Section 63 of CGST Act, 2017 : Section 63: Assessment Of Unregistered Persons

CGST Act, 2017

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Explanation using Example

Imagine a business owner, Mr. Sharma, who runs a mobile phone shop. He was required to register under GST because his turnover exceeded the threshold limit, but he neglected to do so. In the financial year 2021-2022, his business had a turnover of INR 30 lakhs, well above the registration threshold. However, he did not register for GST and therefore did not file any GST returns or pay any taxes for that period.

The GST authorities discovered this non-compliance during an audit in 2023. Invoking Section 63 of the Central Goods and Services Tax Act, 2017, the proper officer decided to assess Mr. Sharma's tax liability based on the available information. The officer estimated the tax that should have been paid and issued an assessment order accordingly. Before finalizing the assessment, Mr. Sharma was given an opportunity to present his case and be heard, as required by the Act. Mr. Sharma was then required to pay the assessed tax along with any applicable interest or penalties.

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