Intent of the process:
Provisional Assessment is a boon for the asessee as well as the department as this concept tries to minimise litigation by assessing the goods/services in advance on the request of the assessee so that in future there is no litigation on various aspects of assessment in relation to that particular goods/services
This concept is akin to advancde ruling with exception that in this case the assessee is asked to furnish security based upon the value of the goods/services
If taxpayer is unable to determine either the value or tax rate for the goods / services dealt in, then he/she can now file an application to the jurisdictional tax officer for provisional assessment.
The taxpayer files an application for Provisional assessment .If any clarification is required it is asked for by the department which the taxpayer complies with.
In case application is accepted and provisional assessment order is issued, taxpayer can now submit security to officer (both online and offline) and start making payment of tax due in periodical return, as specified in the order.
After the furnishing of security the Taxpayer completes the supply and files the return as per his periodicity which is being assessed in line with the provisional assessment
After finalisation of provisional assessment process, with the issue of final assessment order, taxpayer can now file application for withdrawal of security.
Discrepancy found on filing of return :Form GST ASMT-11
In case any discrepancy is found in return furnished by registered person, on the basis of risk parameters or by initiation of suo-moto process, tax officer can issue a notice, informing the user of such discrepancies and seek clarification from that person.
Registered person may either accept such discrepancies and pay tax, interest and penalty amount arising from such discrepancies and inform the same to the tax officer or furnish an explanation for the discrepancy. This facility has now been made available to taxpayers.
Forms applicable :
On a plain reading the system appears too robust free from any flaw and indicates the intent of government to reduce litigation but only time will tell about the real outcome but at least it is a step towards ease of doing business