What does the Section say?

Section 59 establishes the concept of self-assessment under GST. Every registered person is responsible for assessing his own tax liability and filing returns accordingly.

GST operates on trust-based compliance where taxpayers determine tax payable, claim eligible ITC, maintain records, and file returns without prior assessment by authorities.

Tax authorities may later verify returns through scrutiny, audit, inspection, or assessment proceedings.

Incorrect self-assessment may lead to demand notices, recovery, interest, and penalties.

Example

A trader calculates GST on sales, claims eligible ITC, determines net tax liability, and files GST returns based on his own assessment.

Key Points

• Taxpayer calculates own liability.
• Foundation of GST compliance.
• Requires proper record maintenance.
• Subject to departmental verification.
• Errors may result in future demands.

In One Line

GST primarily functions on the principle of taxpayer self-assessment.