Section 62 – Assessment of Non-Filers of GST Returns: Process, Notice, Consequences and Compliance Guide

Failed to File GST Return? Understand Section 62 Before Facing Best Judgment Assessment

Timely GST return filing is one of the most important compliance responsibilities of every registered taxpayer.

However, businesses may sometimes fail to file GST returns due to reasons such as:

• Lack of proper accounting records.
• Internal compliance delays.
• Technical issues.
• Business inactivity.
• Financial difficulties.

When a registered person fails to file the required GST return, the GST department has the authority to determine tax liability through a process known as best judgment assessment under Section 62 of the CGST Act, 2017.

Section 62 allows the proper officer to determine tax liability to the best of his judgment based on relevant material available or gathered when a registered person fails to furnish required returns. 

This means that where returns are not filed, the officer may use available information such as:

• Previous return data.
• Business transaction details.
• E-way bill information.
• Third-party data.
• Other relevant records.

to determine the taxpayer’s liability.

However, Section 62 is not a substitute for regular GST return filing.

It is a mechanism used by the department when taxpayers fail to fulfil their statutory return filing obligations.

Many businesses are unaware about:

• What happens after non-filing of GST returns.
• How GST best judgment assessment works.
• Whether the assessment order can be cancelled.
• What is the time limit for filing pending returns.
• What happens after receiving an ASMT-13 order.

This detailed guide explains:

• Meaning of Section 62 GST.
• When best judgment assessment applies.
• GST ASMT-13 assessment order.
• Process followed by GST officers.
• Consequences of non-filing returns.
• Section 62(2) relief provision.
• Return filing after assessment order.
• Taxpayer rights.
• Practical examples.
• Common mistakes.
• Compliance checklist.

What Is Section 62 of GST Act?

Section 62 of the CGST Act deals with assessment of non-filers of GST returns.

It applies when a registered person fails to furnish a required return under GST law even after receiving a notice requiring such compliance.

In such cases, the proper officer may:

determine tax liability to the best of his judgment based on relevant material available or gathered.

The assessment is made using information available with the department.

The officer may consider:

• Previous returns filed by the taxpayer.
• Details available on the GST portal.
• Sales and purchase information.
• E-way bill records.
• Other relevant sources.

The objective is to determine the taxpayer’s GST liability when required returns have not been furnished.

Why Is Section 62 Important Under GST?

GST follows a self-assessment system where taxpayers calculate their own tax liability and file returns.

However, when a taxpayer does not file returns, the department cannot verify the actual tax position through normal return-based compliance.

Section 62 provides a legal mechanism to address such situations.

The provision helps GST authorities:

• Ensure tax compliance.
• Determine possible tax liability.
• Prevent misuse of GST registration.
• Take action against continuous return defaulters.

When Can GST Department Initiate Assessment Under Section 62?

Section 62 assessment can be initiated when:

• A registered person fails to furnish GST returns.
• A notice has been issued requiring filing of return.
• The taxpayer does not comply within the prescribed period.

The provision mainly applies to taxpayers who do not file mandatory returns despite receiving communication from GST authorities.

GST Notice Before Best Judgment Assessment

Before passing an assessment order, the GST officer generally issues a notice requiring the taxpayer to furnish the pending return.

The purpose of the notice is to provide an opportunity to the taxpayer to comply with return filing requirements.

If the taxpayer still fails to file the return, the officer may proceed with assessment under Section 62.

Best Judgment Assessment Under Section 62 GST

The term "best judgment assessment" means that the GST officer determines tax liability based on available facts and relevant information.

It does not mean that the officer can determine liability without any basis.

The officer must:

• Examine available information.
• Consider relevant material.
• Apply reasonable judgment.
• Determine tax liability accordingly.

The assessment may consider:

• Earlier filed GST returns.
• Business turnover patterns.
• Market information.
• E-way bill details.
• Other available records.

GST ASMT-13 Assessment Order Under Section 62

When the officer completes best judgment assessment, the order is issued in:

FORM GST ASMT-13

The order communicates:

• Tax liability determined.
• Interest payable.
• Penalty, if applicable.
• Basis of assessment.

The taxpayer should carefully review the order and take appropriate action.

Example of Section 62 GST Assessment

ABC Traders is registered under GST but fails to file GSTR-3B returns for several months.

