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CS Executive · Tax Laws and Practice · Concept of Indirect Taxes at a Glance

Under the Central Goods and Services Tax Act, 2017, how is the GST liability of a registered person determined for a tax period, and how does this compare with the position under a direct tax such as income tax?

Under section 59 of the CGST Act, 2017, every registered person self-assesses the tax payable and furnishes a return for each tax period as specified in section 39. The proper officer does not compute it first.

  1. AThe registered person self-assesses the tax payable and furnishes a return for each tax period under section 39, as section 59 providesCorrect
  2. BThe proper officer first computes the tax and then the registered person pays it
  3. CThe tax is determined only by the Appellate Authority after the return is filed
  4. DThe registered person pays whatever amount is collected from customers without any assessment

Explanation

Section 59 of the CGST Act, 2017 states that every registered person shall self-assess the taxes payable and furnish a return for each tax period as specified under section 39. Officer-led assessment is not the primary mechanism. Self-assessment is also how income tax returns work, so the process is similar in that respect, while the incidence differs.

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