Section 62 – Assessment of Non-Filers of Returns
Section 62 of CGST Act, 2017 – Assessment of Non-Filers of Returns
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Purpose and Scope of Section 62
Section 62 empowers the tax authorities to carry out a best judgment assessment where a registered person fails to furnish returns even after issuance of notice under Section 46.
This section ensures that:
- Tax liability does not remain unassessed
- Non-filing of returns does not block revenue collection
2. Statutory Provision – Section 62
Section 62(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 44
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,
taking into account all the relevant material available or gathered,
within a period of five years
from the due date of the annual return for the financial year
to which the tax not paid relates.
Section 62(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the said assessment order shall be deemed to have been withdrawn,
but the liability for interest or late fee shall continue.
3. Preconditions for Assessment under Section 62
Assessment under Section 62 can be initiated only if:
- Return under Section 39 or 44 is not filed
- Notice under Section 46 has been served
- Taxpayer fails to comply with the notice
Thus, Section 46 notice is a mandatory prerequisite.
4. Nature of Best Judgment Assessment
Best judgment assessment means:
- Ex-parte assessment
- Based on available data and reasonable estimates
- No personal hearing is mandatory
The officer may rely on:
- Past returns
- E-way bill data
- GSTR-1, GSTR-2B
- Third-party information
5. Time Limit for Passing Assessment Order
The assessment order under Section 62 must be passed:
- Within 5 years from the due date of annual return for the relevant financial year
This is a statutory outer limit.
6. Withdrawal of Assessment Order – Relief to Taxpayer
If the taxpayer:
- Files a valid return
- Within 30 days of service of assessment order
then:
- Assessment order is deemed to be withdrawn
- No separate cancellation order is required
However:
- Interest under Section 50
- Late fee under Section 47
remain payable.
7. Section 62 vs Sections 73 & 74
Key distinctions:
- Section 62: For non-filers, without SCN
- Section 73 / 74: For tax short-paid or wrongly availed, with SCN and adjudication
Section 62 overrides Sections 73 and 74.
8. Practical Consequences of Section 62 Assessment
- High estimated tax demands
- Interest and late fee liability
- Initiation of recovery proceedings
- Cancellation of registration
These assessments are often aggressive.
9. Compliance Strategy for Taxpayers
- Never ignore Section 46 notice
- File pending returns immediately
- Use the 30-day window strategically
- Rectify defaults before coercive recovery
Timely filing is the best defence.
10. Related Provisions
- Section 46 – Notice to return defaulters
- Section 59 – Self-assessment
- Section 73 – Determination of tax (non-fraud)
- Section 50 – Interest
11. Professional Insight
Section 62 is the costliest consequence of return non-filing. Once best judgment assessment is passed, the burden shifts entirely to the taxpayer. Filing returns on time is far cheaper than fighting estimates.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Non-filing of returns may lead to assessment, recovery and cancellation proceedings.
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