Sections 59-64 CGST — explained: this guide covers what Sections 59-64 CGST — 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.
Section 59 — Self-Assessment
Every registered person self-assesses their tax liability in each return (GSTR-3B). This is the default mode — no officer involvement. You compute output tax, claim ITC, calculate net liability, and pay through the portal. The tax paid through self-assessment is subject to verification through audit (Section 65/66) or scrutiny (Section 61).
Section 60 — Provisional Assessment
When you cannot determine the value of supply or rate of tax due to ambiguity: apply to the proper officer for provisional assessment. Pay tax on a provisional basis (usually at the rate/value you believe is correct, with a bond and bank guarantee for the differential). Final assessment determines actual liability — pay differential or claim refund. Bond released after final assessment. Common use: classification disputes where the correct HSN is unclear.
Section 61 — Scrutiny of Returns
The proper officer can scrutinize GSTR-3B to verify correctness. If discrepancies found: issues notice (ASMT-10) → taxpayer responds (ASMT-11) within 30 days → if response satisfactory: scrutiny dropped. If not: proceed to Section 73/74 demand. Scrutiny is the most common departmental action — triggered by mismatches between GSTR-1 and GSTR-3B, ITC claims exceeding GSTR-2B, or data analytics flags.
Section 62 — Best Judgment Assessment (Non-Filers)
If you do NOT file return within 15 days of notice from the officer: the officer assesses your tax liability to the best of their judgment based on available information (e-way bill data, supplier GSTR-1, bank records, previous returns). This is a punitive assessment — typically higher than actual liability. Can be set aside if you file the return within 30 days of the best judgment order AND pay tax + interest + late fee.
Section 63 — Assessment of Unregistered Persons
If a person who should have been registered has not registered: the officer can assess the tax liability for the entire period the person should have been registered. Full tax + 18% interest + penalty under Section 122. Common scenario: e-commerce sellers who crossed Rs. 20 lakh threshold but never registered.
Section 64 — Summary Assessment
For protecting government revenue when delay would cause revenue loss: officer can pass summary assessment order with prior permission of Additional/Joint Commissioner. This is used in urgent situations (person about to leave India, evidence about to be destroyed). The person can appeal within 30 days.