Section 62 of the CGST Act, 2017, deals with the assessment of non-filers of returns. If a registered taxpayer fails to file their returns despite notices, the GST officer can assess their tax liability based on available information and issue a best judgment assessment order. However, the assessment order is deemed withdrawn if the taxpayer submits the pending returns within 30 days.
Few Important Judgments on this issue:
1. Recovery notices set aside where best judgment assessments denied input tax credit, for reconsideration in light of legislative amendments allowing belated ITC claims. FA'2024 had incorporated amendments allowing for the adjustment of ITC, even for past assessment years where the credit was not claimed in time.
Tvl. SRP Communications - Madras High Court
(2024) 23 CENTAX 187
2. Where assessee could not file GST return as its ITC was blocked and amount was appropriated to show negative balance, since assessee had filed representation for unblocking of ITC, same was to be dealt with expeditiously and assessee was at liberty to file return within 30 days thereafter.
Amit Metaliks Company - Orissa High Court
(2024) 24 CENTAX 329
3. Where assessee could not reply to notices issued under Section 62 and impugned assessment order due to fact that its Managing Director had met with an accident and was hospitalized, impugned assessment order was to be set aside and matter was to be remitted back to authority concerned to pass fresh order after affording assessee an opportunity of being heard.
Tvl. Pearlport Industries India Pvt. Ltd. -Madras High Court
(2024) 88 GSTL 221
4. Intention of department was only to ensure statutory compliance and as long as dealer complied with same and paid necessary late fee charges, delay in filing returns in GSTR-3B although beyond period of 30 days from date of order under section 62(1) was to be deemed to have been condoned.
P. Senthil Kumar - Madras High Court
(2024) 22 CENTAX 428
5. Notice under Form GSTR-3A issued, on 15-1-2019 for filing of GSTR-3B returns for the period from February to December, 2018 under Section 46 of Central Goods and Services Tax Act, 2017 received on 15-1-2019, itself - However, without waiting for statutory period stipulated under the Act, assessment Order issued in Form GSTR ASMT-13 under Section 62 ibid., on 29-1-2019, directing the Petitioner to pay huge sum of money including penalty.
Impugned order being without following the principles of natural justice, matter remanded to the authorities concerned to deal with the same afresh, in accordance with law, after giving an opportunity of hearing to the Petitioner.
S.P.Y. AGRO INDUSTRIES LTD. - Andhra Pradesh High Court
(2021) 44 GSTL 337
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