1. Why Section 62 matters
Searches such as “Section 62 CGST Act”, “GST non-filer assessment”, “best judgment assessment GST”, “ASMT-13”, “GSTR-3A notice”, “GST return not filed”, “DRC-07 non-filer” and “30 days withdrawal of GST assessment order” all relate directly to this provision.
Section 62 is different from ordinary GST scrutiny. Section 61 deals with checking a return that has been furnished. Section 62 deals with a registered person who has not furnished the required return even after the statutory non-filing notice.
2. Section 62 in very simple language
Imagine a registered company stops filing its GSTR-3B returns.
The department first follows the non-filer notice process. If the company still does not file the required return, the proper officer can estimate the company's GST liability using information available to the department.
The officer then issues an assessment order.
There is then an important safety mechanism: if the taxpayer furnishes a valid return within 30 days of service of the assessment order, the order is deemed to have been withdrawn, although interest and late fee remain payable.
3. What is best-judgment assessment?
“Best judgment” does not mean the officer can simply invent a tax figure.
The officer must consider all relevant material available or gathered and make the assessment using that material.
| Possible information | Example |
|---|---|
| Previous GST returns | Past turnover and tax pattern. |
| GSTR-1/outward data | Sales invoices reported by the taxpayer. |
| E-way bill information | Goods movement and transaction indicators. |
| Bank/other legally available information | Information gathered during departmental action. |
| Historical trends | Seasonal turnover or previous-period tax payment. |
| Other records | Information available to the proper officer. |
The objective is to determine a reasonable tax liability based on the material available—not to permit a taxpayer to avoid tax merely by not filing.
4. When does Section 62 apply?
The current Section 62 framework applies where a registered person fails to furnish the return under Section 39 or Section 45 even after service of notice under Section 46.
Section 39
Regular GST return framework for registered persons and relevant special categories.
Section 45
Final return after cancellation of registration.
Section 46
Notice to a registered person who fails to furnish a return.
Section 62
Best-judgment assessment after continued non-filing.
CBIC's current Section 62 text expressly refers to returns under Sections 39 and 45 and also recognises Section 74A in the current law. citeturn0search0
5. Section 46 and GSTR-3A
Section 62 should not be read in isolation. Section 46 provides the notice mechanism for a registered person who has failed to furnish a return.
Rule 68 prescribes FORM GSTR-3A for this non-filing notice.
In practical terms:
The Section 46 notice is therefore an important procedural step before the best-judgment assessment under Section 62.
6. Statutory structure
| Provision | Easy meaning |
|---|---|
| 62(1) | If a registered person does not furnish the Section 39/45 return even after Section 46 notice, the officer may assess tax to the best of his judgment using relevant available/gathered material. |
| 62(1) time limit | The assessment order can be issued within five years from the date specified under Section 44 for furnishing the annual return for the relevant financial year. |
| 62(2) | If a valid return is furnished within 30 days of service of the assessment order, the assessment order is deemed to have been withdrawn, subject to continued interest/late-fee consequences. |
Finance Act 2023 changed the earlier 30-day wording for the assessment-order time limit to the present five-year framework and inserted Section 74A into Section 62 in 2024. citeturn0search0turn0search5
7. Material used by the officer
The phrase “best judgment” is important. Section 62 requires the officer to take into account all the relevant material which is available or which he has gathered.
This means the officer may look beyond the missing return itself.
Past taxable turnover and tax payment.
Outward supply information already available.
Goods movement information.
Information available through GST systems.
Historical trends and comparable periods.
Other legally available material gathered during proceedings.
8. Five-year time limit
The current Section 62(1) provides that the assessment order may be issued 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.
This is different from the earlier statutory wording that used a shorter period after the Section 46 notice.
9. ASMT-13 assessment order
Rule 100 provides that an assessment order under Section 62(1) is issued in FORM GST ASMT-13.
The order contains the assessment details and the tax liability determined on best judgment basis.
This is a much more serious document than GSTR-3A. GSTR-3A is the non-filing notice; ASMT-13 is the assessment order.
10. DRC-07 demand summary
Rule 100 also provides for a summary of the Section 62 assessment order to be uploaded electronically in FORM GST DRC-07.
Therefore, a taxpayer should check both:
- the detailed ASMT-13 assessment order; and
- the electronic demand summary in DRC-07.
