Section 64 of CGST Act - Summary Assessment in Certain Special Cases
Section 64 of the Central Goods and Services Tax Act, 2017 empowers the proper officer to make an immediate summary assessment where evidence indicates a tax liability and delay may adversely affect the interest of revenue. The power is exceptional and requires previous permission of an Additional Commissioner or Joint Commissioner.
What is Summary Assessment under GST?
Under Section 2(11) of the CGST Act, "assessment" means determination of tax liability under the Act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment. A summary assessment under Section 64 is therefore a statutory method for determining tax liability quickly in a special situation where waiting may prejudice revenue.
Unlike routine self-assessment, scrutiny or ordinary demand proceedings, Section 64 is intended for urgent revenue-protection situations. The officer must have evidence showing a tax liability, must obtain the prescribed prior approval, and must have sufficient grounds to believe that delay may adversely affect the interest of revenue.
Section 64 of the CGST Act - Provision Explained
Section 64(1): Power to make summary assessment
The proper officer may act on evidence showing a person's tax liability that comes to the officer's notice. Before proceeding, the officer must obtain previous permission from the Additional Commissioner or Joint Commissioner. The assessment may be made to protect revenue only where there are sufficient grounds to believe that delay could adversely affect the interest of revenue.
If the taxable person cannot be ascertained and the liability concerns a supply of goods, the person in charge of those goods is deemed to be the taxable person for the purpose of the assessment and becomes liable for the tax and other amount due under Section 64.
Section 64(2): Withdrawal where the order is erroneous
The taxable person may apply within 30 days from receipt of the summary assessment order. The Additional Commissioner or Joint Commissioner may also act on his own motion. If the summary assessment order is considered erroneous, it may be withdrawn and the matter may proceed under Section 73, Section 74 or Section 74A, as applicable.
Essential Conditions for Invoking Section 64
- There must be evidence showing a tax liability of a person.
- The evidence must come to the notice of the proper officer.
- Previous permission of the Additional Commissioner or Joint Commissioner is required.
- The purpose must be protection of the interest of revenue.
- The officer must have sufficient grounds to believe that delay may adversely affect revenue.
- If the taxable person is not ascertainable in a case concerning supply of goods, the statutory deeming rule concerning the person in charge of the goods may apply.
Rule 100 of the CGST Rules and Forms
Rule 100 of the Central Goods and Services Tax Rules, 2017 prescribes the procedure and forms for assessment in certain cases. For Section 64, the relevant forms are:
| Form | Purpose |
|---|---|
| FORM GST ASMT-16 | Summary assessment order under Section 64(1). |
| FORM GST ASMT-17 | Application for withdrawal of the summary assessment order under Section 64(2). |
| FORM GST ASMT-18 | Order accepting or rejecting the application for withdrawal. |
FORM GST ASMT-16 records the basis and findings of the summary assessment and the amount assessed as payable. Rule 100(3) requires the summary assessment order under Section 64(1) to be issued in this form.
How Can a Summary Assessment Order Be Withdrawn?
A taxable person who considers the order erroneous should move the application under Section 64(2) within 30 days from the date of receipt of the order, using FORM GST ASMT-17 as prescribed by Rule 100. The Additional Commissioner or Joint Commissioner may also examine the matter on his own motion.
If the competent officer concludes that the order is erroneous, it may be withdrawn. The subsequent determination is then undertaken under the applicable demand provision: Sections 73 or 74 for periods up to Financial Year 2023-24, or Section 74A for Financial Year 2024-25 onwards. The acceptance or rejection of the withdrawal application is issued in FORM GST ASMT-18.
Section 73, Section 74 and Section 74A - Why the Reference Matters
| Provision | Broad application after the 2024 amendment |
|---|---|
| Section 73 | Determination for periods up to FY 2023-24 where fraud, wilful misstatement or suppression to evade tax is not invoked. |
| Section 74 | Determination for periods up to FY 2023-24 involving fraud, wilful misstatement or suppression of facts to evade tax. |
| Section 74A | Common demand provision for tax periods pertaining to FY 2024-25 onwards, with penalty consequences depending on the circumstances specified in that section. |
Practical Points for Taxpayers
- Check the date on which the Section 64 order was received because the statutory period for an application under Section 64(2) is 30 days from receipt.
- Verify whether the order identifies evidence showing tax liability and explains why delay would adversely affect revenue.
- Check whether previous permission of the Additional Commissioner or Joint Commissioner was obtained.
- Reconcile the tax period, turnover, rate, place of supply, tax, interest and other amounts stated in FORM GST ASMT-16 with the underlying records.
- If seeking withdrawal, clearly identify the factual or legal error and support the application with relevant records.
Official Resources
For the authoritative statutory text and procedural rules, refer to the official India Code and the CBIC GST portal. Taxpayers may also use the GST common portal for applicable online compliance services.
Disclaimer: This article is for general legal and tax information. Statutory provisions, notifications, rules and procedures should be checked for the relevant tax period and facts before action is taken.