The department issues a notice asking the taxpayer to furnish pending returns.

The taxpayer does not respond.

The GST officer examines available information:

• Previous turnover.
• E-way bill records.
• Business transaction details.

Based on relevant material available, the officer determines tax liability through best judgment assessment.

An order is issued under FORM GST ASMT-13.

Difference Between Normal GST Return Filing and Section 62 Assessment

Section 62(2) Relief After Assessment Order

Section 62(2) provides an opportunity to taxpayers who have received a best judgment assessment order.

The taxpayer should furnish the pending valid return within 30 days from service of the assessment order, as required under Section 62(2). Applicable tax, interest and late fee consequences should also be separately examined.

When the taxpayer complies with the requirement under Section 62(2), the assessment order may be deemed to have been withdrawn according to the applicable provisions.

However, the taxpayer must separately consider applicable:

• Tax liability.
• Interest.
• Late fee consequences.

Detailed Process of Best Judgment Assessment Under Section 62 GST

Section 62 provides a mechanism for GST authorities to determine tax liability when a registered person fails to furnish required returns even after receiving notice under Section 46 of the CGST Act. The proper officer may proceed to determine tax liability to the best of his judgment based on relevant material available or gathered.

The assessment process generally involves the following stages:

Step 1: Non-Filing of GST Return

The process begins when a registered person fails to furnish mandatory GST returns.

Examples include:

• Non-filing of GSTR-3B.
• Non-filing of final return where applicable.
• Failure to furnish required returns under GST provisions.

Return non-filing creates a compliance gap because the taxpayer’s self-assessment information is not available with the department.

Step 2: Notice Under Section 46

Before proceeding with assessment under Section 62, the taxpayer is issued a notice requiring them to furnish the pending return.

The notice provides an opportunity to the taxpayer to complete the pending compliance.

If the taxpayer still fails to file the required return, the GST officer may proceed with best judgment assessment.

Step 3: Collection and Analysis of Relevant Material

While determining tax liability, the GST officer considers relevant information available or gathered.

The officer may examine:

• Previous GST returns.
• GSTR-1 details.
• E-way bill information.
• Purchase and sales data.
• Information available through GST portal.
• Other relevant records.

The assessment should be based on relevant material rather than an arbitrary calculation.

Step 4: Determination of Tax Liability

The proper officer determines tax liability:

"to the best of his judgment based on relevant material available or gathered."

This means the officer uses available information and professional judgment to determine the probable tax liability of the non-filer taxpayer.

The assessment may include:

• Tax payable.
• Applicable interest.
• Applicable late fee.
• Other dues according to GST provisions.

Step 5: Issue of Assessment Order

After completing the assessment, the officer issues the order in:

FORM GST ASMT-13

The order communicates:

• Basis of assessment.
• Tax liability determined.
• Other applicable amounts.

The taxpayer should carefully review the order and take appropriate action.

Sources of Information Used for Section 62 Assessment

Since the taxpayer has not furnished the required return, the department relies on available information.

Common sources include:

1. Previous Return Data

If the taxpayer has filed returns earlier, the department may analyse:

• Previous turnover.
• Tax payment patterns.
• Business activity.

Example:

A taxpayer regularly reported monthly sales of ₹20 lakh but suddenly stops filing returns.

Previous return patterns may help estimate business activity.

2. GSTR-1 Information

Details available from:

• Earlier outward supply returns.
• Invoice data.
• Customer information.

may be considered while determining liability.

3. E-Way Bill Records

For businesses dealing with goods, e-way bill information may indicate:

• Movement of goods.
• Transaction value.
• Supply details.

4. Third-Party Information

The department may also consider information obtained from:

• Other taxpayers.
• Government databases.
• Business records available through investigation.

Consequences of Non-Compliance After Section 62 Assessment Order

Ignoring an ASMT-13 assessment order may create further compliance issues.

Possible consequences include:

• Tax demand becoming recoverable.
• Interest liability.
• Late fee liability.
• Recovery proceedings.

Therefore, taxpayers should take timely action after receiving the assessment order.

Withdrawal of Section 62 Assessment Order Under Section 62(2)

Section 62(2) provides relief to taxpayers who comply after receiving the assessment order.

The taxpayer should furnish the pending valid return within 30 days from service of the assessment order, as required under Section 62(2). Applicable tax, interest and late fee consequences should also be separately examined.