The liability reflected in the electronic tax liability register can then become relevant for recovery/payment. The payment Rules provide for officer-determined amounts to be debited to the electronic tax liability register. citeturn0search1turn0search2
11. Important 30-day withdrawal rule
This is one of the most important practical protections in Section 62.
If the taxpayer furnishes a valid return within 30 days of the service of the assessment order, the assessment order is deemed to have been withdrawn.
However, withdrawal of the assessment order does not wipe out the liability to pay interest under Section 50 or late fee under Section 47. citeturn0search0turn0search3
12. Additional 60-day opportunity
The current framework also provides an additional opportunity after the first 30-day period.
Where a valid return is not furnished within the first 30 days, the taxpayer can furnish it within a further 60 days, subject to payment of the additional late fee prescribed for that extended period.
This is different from saying that the original assessment automatically disappears for all purposes. The exact statutory conditions must be satisfied.
13. Interest and late fee
Withdrawal of a Section 62 assessment order does not erase the compliance consequences of late filing.
| Amount | Why it can remain payable |
|---|---|
| Tax | The underlying tax liability does not disappear merely because the assessment order is withdrawn. |
| Interest | Section 62(2) expressly preserves interest liability. |
| Late fee | Section 62(2) expressly preserves late-fee liability. |
| Additional late fee | May apply where the extended filing mechanism is used. |
14. When the order becomes final
If the taxpayer does not furnish a valid return within the applicable withdrawal periods, the best-judgment assessment order can remain effective and the demand can proceed through the normal recovery framework.
This is why a non-filer should never assume that “I can file later whenever I want” is a safe strategy.
15. Payment after assessment
After ASMT-13/DRC-07, the taxpayer should immediately reconcile:
- tax assessed;
- tax already paid, if any;
- interest;
- late fee;
- penalty, where applicable;
- credit/cash ledger position; and
- any subsequent valid return filed.
Where a demand is recorded in the electronic tax liability register, the payment process follows the applicable GST payment and recovery provisions. citeturn0search2
16. Which return must be filed?
Section 62 refers to failure to furnish the return under Section 39 or Section 45.
This distinction is important because not every GST form is a “return under Section 39”.
For example, non-filing of GSTR-1 by itself should not automatically be described as a Section 62 best-judgment assessment under Section 39. The statutory trigger in Section 62 is specifically linked to the return under Section 39 or Section 45, after the Section 46 notice.
Always identify the exact return type and statutory provision involved.
17. GSTR-1 vs GSTR-3B non-filing
| Situation | Section 62 relevance |
|---|---|
| GSTR-3B/Section 39 return not filed after Section 46 notice | Direct Section 62 trigger. |
| Final return under Section 45 not filed after Section 46 notice | Section 62 can apply. |
| GSTR-1 not filed | Different compliance consequence; do not automatically call it Section 62 assessment. |
| Annual return GSTR-9 not filed | Non-filing does not by itself become the Section 62 trigger specified in Section 62(1). |
This is an important distinction often missed in simplified GST articles.
18. Cancellation and Section 62
Cancellation of GST registration does not automatically eliminate earlier return liabilities.
Where a registered person has cancellation-related obligations, the final return under Section 45 can become relevant. Section 62 expressly includes Section 45 returns within its non-filer assessment framework.
Therefore, a business should not assume that cancellation means “no more GST returns or liabilities”.
19. Section 61 vs Section 62
| Point | Section 61 | Section 62 |
|---|---|---|
| Taxpayer filed return? | Yes, scrutiny is of a furnished return. | No, relevant return remains unfiled after Section 46 notice. |
| Main action | Scrutiny. | Best-judgment assessment. |
| Key form | ASMT-10. | ASMT-13. |
| Taxpayer response | ASMT-11. | Valid return can trigger withdrawal mechanism. |
| Closure | ASMT-12 where explanation accepted. | Assessment withdrawn if statutory return condition is met. |
20. Section 62 vs Sections 73/74/74A
Section 62 contains a best-judgment mechanism specifically for non-filers. It operates notwithstanding the general tax-determination provisions mentioned in Section 62(1).
The current text expressly refers to Sections 73, 74 and 74A. citeturn0search0turn0search5
This means the officer does not need to treat every non-filer case exactly like an ordinary show-cause determination before being able to make the Section 62 assessment, subject to the statutory safeguards and procedure.
