Ans. Every person registered under the Act shall himself
assess the tax payable by him for a tax period and after
such assessment he shall file the return required under
Ans. Yes, Explanation to Section 44 of MGL has such a
provision. It provides that where goods received as an
inward supply is returned by the recipient to the supplier
within six months from the date of the relevant invoice,
the tax payable on such supplies shall be equal to the
input tax credit availed earlier on such inward supply.
This provision essentially ensures that if the recipient
returns the goods to the supplier within six months of
the date of its original supply, his tax liability on such
returned goods will be the same as was at the time of the
original supply. If goods are returned after six months of
the date of the original supply invoice, the rate of tax
applicable will be the rate prevailing on date of such return.
Ans. As a taxpayer has to pay tax on self-assessment basis,
a request for paying tax on provisional basis has to come
from the taxpayer which will then have to be permitted
by the proper officer. In other words, no tax officer can
suomoto order payment of tax on provisional basis. This
is governed by section 44A of MGL. Tax can be paid on a
provisional basis only after the proper officer has permitted
it through an order passed by him. For this purpose, the
taxable person has to make a written request to the proper
officer, giving reasons for payment of tax on a provisional
basis. Such a request can be made by the taxable person
only in such cases where he is unable to determine:
a) the value of goods or services to be supplied by him, or
b) determine the tax rate applicable to the goods or services to be supplied by him.
In such cases the taxable person has to execute a bond in the prescribed form, and with such surety or security as the proper officer may deem fit.
Ans. The final assessment order has to be passed by the
proper officer within six months from the date of the
communication of the order of provisional assessment.
However, on sufficient cause being shown and for reasons
to be recorded in writing, the above period of six months
may be extended:
a) by the Joint/Additional Commissioner for a
further period not exceeding six months, and
b) by the Commissioner for such further period as
he may deem fit.
Ans. Yes. He will be liable to pay interest from the date
the tax was due to be paid originally till the date of actual
Ans. If the taxable person does not provide a satisfactory
explanation within 30 days of being informed (extendable
by the officer concerned) or does not take corrective
action within a reasonable period after accepting the
discrepancies, the Proper Officer may take recourse to any
of the following provisions:
(a) Proceed to conduct audit under Section 49 of the Act;
(b) Direct the conduct of a special audit under Section 50 which is to be conducted by a Chartered Accountant or a Cost Accountant nominated for this purpose by the Commissioner; or
(c) Undertake procedures of inspection, search and seizure under Section 60 of the Act; or
(d) Initiate proceeding for determination of tax under Section 51 of the Act.
Ans. As this provision relates to ‘best judgment assessment’,
giving a notice to the taxable person is not required.
Ans. The proper officer has to first issue a notice to the
defaulting taxable person under section 32 of MGL requiring
him to furnish the return within a specified period of time,
which has to be a minimum of fifteen days as per section
46 of MGL. If the taxable person fails to file return within
the given time, the proper officer shall proceed to assess
the tax liability of the return defaulter to the best of his
judgement taking into account all the relevant material
available with him. This power is given under section 46 of MGL.
Ans. The best judgment order passed by the Proper
Officer under section 46 of MGL shall automatically stand
withdrawn if the taxable person furnishes a valid return
for the default period (i.e. files the return and pays the tax
as assessed by him), within thirty days of the receipt of the
best judgment assessment order.
Ans. The time limit for passing an assessment order under
section 46 or 47 is three or five years from the due date for
filing the annual return.
Ans. Section 47 of MGL provides that in such a case, the
proper officer can assess the tax liability and pass an order
to his best judgment for the relevant tax periods. However,
such an order must be passed within a period of five years
from the due date of filing of the annual return for the
financial year to which non-payment of tax relates.
Ans. As per section 48 of MGL, Summary Assessments can
be initiated to protect the interest of revenue when:
a) the proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act, and
b) the proper officer believes that delay in passing an assessment order will adversely affect the interest of revenue. Such order can be passed after seeking permission from the Additional Commissioner / Joint Commissioner
Ans. A taxable person against whom a summary
assessment order has been passed can apply for its
withdrawal to the jurisdictional Additional/Joint
Commissioner within thirty days of the date of receipt
of the order. If the said officer finds the order erroneous,
he can withdraw it and direct the proper officer to carry
out determination of tax liability in terms of section 51
of MGL. The Additional/Joint Commissioner can follow a
similar course of action on his own motion if the finds the
summary assessment order to be erroneous (section 48 of
Ans. No. In certain cases like when goods are under
transportation or are stored in a warehouse, and the
taxable person in respect of such goods cannot be
ascertained, the person in charge of such goods shall be
deemed to be the taxable person and will be assessed to
tax (section 48 of MGL).
Ans. As per section 49 of MGL, any officer of CGST or SGST
authorized by his Commissioner by a general or specific
order may conduct audit of a taxpayer. The frequency and
manner of audit will be prescribed in due course.
Ans. Yes, prior intimation is required and the taxable
person should be informed at least 15 days prior to conduct
Ans. The audit is required to be completed within 3
months from the date of commencement of audit or within
a further period of a maximum of 6 months subject to the
approval of the Commissioner.
Ans. The term ‘commencement of audit’ is important
because audit has to be completed within a given time
frame in reference to this date of commencement.
Commencement of audit means the later of the following:
a) the date on which the records/accounts called for by the audit authorities are made available to them, or
b) the actual institution of audit at the place of business of the taxpayer.
Ans. The taxable person is required to:
a) facilitate the verification of accounts/records available or requisitioned by the authorities,
b) provide such information as the authorities may require for the conduct of the audit, and
c) render assistance for timely completion of the audit.
Ans. The proper officer must without delay inform the
taxable person about his findings, reasons for findings and
the taxable person’s rights and obligations in respect of
Ans. A special audit can be instituted in limited
circumstances where during scrutiny, investigation, etc. it
comes to the notice that a case is complex or the revenue
stake is high. This power is given in section 50 of MGL.
Ans. The Assistant / Deputy Commissioner is to serve the notice for special audit only after prior approval of the Commissioner.
Ans. A Chartered Accountant or a Cost Accountant so nominated by the Commissioner may undertake the audit.
Ans. The auditor will have to submit the report within 90 days or within the further extended period of 90 days.
Ans. The expenses for examination and audit including the
remuneration payable to the auditor will be determined
and borne by the Commissioner.
Ans. Based on the findings / observations of the special audit, action can be initiated under Section 51 of the MGL.