If the requirement under Section 62(2) is fulfilled, the assessment order is deemed to have been withdrawn.

However, withdrawal of the assessment order does not remove:

• Interest liability under Section 50.
• Late fee liability under Section 47.

These consequences continue separately.

Example: Withdrawal of Assessment Order

ABC Traders fails to file GSTR-3B returns for several months.

The department issues notice under Section 46.

The taxpayer does not comply.

The officer passes an assessment order under Section 62.

After receiving the assessment order, the taxpayer files the pending valid return within the prescribed period under Section 62(2).

The assessment order is deemed withdrawn.

However, applicable:

• Interest.
• Late fee.

remain payable according to GST provisions.

What Happens If Return Is Not Filed Within the Required Period?

If the taxpayer fails to furnish the valid return within the time allowed under Section 62(2), the assessment order remains effective.

The taxpayer may then need to explore available legal remedies, including appeal provisions where applicable.

Therefore, businesses should not delay action after receiving an ASMT-13 order.

Difference Between Section 62 Assessment and Section 73/74 Proceedings

Practical Example: Best Judgment Assessment

XYZ Enterprises does not file GST returns for six months.

The GST department sends notice under Section 46, but the taxpayer does not respond.

The officer reviews:

• Previous turnover.
• E-way bill records.
• Past GST payments.
• Available transaction information.

Based on relevant material, the officer determines tax liability under Section 62 and issues ASMT-13 order.

The taxpayer later reviews the order and takes corrective action by filing pending returns and addressing applicable liabilities.

Common Reasons Businesses Face Section 62 Assessment

Businesses may face Section 62 proceedings due to:

• Ignoring GST return deadlines.
• Lack of internal compliance systems.
• Accounting delays.
• Business restructuring.
• Failure to track GST notices.
• Technical issues without timely resolution.

A proper GST compliance system can prevent such situations.

Common Mistakes Businesses Make Under Section 62 GST

Failure to file GST returns can create unnecessary compliance complications. Many businesses face Section 62 proceedings not because of tax evasion, but due to negligence, lack of monitoring, or internal compliance gaps.

Below are some common mistakes businesses should avoid.

1. Ignoring GST Return Filing Notices

One of the biggest mistakes is ignoring notices issued by the GST department.

When a taxpayer fails to furnish required returns even after receiving notice under Section 46, the proper officer may proceed with assessment under Section 62.

Businesses should carefully monitor:

• GST portal communications.
• Registered email notifications.
• Department notices.

Timely response can prevent best judgment assessment proceedings.

2. Not Filing Pending Returns After Assessment Order

Many taxpayers assume that filing returns at any later stage will automatically cancel the assessment order.

However, Section 62(2) specifically provides relief only when the taxpayer furnishes a valid return within the prescribed period after service of the assessment order.

The taxpayer should furnish the pending valid return within 30 days from service of the assessment order, as required under Section 62(2). Applicable tax, interest and late fee consequences should also be separately examined.

Businesses should carefully track the timeline after receiving an ASMT-13 order.

3. Filing Incomplete or Invalid Returns

A return filed after assessment should satisfy the applicable GST requirements.

Businesses should ensure:

• Correct return form is used.
• Required details are properly furnished.
• Applicable tax liability is discharged.
• Required compliance conditions are fulfilled.

An incomplete compliance action may not provide the intended relief.

4. Not Maintaining GST Records

When returns are not filed regularly, businesses often fail to maintain proper records.

Important documents include:

• Sales invoices.
• Purchase invoices.
• Tax payment records.
• Bank statements.
• Stock records.
• Accounting data.

Proper records help explain actual business activity if assessment proceedings arise.

5. Not Reconciling Business Data

Regular reconciliation helps identify compliance issues before they become serious.

Businesses should compare:

• Books of accounts with GST returns.
• Sales records with GSTR-1.
• Tax payments with GSTR-3B.
• Purchase records with available ITC details.

6. Assuming Department Assessment Is Final

A Section 62 assessment order is based on information available with the department because the taxpayer failed to furnish returns.

If the taxpayer believes the assessment does not correctly reflect actual liability, appropriate legal remedies may be available.

Rights of Taxpayer During Section 62 Proceedings

Even during best judgment assessment proceedings, taxpayers have certain rights.