21. Detailed practical examples
Example 1 — Company stops filing GSTR-3B
A registered company stops filing GSTR-3B. A Section 46 notice in GSTR-3A is served. The company still does not file. Section 62 can then be invoked.
Example 2 — ASMT-13 issued
The officer estimates liability using available sales and historical information and issues ASMT-13. DRC-07 records the demand electronically.
Example 3 — Return filed within 30 days
The company files a valid default-period return within 30 days of service of ASMT-13. The assessment order is deemed withdrawn, but interest and late fee remain payable.
Example 4 — Return filed after 30 days
The taxpayer misses the first 30-day window. It may still have the further statutory opportunity subject to the additional late fee and applicable conditions.
Example 5 — No filing at all
The taxpayer does not file within the withdrawal periods. The assessment order can remain effective and recovery can follow.
Example 6 — GSTR-1 filed but GSTR-3B not filed
GSTR-1 shows ₹1 crore sales but the Section 39 return is not filed. The available outward-supply information can assist the officer in best-judgment assessment.
Example 7 — Historical trend
The taxpayer normally reports ₹50 lakh monthly taxable turnover but stops filing. The officer may consider relevant historical information along with other available material.
Example 8 — E-way bill data
E-way bill information indicates substantial movement of goods during a non-filing period. Such relevant information may be considered in determining liability.
Example 9 — Cancelled registration
A cancelled taxpayer fails to furnish the final return under Section 45. Section 62 can become relevant after the statutory non-filing notice.
Example 10 — Demand reconciliation
After ASMT-13, the taxpayer discovers that some tax was actually paid before the assessment. The taxpayer should reconcile the demand and ledger records rather than paying the same liability twice.
22. Construction and infrastructure examples
Project turnover
A contractor with several projects stops filing returns. The department may have information from previous returns, e-way bills and other sources. Project-wise records should therefore be maintained even during periods of financial difficulty.
RA bills
Where RA bills and invoices exist but the return is not filed, the taxpayer should preserve the complete invoice and project records so that the actual liability can be established.
Mobilisation advances
Construction companies should separately track advances because the tax treatment may affect the best-judgment calculation.
Subcontractor ITC
Once a best-judgment assessment is issued, the taxpayer should not assume that all historical ITC can simply be claimed later without satisfying the applicable ITC provisions.
23. Records to maintain
- sales register;
- purchase register;
- GSTR-1 and GSTR-3B records;
- GSTR-2B and ITC reconciliation;
- tax invoices and credit/debit notes;
- e-way bills;
- electronic cash/credit/liability ledgers;
- RCM workings;
- bank statements;
- project-wise records;
- contracts and RA bills;
- advance registers; and
- previous-period GST reconciliations.
24. Internal controls
| Control | Purpose |
|---|---|
| Return calendar | Prevent Section 39 non-filing. |
| GSTR-3A monitoring | Ensure immediate action when a non-filer notice is received. |
| Tax payment reconciliation | Confirm liability is discharged. |
| Notice tracker | Track ASMT-13 and other departmental notices. |
| Demand register | Reconcile DRC-07 demands with ledgers. |
| Cancellation checklist | Ensure final return under Section 45 is not missed. |
| Management escalation | Escalate repeated return defaults immediately. |
25. Legislative development
| Period | Development |
|---|---|
| 2017 | Section 62 introduced best-judgment assessment for registered non-filers. |
| 2017 | Rule 100 established ASMT-13 for Section 62 assessment. |
| 2019 | CBIC Circular 129/48/2019-GST provided a standard operating procedure for assessment of non-filers. |
| 2023 | Finance Act 2023 substituted the Section 62 time-limit framework, moving to five years from the date specified under Section 44 for annual return filing. |
| 2023 | The current 30-day withdrawal mechanism became operative from 1 October 2023. |
| 2024 | Finance (No. 2) Act 2024 inserted Section 74A into Section 62's cross-reference framework. |
| Current | Section 62 remains the non-filer best-judgment assessment mechanism. |
26. Section 62 vs Section 63
| Point | Section 62 | Section 63 |
|---|---|---|
| Person | Registered person. | Person liable to register but not registered, subject to the statutory conditions. |
| Main issue | Failure to furnish Section 39/45 return. | Liability of an unregistered person. |
| Assessment | Best judgment. | Best judgment. |
| Key form | ASMT-13. | ASMT-15. |
| Pre-assessment notice | Section 46/GSTR-3A framework. | ASMT-14 under Rule 100. |
These two provisions should not be mixed up simply because both use the words “best judgment”.
