finance Act 2019, Finance Act 2020, Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020, Finance Act 2021, Finance Act 2022 including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective CGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.