1. Right to Receive Notice

Before assessment under Section 62, the taxpayer should receive notice requiring filing of pending returns.

This gives the taxpayer an opportunity to complete compliance before assessment action.

2. Right to File Valid Return

Section 62(2) provides an opportunity to taxpayers to furnish a valid return within the prescribed period after receiving the assessment order.

If the required conditions are fulfilled, the assessment order is deemed to have been withdrawn. However, interest and late fee liabilities continue separately.

3. Right to Review Assessment Order

The taxpayer can review:

• Tax calculation.
• Basis of assessment.
• Information considered by the officer.

If there are errors, the taxpayer may explore available remedies under GST law.

4. Right to Maintain Records and Provide Clarification

Businesses can maintain and submit supporting documents to establish their actual tax position.

How Businesses Can Avoid Section 62 Assessment ?

A strong GST compliance system can help businesses avoid non-filer assessment proceedings.

1. Follow a GST Return Calendar

Businesses should maintain a compliance calendar for:

• Return due dates.
• Tax payments.
• Reconciliation activities.
• Notice responses.

2. Monitor GST Portal Regularly

Registered persons should regularly check:

• GST portal notices.
• Return filing status.
• Pending liabilities.
• Department communications.

3. Maintain Professional GST Compliance Support

Businesses with multiple transactions should consider regular GST reviews to avoid:

• Return delays.
• Incorrect filings.
• Compliance gaps.

4. Take Immediate Action After Receiving ASMT-13

After receiving a best judgment assessment order, businesses should immediately:

• Review the order.
• Check pending returns.
• Evaluate filing requirements.
• Examine tax, interest, and late fee implications.

Section 62 GST Compliance Checklist

Frequently Asked Questions (FAQs)

1. What is Section 62 of GST Act?

Section 62 of the CGST Act deals with assessment of non-filers of returns.

If a registered person fails to furnish required returns even after receiving notice, the proper officer may determine tax liability to the best of his judgment based on relevant material available or gathered.

2. What is best judgment assessment under GST?

Best judgment assessment means the GST officer determines tax liability based on relevant information available or collected when the taxpayer fails to file required returns.

It is not an arbitrary estimate; it must be based on relevant material and reasonable assessment.

3. What is GST ASMT-13?

GST ASMT-13 is the assessment order issued by the GST officer after completing best judgment assessment proceedings under Section 62.

4. Can Section 62 assessment order be withdrawn?

Yes.

If the registered person furnishes a valid return within the prescribed period after service of the assessment order, the order is deemed to have been withdrawn.

However, interest and late fee liabilities continue.

5. What happens if a taxpayer does not file return after ASMT-13 order?

If the taxpayer does not comply with Section 62(2) requirements, the assessment order remains effective and further recovery consequences may apply.

6. What information can GST officer use for Section 62 assessment?

The officer may use relevant material available or gathered, such as:

• Previous returns.
• Business records.
• E-way bill information.
• Other available data.

7. Does Section 62 apply only to GSTR-3B non-filing?

Section 62 applies where a registered person fails to furnish returns covered under the provision, including returns under Section 39 or Section 45, after notice under Section 46.

8. Is Section 62 the same as GST scrutiny?

No.

GST scrutiny under Section 61 examines filed returns for discrepancies.

Section 62 applies when required returns are not furnished.

9. Can a taxpayer challenge Section 62 assessment?

Yes.

A taxpayer may use available legal remedies under GST law if they disagree with the assessment order.

10. How can businesses avoid Section 62 proceedings?

Businesses should:

• File GST returns on time.
• Maintain records.
• Monitor GST notices.
• Respond quickly to compliance communications.

Need Help With GST Non-Filer Assessment or ASMT-13 Order?

GST return non-compliance can quickly lead to assessment proceedings and unnecessary tax complications.

At FilingSuvidha, our GST experts help businesses manage GST notices, return compliance, tax reconciliation, and assessment-related matters.

Our GST compliance services include:

✔ Section 62 GST Assessment Support
✔ ASMT-13 Order Review
✔ GST Return Filing Assistance
✔ GST Notice Response Support
✔ GST Compliance Review
✔ Tax Reconciliation Services
✔ GST Advisory Services

Received a GST assessment order due to non-filing of returns or facing GST compliance issues? Connect with FilingSuvidha experts today and get professional assistance to resolve your GST matters efficiently.

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