Rule 98 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 98 of the Central Goods and Services Tax Rules, 2017 sets out the steps of provisional assessment under section 60: the application in FORM GST ASMT-01, the proper officer's notice and the reply, the order allowing payment of tax on a provisional basis, the bond and the security, the final assessment order, and the release of the security.
This article follows the CGST Rules, 2017 as amended up to 31 October 2025 in the compilation consulted; notifications issued after that date should be checked.
A registered person requests payment of tax on a provisional basis by an application in FORM GST ASMT-01 with supporting documents. The proper officer may seek more in FORM GST ASMT-02; the reply is in FORM GST ASMT-03. The order allowing provisional payment is in FORM GST ASMT-04 and fixes the bond amount, with security not exceeding twenty-five per cent. of the amount covered under the bond. The bond is in FORM GST ASMT-05. The final order is in FORM GST ASMT-07, and release of the security is sought in FORM GST ASMT-08 and ordered in FORM GST ASMT-09 within seven working days.
The section behind the rule
Rule 98 carries out section 60 of the CGST Act, 2017: see section 60: provisional assessment, bond and finalisation. The rule refers to sub-section (1) (the request), sub-section (2) (the bond) and sub-section (3) (finalisation). The section is not repeated here. If you are considering a request for provisional payment, our GST notices and litigation service can prepare the request and the papers. The rule that follows in the same Chapter is rule 99, rule 100 and rule 102.
Rule 98(1): the application
Every registered person requesting payment of tax on a provisional basis in accordance with section 60(1) "shall furnish an application along with the documents in support of his request, electronically in FORM GST ASMT-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner."
Rule 98(2): notice and reply
The proper officer may, on receipt of the application, issue a notice in FORM GST ASMT-02 requiring the registered person to furnish additional information or documents in support of the request. The applicant files a reply to the notice in FORM GST ASMT-03, and may appear in person before the officer if he so desires.
Rule 98(3): the order allowing provisional payment
The proper officer issues an order in FORM GST ASMT-04 "allowing the payment of tax on a provisional basis indicating the value or the rate or both on the basis of which the assessment is to be allowed on a provisional basis and the amount for which the bond is to be executed and security to be furnished not exceeding twenty-five per cent. of the amount covered under the bond."
The words give the order three contents: the value or the rate or both, the amount of the bond, and the security, which must not exceed twenty-five per cent. of the amount covered under the bond.
Rule 98(4): bond and security
The registered person executes a bond under section 60(2) in FORM GST ASMT-05, along with a security in the form of a bank guarantee for an amount as determined under sub-rule (3).
- Proviso: a bond furnished to the proper officer under the State Goods and Services Tax Act or the Integrated Goods and Services Tax Act is deemed to be a bond furnished under the Act and the Rules.
- Explanation: for the purposes of this rule, "amount" includes the amount of integrated tax, central tax, State tax or Union territory tax and cess payable in respect of the transaction.
Rule 98(5): notice for finalisation and the final order
The proper officer issues a notice in FORM GST ASMT-06, "calling for information and records required for finalization of assessment under sub-section (3) of section 60", and issues a final assessment order, specifying the amount payable by the registered person or the amount refundable, if any, in FORM GST ASMT-07.
Rule 98(6) and (7): release of the security
- (6) The applicant may file an application in FORM GST ASMT-08 for the release of the security furnished under sub-rule (4) after the order under sub-rule (5) is issued.
- (7) The proper officer releases the security, after ensuring that the applicant has paid the amount specified in sub-rule (5), and issues an order in FORM GST ASMT-09 "within a period of seven working days from the date of the receipt of the application under sub-rule (6)".
A refund arising from the final order is dealt with in the refund Chapter: see rule 89, which names the order of finalisation of provisional assessment among its documents.
