What does the Section Say?

Section 62 deals with taxpayers who fail to furnish GST returns despite receiving notices from the department. When a registered person does not file the required returns under Section 39, Section 44, or Section 45, the proper officer may assess the tax liability to the best of his judgment using available information.

Before doing so, a notice requiring return filing is issued. If the taxpayer still fails to comply, the officer determines the tax payable based on past records, industry trends, purchases, e-way bills, and other available information. An assessment order is then issued.

However, if the taxpayer files the pending valid return within 30 days from the date of service of the assessment order, the assessment order is deemed withdrawn. The taxpayer must still pay applicable late fees and interest.

This provision ensures that taxpayers cannot indefinitely avoid GST compliance by simply not filing returns. At the same time, it provides an opportunity to regularize defaults and avoid prolonged disputes.

Example

A trader fails to file GSTR-3B for six months. After repeated notices, the officer estimates turnover from available records and issues a best judgment assessment order. The trader subsequently files all pending returns within 30 days, leading to withdrawal of the assessment order.

Key Points

• Applicable to non-filers of returns.
• Officer can estimate tax liability.
• Based on available information.
• Assessment order withdrawn if returns filed within 30 days.
• Interest and late fees remain payable.

One-Line Summary

Section 62 permits best judgment assessment when taxpayers fail to file GST returns.