27. Common mistakes
- Ignoring GSTR-3A.
- Assuming the department cannot assess because the taxpayer did not file.
- Confusing ASMT-13 with ASMT-10.
- Ignoring the 30-day withdrawal mechanism after ASMT-13.
- Forgetting that interest and late fee survive withdrawal.
- Waiting for the extended period instead of filing immediately.
- Assuming a later return automatically cancels every earlier demand.
- Failing to reconcile DRC-07 with the electronic liability register.
- Confusing Section 62 with Section 63.
- Using outdated GST articles that still describe the pre-2023 Section 62 time-limit wording.
28. Professional workflow
Prevent non-filing in the first place.
File the required return immediately.
Record the service date and calculate the 30-day deadline.
Compare ASMT-13/DRC-07 with books and ledgers.
Complete the default-period return accurately.
Discharge tax, interest and late fee as applicable.
Track whether the statutory withdrawal condition is satisfied.
Ensure the electronic demand position is correctly updated.
Seek professional review where necessary.
Strengthen return calendar and management controls.
29. Section 62 GST FAQs
What is Section 62 of the CGST Act?
Section 62 provides for assessment of a registered person who fails to furnish the return under Section 39 or Section 45 even after a Section 46 notice.
What is best judgment assessment under GST?
It is an assessment made by the proper officer using the relevant information available or gathered when the taxpayer has failed to furnish the required return.
What is GSTR-3A?
GSTR-3A is the notice issued to a registered person who has failed to furnish a return, under Section 46 and Rule 68.
What is ASMT-13?
ASMT-13 is the best-judgment assessment order issued under Rule 100 for Section 62(1).
What is DRC-07?
DRC-07 is the electronic summary of a demand/order uploaded on the GST portal under the prescribed Rules.
Can Section 62 apply to GSTR-1 non-filing?
Section 62 specifically refers to returns under Section 39 or Section 45. Therefore, GSTR-1 non-filing should not automatically be described as a Section 62 assessment.
How long does the department have to issue a Section 62 order?
The current Section 62(1) provides a period of five years from the date specified under Section 44 for furnishing the annual return for the relevant financial year.
What happens if I file my return within 30 days after ASMT-13?
The assessment order is deemed to be withdrawn, but interest and late fee remain payable.
What if I miss the first 30 days?
The current framework provides a further 60-day opportunity subject to the additional late fee and statutory conditions. Filing as early as possible is strongly preferable.
Does withdrawal mean no tax is payable?
No. Withdrawal of the best-judgment assessment does not erase the underlying return/tax liability, interest or late fee.
Can the officer use e-way bill data?
Relevant departmental data, including e-way bill information, may be used as part of the material considered in assessment/scrutiny where legally available.
What is the difference between Section 61 and Section 62?
Section 61 deals with scrutiny of a furnished return. Section 62 deals with best-judgment assessment of specified non-filers after the Section 46 process.
What is the difference between Section 62 and Section 63?
Section 62 concerns registered non-filers. Section 63 concerns persons liable to registration who have not registered, subject to its statutory conditions.
31. Key takeaways
- Section 62 deals with assessment of specified non-filers.
- The person must be registered and must have failed to furnish the relevant Section 39 or Section 45 return after Section 46 notice.
- The officer can assess tax to the best of judgment using relevant available or gathered material.
- ASMT-13 is the assessment order.
- DRC-07 provides the electronic demand summary.
- The current Section 62(1) time limit is five years linked to the Section 44 annual-return date.
- A valid return filed within 30 days of service of ASMT-13 causes the assessment order to be deemed withdrawn.
- Interest and late fee remain payable even when the assessment order is withdrawn.
- A further 60-day filing opportunity exists under the current framework subject to additional late fee and statutory conditions.
- Section 62 is very different from Section 61 scrutiny and Section 63 assessment of specified unregistered persons.
Reference policy: This article intentionally does not embed external reference hyperlinks. Legal authorities are identified by Act section, Rule, notification/circular and Government material.
Disclaimer: This guide is written in simple language for practical educational use. Actual assessment and withdrawal consequences depend on the tax period, exact return default, service date, applicable Rules and the assessment order.