The forms in order
| Step | Sub-rule | Form | By whom |
|---|---|---|---|
| Application with documents | (1) | FORM GST ASMT-01 | Registered person |
| Notice for additional information | (2) | FORM GST ASMT-02 | Proper officer |
| Reply | (2) | FORM GST ASMT-03 | Applicant |
| Order allowing provisional payment | (3) | FORM GST ASMT-04 | Proper officer |
| Bond, with bank guarantee | (4) | FORM GST ASMT-05 | Registered person |
| Notice for information and records | (5) | FORM GST ASMT-06 | Proper officer |
| Final assessment order | (5) | FORM GST ASMT-07 | Proper officer |
| Application for release of security | (6) | FORM GST ASMT-08 | Applicant |
| Order releasing security | (7) | FORM GST ASMT-09 | Proper officer |
Who does what, by when
| Who | What | When |
|---|---|---|
| Registered person | Applies in FORM GST ASMT-01 | Rule prints no period |
| Proper officer | May issue a notice in FORM GST ASMT-02 | On receipt of the application; no period printed |
| Applicant | Replies in FORM GST ASMT-03 | Rule prints no period |
| Proper officer | Order in FORM GST ASMT-04 | Rule prints no period |
| Registered person | Executes bond in FORM GST ASMT-05 with bank guarantee | After the order; no period printed |
| Proper officer | Final order in FORM GST ASMT-07 | After notice in FORM GST ASMT-06 |
| Applicant | Applies for release in FORM GST ASMT-08 | After issue of the order under sub-rule (5) |
| Proper officer | Order in FORM GST ASMT-09 | Within seven working days from receipt of the application |
A worked example
Granite Steel, an invented registered person, requests payment of tax on a provisional basis and applies in FORM GST ASMT-01 with documents. The proper officer sends a notice in FORM GST ASMT-02 asking for the contract; Granite replies in FORM GST ASMT-03. The officer issues an order in FORM GST ASMT-04 allowing provisional payment at a stated value and rate, and fixes a bond amount of one crore rupees (assumed). The security cannot exceed twenty-five per cent. of that amount, so it cannot exceed twenty-five lakh rupees. Granite executes the bond in FORM GST ASMT-05 and furnishes a bank guarantee of that order of amount.
Later the officer issues a notice in FORM GST ASMT-06, receives the records and passes the final order in FORM GST ASMT-07 showing the amount payable. Granite pays it and applies in FORM GST ASMT-08 for release of the security. The officer releases it by an order in FORM GST ASMT-09 within seven working days of receiving the application.
Points to watch
- Twenty-five per cent. is a ceiling on the security, not on the bond.
- Bonds under other Acts. A bond under the State Goods and Services Tax Act or the Integrated Goods and Services Tax Act is deemed a bond under this Act.
- "Amount" is wide. It includes integrated tax, central tax, State tax, Union territory tax and cess.
- Release follows payment. The officer releases the security only after ensuring that the amount in the final order has been paid.
- Only one fixed period appears in the rule: seven working days for the release order.
Need help with a provisional assessment?
The bond, the bank guarantee and the final order each have their own form, and the security is released only after payment. We prepare the request, track the orders and see the process through to release. See our GST notices and litigation service.
Key takeaways
- Application in FORM GST ASMT-01; notice FORM GST ASMT-02; reply FORM GST ASMT-03.
- Order in FORM GST ASMT-04 fixes the bond amount; security does not exceed twenty-five per cent. of the amount covered under the bond.
- Bond in FORM GST ASMT-05; notice FORM GST ASMT-06; final order FORM GST ASMT-07.
- Release: application FORM GST ASMT-08, order FORM GST ASMT-09 within seven working days.
- "Amount" includes integrated tax, central tax, State tax or Union territory tax and cess.
Read next
- Rules 99, 100 and 102 of the CGST Rules, 2017: scrutiny of returns, assessment in certain cases and special audit
- Rule 97 of the CGST Rules, 2017: the Consumer Welfare Fund
- Section 60: provisional assessment, bond and finalisation
- Rule 101: conduct of GST audit
Disclaimer: Based on the Central Goods and Services Tax Rules, 2017 and the GST Acts as amended up to 31 October 2025 in the compilation consulted, read with the Finance Act, 2026 where this article says so, as consulted on 2 October 2026. Notifications, circulars and amendments issued after that date, the forms on the common portal and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.