Section 60 of CGST Act - Provisional Assessment
Section 60 of the Central Goods and Services Tax Act, 2017 permits a taxable person to request provisional payment of tax when the person is unable to determine the value of a supply or the applicable rate of tax. The provision lays down the order, bond, final assessment, interest and refund framework.
Updated: 15 September 2026
Meaning and scope of provisional assessment
GST is generally paid on self-assessment. Section 60 creates a specific mechanism for cases where the taxable person cannot determine either the value of goods or services or both, or the rate of tax applicable to the supply. The taxpayer must make a reasoned request to the proper officer; the provision does not describe provisional assessment as a general substitute for self-assessment.
The proper officer is required to pass an order within the statutory period specified in Section 60(1). Payment on a provisional basis is subject to execution of the prescribed bond and such surety or security as may be required in accordance with the Act and Rule 98.
Section 60 - Provisional assessment
(1) Subject to the provisions of sub-section (2), where the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, he may request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper officer shall pass an order, within a period not later than ninety days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him.
(2) The payment of tax on provisional basis may be allowed, if the taxable person executes a bond in such form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the taxable person for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed.
(3) The proper officer shall, within a period not exceeding six months from the date of the communication of the order issued under sub-section (1), pass the final assessment order after taking into account such information as may be required for finalizing the assessment.
Proviso to sub-section (3): On sufficient cause being shown and for reasons to be recorded in writing, the period may be extended by the Joint Commissioner or Additional Commissioner for a further period not exceeding six months and by the Commissioner for such further period not exceeding four years.
(4) The registered person is liable to pay interest on tax payable on the supply under provisional assessment but not paid by the due date specified under Section 39(7) or the rules made thereunder, at the rate specified under Section 50(1), from the first day after the due date until actual payment, whether payment is made before or after the final assessment order.
(5) Where the registered person becomes entitled to a refund consequent to the final assessment order under sub-section (3), the refund is subject to Section 54(8), and interest is payable as provided in Section 56.
Procedure under Rule 98 of the CGST Rules
Rule 98 prescribes the operational procedure for provisional assessment. The principal forms and stages are:
| Stage | Form | Purpose |
|---|---|---|
| Application | GST ASMT-01 | Application by the registered person for provisional assessment, supported by relevant documents. |
| Additional information | GST ASMT-02 | Notice by the proper officer seeking additional information or documents. |
| Reply | GST ASMT-03 | Reply by the applicant to the notice. |
| Provisional order | GST ASMT-04 | Order allowing provisional payment and specifying value or rate or both, bond amount and security. |
| Bond | GST ASMT-05 | Bond executed for the amount covered by provisional assessment. |
| Finalization notice | GST ASMT-06 | Notice calling for information and records required for finalization. |
| Final assessment | GST ASMT-07 | Final assessment order specifying the amount payable or refundable. |
| Release request | GST ASMT-08 | Application for release of security after final assessment. |
| Release order | GST ASMT-09 | Order releasing security after satisfaction of the prescribed conditions. |
Under Rule 98, security may be required in the form of a bank guarantee and is capped at twenty-five per cent of the amount covered under the bond. The rule also provides for release of security after finalization and payment of the amount specified in the final assessment order.
Important time limits under Section 60 and Rule 98
| Action | Time limit |
|---|---|
| Order on request for provisional assessment under Section 60(1) | Not later than 90 days from receipt of the request. |
| Final assessment under Section 60(3) | Within 6 months from communication of the provisional assessment order. |
| Extension by Joint Commissioner or Additional Commissioner | Further period not exceeding 6 months, on sufficient cause and reasons recorded in writing. |
| Further extension by Commissioner | Such further period not exceeding 4 years, subject to the statutory conditions. |
| Release of security under Rule 98 | Order in GST ASMT-09 within 7 working days from receipt of GST ASMT-08, after ensuring payment of the amount specified in the final order. |
Interest and refund after final assessment
Interest where additional tax becomes payable
Section 60(4) links interest to the due date for payment of tax under Section 39(7) and the rate under Section 50(1). Accordingly, finalization of provisional assessment does not postpone the statutory interest starting point where tax was not paid by the applicable due date.
Refund where excess tax was paid provisionally
If final assessment results in a refund, Section 60(5) applies subject to Section 54(8). Interest on the refund is governed by Section 56. The refund consequences should therefore be read together with the refund provisions of the CGST Act and the applicable rules.
Practical points for taxpayers
- State clearly whether the uncertainty relates to valuation, rate of tax, or both.
- File the prescribed application with documents that explain the uncertainty and support the proposed provisional basis.
- Track notices and replies in the prescribed ASMT forms and preserve the complete electronic record.
- Review the bond and security requirement in the provisional order before execution.
- Keep records needed for finalization ready because the proper officer may call for further information in GST ASMT-06.
- After GST ASMT-07, promptly discharge any amount payable or, where applicable, proceed with the refund and security-release process.
Related CGST Act provisions
Section 59 - Self-assessment | Section 61 - Scrutiny of returns | Section 54 - Refund of tax | Section 56 - Interest on delayed refunds