Section 62 of CGST Act - Assessment of Non-Filers of Returns

Section 62 of the Central Goods and Services Tax Act, 2017 empowers the proper officer to make a best judgment assessment where a registered person fails to furnish a return under Section 39 or the final return under Section 45 even after service of a notice under Section 46.

Current law update: With effect from 1 October 2023, Section 62(2) allows sixty days from service of the assessment order for filing a valid return. A further period of sixty days is available on payment of an additional late fee of Rs. 100 for each day of delay beyond the first sixty days. Section 62(1) now also refers to Section 74A.
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Section 62 - Current Legal Position

Sub-section (1): Notwithstanding anything contrary in Section 73, Section 74 or Section 74A, if a registered person does not furnish a return required under Section 39 or Section 45 even after notice under Section 46, the proper officer may determine the person's tax liability to the best of his judgment. The officer must consider relevant material available or gathered and must issue the assessment order within five years from the date specified under Section 44 for furnishing the annual return for the financial year to which the unpaid tax relates.

Sub-section (2): If the registered person furnishes a valid return within sixty days from service of the assessment order, the assessment order is deemed to be withdrawn. Interest under Section 50(1) and late fee under Section 47 nevertheless continue to be payable.

Proviso to sub-section (2): If the valid return is not furnished within the first sixty days, it may still be furnished within a further sixty days by paying an additional late fee of Rs. 100 for every day of delay beyond the first sixty days. If the valid return is furnished within this extended period, the assessment order is deemed withdrawn, while statutory interest and late fee continue.

The paragraphs above explain the operative provision in plain language. For the official consolidated statutory text and amendment history, use the official links in the sidebar.

When Can Best Judgment Assessment Be Made?

Registered personSection 62 is directed at a person who is registered under GST and has failed to furnish the specified return.
Return defaultThe default must relate to a return under Section 39 or a final return under Section 45.
Notice under Section 46A notice requiring furnishing of the return must first be served. The prescribed notice for a return defaulter is FORM GSTR-3A.
Continued non-filingBest judgment assessment follows when the required return remains unfurnished despite the notice.

Procedure Under Section 62 and Rule 100

  1. The registered person fails to furnish the applicable return under Section 39 or Section 45.
  2. A notice under Section 46 is served requiring the return to be furnished.
  3. If the default continues, the proper officer may assess the liability on a best judgment basis using relevant information available or gathered.
  4. Under Rule 100(1) of the CGST Rules, the assessment order under Section 62(1) is issued in FORM GST ASMT-13. The prescribed procedure also provides for electronic uploading of the summary in FORM GST DRC-07.
  5. The assessment order must comply with the statutory five-year outer time limit stated in Section 62(1).
Material for best judgment: CBIC's SOP for non-filers explains that the proper officer may use information available from returns/statements, e-way bills and other available sources. A best judgment assessment should therefore be based on relevant material and not be an arbitrary estimate.

How the Assessment Order Is Deemed Withdrawn

The most important practical relief under Section 62 is automatic statutory withdrawal of the best judgment order when a valid return is furnished within the permitted period.

Within 60 daysFile a valid return within sixty days from service of the Section 62 assessment order. The order is deemed withdrawn.
Next 60 daysA valid return may be furnished within a further sixty days, subject to an additional late fee of Rs. 100 per day for delay beyond the first sixty days.
Interest and late fee survive: Deemed withdrawal of the assessment order does not extinguish liability for interest under Section 50(1) or late fee under Section 47.

Section 39 - Furnishing of Returns

Section 39 contains the principal return-filing obligations for registered persons. Failure to furnish a return covered by Section 62 can lead to the non-filer assessment mechanism after the statutory notice process.

Section 45 - Final Return

Section 45 requires a registered person whose registration has been cancelled to furnish the prescribed final return, subject to the statutory conditions. Non-filing after notice may attract Section 62.

Section 46 - Notice to Return Defaulters

Section 46 provides for notice to a registered person who fails to furnish a return under the applicable return provisions. This notice is an essential step before a best judgment assessment under Section 62(1).

Sections 73, 74 and 74A

Section 62 begins with a non-obstante clause. The current provision expressly operates notwithstanding anything contrary in Sections 73, 74 or 74A. Section 74A was added to this cross-reference by the Finance (No. 2) Act, 2024.

Section 44 - Annual Return and Time Limit Reference

The five-year limitation in Section 62(1) is calculated by reference to the date specified under Section 44 for furnishing the annual return for the financial year to which the unpaid tax relates.

Key Takeaway

Section 62 is a return-default assessment provision. It permits the proper officer to determine liability on a best judgment basis only after the registered person continues to default after notice under Section 46. The law also gives the taxpayer a statutory route to neutralise the best judgment order by filing a valid return within sixty days, or within the additional sixty-day window subject to the prescribed additional late fee. Interest and ordinary late fee remain payable even when the order is deemed withdrawn.

Last reviewed: 15 September 2026. This article is intended for general legal information. Statutory provisions, notifications and facts of an individual case should be checked before action is taken.