Section 62 of CGST Act, 2017 – Assessment of non-filers of returns

The Central Goods and Services Tax Act, 2017

Chapter-XII Assessment

Section 62: Assessment of non-filers of returns.

62. (1) Notwithstanding anything to the contrary contained in section 73 or section 74 ¹[or section 74A], 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^c1 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 ²[sixty days] of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn but the liability for payment of interest under sub-section (1) of section 50 or for payment of late fee under section 47 shall continue.

³[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in case he furnishes valid return within such extended period, the said assessment order shall be deemed to have been withdrawn, but the liability to pay interest under sub-section (1) of section 50 or to pay late fee under section 47 shall continue.]

References

Enforcement:

Enforced w.e.f. July 01, 2017 [Notification No. G.S.R. 658(E) dated 28.06.2017].

Amendments:

1. Inserted by Finance (No. 2) Act, 2024, w.e.f. 01.11.2024 [Notification No. 17/2024–Central Tax dated 27.09.2024].

2. Substituted by Finance Act, 2023 w.e.f. 01.10.2023 [vide Notification No. 28/2023–Central Tax dated 31.07.2023], for the words “thirty days”.

3. Inserted by Finance Act, 2023 w.e.f. 01.10.2023 [vide Notification No. 28/2023–Central Tax dated 31.07.2023].

Circulars:

c1. Proper officer relating to provisions other than Registration and Composition, refer Circular No. 3/3/2017-GST dated 05.07.2017.

c2. For Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16, refer Circular No. 69/43/2018-GST dated 26.09.2018.

c3. No separate notice is required to be issued for best judgment assessment under section 62 and in case of failure to file return within 15 days of issuance of FORM GSTR-3A, the best judgment assessment in FORM ASMT-13 can be issued without any further communication.  The Commissioner may resort to provisional attachment to protect revenue under section 83 of the CGST Act before issuance of FORM GST ASMT-13. the proper officer would initiate action under sub-section (2) of section 29 of the CGST Act for cancellation of registration in cases where the return has not been furnished for the period specified in section 29. For guidelines, refer Circular No. 129/48/2019-GST dated 24.12.2019.