ASMT-14 Notice

Understanding Section 62 of the CGST Act, 2017

Extract of Section 62 of the CGST Act, 2017

Section 62 of the Central Goods and Services Tax (CGST) Act, 2017 pertains to the best-judgment assessment of return non-filers. This process involves the proper officer assessing the tax liability of a taxpayer who fails to file returns. The assessment is based on available information and records, and the officer uses their best judgment to determine the tax liability.

Section 62: Assessment of Non-Filers of Returns

(1) Notwithstanding anything to the contrary contained in section 73 or section 74, where a registered person fails to furnish the return under section 39 or section 45, even after the service of a notice under section 46, the proper officer may proceed to assess the tax liability of the said person to the best of his judgment. The officer will take into account all the relevant material which is available or which he has gathered. This material could include past returns, e-way bills, invoices, and any other documents that provide information about the taxpayer’s business activities and transactions.

(2) Where the registered person furnishes a valid return within thirty days of the service of the assessment order under sub-section (1), the said assessment order shall be deemed to have been withdrawn. However, it’s important to note that the liability for payment of interest and late fees will still be applicable. Interest is a charge levied on the unpaid tax amount, calculated from the due date of filing the return to the date of actual payment. Late fee, on the other hand, is a penalty for late filing of the return, and it’s charged at a fixed rate per day of delay.

ASMT-14 Notice

GST ASMT-14 is a notice issued by the GST authorities to a taxpayer when a best judgment assessment is conducted under Section 62. This notice serves as the formal communication of the assessment order, detailing the assessed tax liability based on the tax officer’s best judgment due to the taxpayer’s failure to file returns. It is crucial for the recipient to understand this notice fully, as it empowers them to take the necessary steps to address the assessed tax liability.

Example Scenario

Suppose a business, XYZ Pvt Ltd, fails to file its GST returns for several months despite receiving a notice under Section 46. Using available information such as past returns, e-way bills, and other relevant data, the GST officer conducts a best judgment assessment and issues an ASMT-14 notice to XYZ Pvt Ltd detailing the assessed tax liability.

Legal Recourse and Proceedings

Legal Recourse

When a taxpayer receives an ASMT-14 notice, they should:

  1. Review the Notice: Carefully read the notice to understand the assessed tax liability and the basis for the assessment.
  2. File the Return: If the taxpayer believes the assessment is incorrect, they should file the pending return within 30 days from the date of the notice. This will nullify the assessment order, but interest and late fees will still be applicable.
  3. Prepare a Response: If filing the return is not feasible, gather relevant documents and evidence to challenge the assessment.

Legal Proceedings

If the taxpayer fails to respond adequately or if the response is not satisfactory, the GST authorities may proceed with the following:

  • Recovery Actions: If the taxpayer fails to respond adequately or if the response is not satisfactory, the GST authorities may proceed with recovery proceedings to collect the assessed tax, interest, and penalties. This can include attaching bank accounts, property, and other assets. It’s important to note that these actions can have a significant impact on the taxpayer’s financial situation and should be avoided if possible.

Penalties and Prosecution

Penalties for non-compliance with the ASMT-14 notice can include:

  • Monetary Penalty: Penalties under Section 122 of the CGST Act for failure to file returns and other related offences.
  • Interest: Interest on the unpaid tax as per Section 50 of the CGST Act.
  • Prosecution: In severe cases involving willful tax evasion or fraud, prosecution under GST laws may be initiated, leading to severe penalties and imprisonment.

Do’s and Don’ts on Receiving a GST ASMT-14 Notice


  1. Read Carefully: Understand the specific details of the assessed tax liability and the basis for the assessment.
  2. Gather Evidence: Collect all necessary documents and information to support your case if you believe the assessment is incorrect.
  3. Consult a Professional: Seek advice from a GST practitioner or tax consultant to formulate a strong response. These professionals are well-versed in GST laws and regulations and can provide valuable guidance on how to challenge the assessment, what kind of evidence to gather, and how to present your case effectively.
  4. File the Return Promptly: If feasible, file the pending return within 30 days to nullify the assessment order.
  5. Maintain Records: Keep copies of the notice and all related documents for future reference.


  1. Ignoring the Notice: It’s crucial to understand that ignoring the notice will lead to further legal actions, including penalties and recovery proceedings. This can significantly escalate the situation and lead to more severe consequences.
  2. Delay Response: Delaying your response can result in higher penalties and interest.
  3. Provide Incorrect Information: Ensure that the information provided in response to the notice is accurate and complete to avoid further queries or issues.
  4. Disregard Professional Advice: Consult a professional if unsure about the notice’s content or implications.

Legal Remedy

If a taxpayer believes that the assessment order is unjust or that they face undue hardship, they have the following remedies: This reassurance about the availability of legal recourse can help instil a sense of security and confidence in the recipients.

  1. File an Appeal: The taxpayer can file an appeal against the assessment order under Section 107 of the CGST Act within three months from the order date.
  2. Seek Legal Intervention: Approach the appropriate legal forum if the assessment order is deemed to be issued without proper jurisdiction or in violation of legal provisions.
  3. Request a Review: If there are valid grounds to believe that the assessment is incorrect, request that higher authorities review the assessment order. Valid grounds could include discrepancies in the information used for the assessment, errors in the calculation of the tax liability, or any other factors that could affect the accuracy of the assessment.


Section 62 of the CGST Act 2017 provides the framework for the best judgment assessment of non-filers of returns. The GST ASMT-14 notice is integral to this process, conveying the assessment order to the taxpayer. Understanding how to respond to such notices, the potential penalties, and the available legal remedies can help businesses navigate the best judgment assessment process smoothly and avoid possible legal issues. Proper preparation and professional guidance are essential to handling assessments effectively and ensuring compliance with GST regulations.

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