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CMA Intermediate · Direct and Indirect Taxation · Returns and Payment of Taxes

A registered person fails to file the return under section 39 even after receiving a notice under section 46. Under section 62 of the CGST Act, 2017, what may the proper officer do?

The proper officer may assess the defaulter's tax liability to the best of his judgment, taking into account all relevant material available or gathered by him. This applies where the registered person has not filed the return even after a section 46 notice.

  1. AAssess the tax liability to the best of his judgment using all relevant material available or gathered by himCorrect
  2. BCancel the registration immediately without any assessment
  3. CWait for the person to file a return and take no action
  4. DAssess liability only on the basis of the person's own books produced voluntarily

Explanation

Section 62(1) lets the proper officer assess the tax liability to the best of his judgment, taking into account all relevant material available or gathered, once the registered person fails to file the return even after a section 46 notice. Limiting the assessment to books produced voluntarily is wrong because the officer may use any relevant material he has gathered.

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