At Sterling tax partners, We offer a bouquet of fully integrated tax and regulatory services. Our extensive experience and in-depth knowledge combined with our insight and innovation helps dynamic businesses in GST assessment & litigation.

Our specialist teams provide a holistic and the most tax-effective solutions for closure of GST assessment/litigations to large multinational companies, mid-size businesses, high net worth individuals and entrepreneurs looking to grow their businesses.

While handling GST Assessment, our goal is to minimise your tax exposure by means of legitimate planning and defending the client before tax authorities. We assist client all over India with our local tax team.

 Various Assessment under CGST Act

We at Sterling Tax Partners as part of GST Assessment Services across India, help to successfully closure of assessment proceeding under various section of Income Tax Act, 1961

Provisional Assessment: Section 60 of CGST Act

1. Provisional assessment can be resorted to only in two possible scenarios:

• When registered person is unable to determine the value of supply;
• When registered person is unable to determine the rate of tax.

Apart from the above two scenarios, provisional assessment cannot be applied for any other purpose.

2. Interestingly, the way the provision is worded in law, it appears that an officer is bound to issue an order of provisional assessment if a taxpayer files an application under section 60. As rule 98(3) uses the term ‘officer shall issue’; thus, making it obligatory for the officer to issue provisional assessment order and not any rejection order.
   
   
3. It is pertinent to note that the final assessment order should be passed within six months from the date of communication of provisional assessment order. This duration can be extended by the Joint Commissioner or Additional Commissioner for a further period not exceeding six months and by the Commissioner for such further period not exceeding four years, if sufficient cause is shown and reasons are recorded in writing.
   
   
4. On completion of final assessment, any tax short-paid or not paid only would have to be paid along with interest prescribed under section 50 of the Act i.e., @ 18% computed from the original due date till the date of actual payment.
   
   
5. On completion of final assessment, if the tax paid remains in excess of tax due, then the registered person shall be entitled to a refund along with interest prescribed under section 56 of the Act i.e., @ 9% per annum. The interest would be paid from the 61st day when the application of refund is received till the actual payment is disbursed.
   
   
6. This means that the taxpayer would have to apply for refund under section 54 in case it is discovered on finalization of assessment that excess tax has been paid. Notably, the principle of unjust enrichment would have to be adhered to before the refund is granted. Therefore, in case the said taxpayer has passed on the burden of tax to consumer, he/she would not be entitled to refund and the excess tax would be credited to consumer welfare fund.
   
   
7. An interesting thing to note here is the disparity in interest paid and interest received by a taxpayer on finalization of assessment. Further the duration for which the interest is to be paid and the interest is to be received also gives away the bias against a taxpayer. While the interest to be paid by revenue is prescribed at a lower rate with the time line starting later, the interest to be paid by assessee is at a higher rate with the time line starting carly.
   
   
8. While provisional assessment can be applied for only in two scenarios, a taxpayer can apply for an AAR for other clarifications required. The scope of an AAR is wider than that of a provisional assessment. Further, the taxpayer also does not need to pay any taxes or execute a bond. After payment of a nominal fee, an AAR can be applied for.
   
   
9. A taxpayer can appeal against the provisional order up till Supreme Court. However, an appeal against an AAR’s order can only be preferred before the AAAR.

Section 61. Scrutiny of returns : Heart of GST litigation Services

1. Section 61 is applicable only to a registered person and not to an unregistered person.
   
   
2. Notice can be issued under section 61 only if return has been filed by the registered person.
   
   
3. Once a return has been selected for scrutiny, only then Proper officer would be able to scrutinize return related particulars for correctness of return.
   
   
4. The Proper officer needs to determine the deficiency before issuing GST ASMT-10. The officer cannot ask for further information without ascertaining discrepancy.
   
   
5. The scope of verification under this section is limited to returns. Therefore, if any information is not apparent from the returns, this section cannot be invoked.
   
   
6. The term ‘Correctness of returns’ is a subjective term and can be widely interpreted. Verification of correctness of return includes both legality and propriety of such returns. Therefore, for any return and related particulars furnished by the registered person, proceedings initiated under section 61 can extend to verifying legality and propriety of the return and related particulars furnished in the return regarding Output tax liability and Input tax credit.
   
   
7. No demand can be created under section 61 of the CGST Act, 2017. In case any demand arises than Section 65, 66, 73 or 74 of the CGST Act, 2017 would have to be invoked.
   
   
8. Further, returns are defined under section 2(97) of the CGST Act, 2017 as “Return” means any return prescribed or otherwise required to be furnished by or under this Act or the rules made thereunder. Further, valid returns have been defined under section 2(117) as Valid return means a return furnished under sub-section (1) of section 39 on which self-assessed tax has been paid in full. Broadly returns filed under section 39, 45 and 44 would get covered under the ambit of returns as per the law. Therefore, GSTR 1 and 2A may not be called as returns per se. Nonetheless, the same can be said to be information available for identifying any gaps in GSTR 3B or returns.
   
   
9. As per Circular No. 122/41/2019-GST, dated 05/11/2019, any communication done with the taxpayer for the purpose of scrutiny should be made with the use of DIN.

What we do at Sterling Tax Partner as part of GST Assessment

GST Assessment and Litogation services in Gurgaon requires a comprehensive approach involving people with adequate understanding of tax laws and insightful handling of contentious issues. Our services as part of GST assessment and litigation services in India include:

• Our expert at sterling pursues the notice/intimation issued in depth and analyse the requirement sought by officer for income tax assessment.
  
  
• As part of GST assessment and litigation services, we discuss list of information required with client
  
  
• We push ourselves and client for information/details as required in notice.
  
  

• Tax representation before Tax Authoritie and other tax authorities during audit or investigation by the revenue authorities.
  
  
• Advising the client on proper documentation required for GST Assessment and Litigation services
  
  
• Our sterling partners helping to close the assessment as per law either with nil or minimal demand.
  
  
• Complete review of documents received from client as part of GST assessment and litigation services
  
  
• Attend virtual hearing along with client, if required and assist in providing online clarification for completion of assessment proceeding.
  
  
• Analyse the assessment orders in respect of Company passed by the officer and discussing with Company’s management on course of action required.
  
  
• Diagnostic review of litigation history and assistance in litigation risk analysis