CGST ACT | Section 62 |
Notification No. | 06/2023 CT dated 31.03.2023 |
An amnesty scheme has been introduced where best judgement assessment order passed on or before 28.02.2023 under section 62 of the CGST Act can be set aside if valid return is furnished on or before 30.06.2023 subject to compliance with certain other terms of the notification.
To know more, read in detail about Notification No. 06/2023-CT dated 31.03.2023 below:
Existing Law
1. As per section 62(1) of the CGST Act, 2017, if a notice has been served under section 46 for not furnishing returns under section 39 or 45, as the case may be, then the Proper Officer has the power to issue best judgement assessment order wherein he assess the tax liability as per his judgement.
2. As per section 62(2), where a valid return has been furnished within a period of thirty days from the date of service of assessment order, then such order shall be deemed to be withdrawn.
Amendment
3. An amnesty scheme has been notified vide Notification No. 06/2023 – CT dated 31.03.2023 providing for deemed withdrawal of assessment orders issued under section 62.
4. As per said amnesty scheme, where:
4.1 The assessment order is issued under section 62 on or before 28.02.2023
4.2 assessee failed to furnish valid return within a period of 30 days from the date of service of assessment order
4.3 but said return is furnished on or before 30.06.2023
4.4 Interest under section 50(1) and late fee under section 47 is paid, the assessment order shall be deemed to be withdrawn.
Effect of Amendment
5. This amendment would provide much needed relief to those assesses whose:
5.1 Right to file appeal against said amendment order became barred by time i.e., where appeal was not filed with normal period of limitation of three months and extended period of limitation of one month; or
5.2 Where appeal was filed but was decided against the assessee.
6. In such situations, the assessee were being exposed to higher tax liability. One, on account of assessment order and another, for late filing of return with consequential impact on eligibility of recipient’s ITC.
Our Remarks
7. Time to time, various amnesty schemes have been notified by the Government to bring all assesses within the ambit of GST Law and to inculcate complaint behaviour in them.
8. The amnesty scheme being notified by the Government helps assessee to save litigation cost as well as financial burden.
9. In cases where appeals are pending, same could either be withdrawn or may be decided pursuant to furnishing proof of filing of return in terms of Notification No. 06/2023 – CT dated 31.03.2023.