Section 60 helps a taxpayer that genuinely cannot work out the value of a supply or the rate of tax. On request, the officer lets it pay tax provisionally against a bond, and later fixes the final liability; the difference is paid with interest or refunded.
Key points
- Under section 60(1) of the CGST Act, 2017 a taxable person unable to determine the value or rate of tax may request provisional assessment; the officer must pass an order within ninety days allowing payment on a provisional rate or value.
- The taxpayer must execute a bond, with such surety or security as the officer thinks fit, for any difference on final assessment (section 60(2)); Rule 98 caps the security at 25% of the bond amount.
- The final assessment must be made within six months of the provisional order, extendable by a Joint or Additional Commissioner by six months and by the Commissioner up to four years more (section 60(3)).
- Tax found short carries interest from the original due date (section 60(4)); a refund carries interest under section 56, subject to the unjust-enrichment rule (section 60(5)).
The provisions
60(1)–(2)Request, order and bond
Statutory text
(1) Subject to the provisions of sub-section (2), where the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable there to, he may request the proper officer in writing giving reasons for payment of tax on provisional basis and the proper officer shall pass an order, within a period not later than ninety days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him.
(2) The payment of tax on provisional basis may be allowed, if the taxable person executes a bond in such form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the taxable person for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed.
*Enforced w.e.f. 1st July, 2017.
- Rule 98, CGST Rules; Forms GST ASMT-01 to ASMT-09
60(3)–(5)Final assessment; interest; refund
Statutory text
(3) The proper officer shall, within a period not exceeding six months from the date of the communication of the order issued under sub-section (1), pass the final assessment order after taking into account such information as may be required for finalizing the assessment:
Provided that the period specified in this sub-section may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the Joint Commissioner or Additional Commissioner for a further period not exceeding six months and by the Commissioner for such further period not exceeding four years.
(4) The registered person shall be liable to pay interest on any tax payable on the supply of goods or services or both under provisional assessment but not paid on the due date specified under sub-section (7) of section 39 or the rules made thereunder, at the rate specified under sub-section (1) of section 50, from the first day after the due date of payment of tax in respect of the said supply of goods or services or both till the date of actual payment, whether such amount is paid before or after the issuance of order for final assessment.
(5) Where the registered person is entitled to a refund consequent to the order of final assessment under sub-section (3), subject to the provisions of sub-section (8) of section 54, interest shall be paid on such refund as provided in section 56.
What it means
The final order (ASMT-07) follows a notice (ASMT-06). Interest under section 50(1) runs on any shortfall from the day after the original due date, whether paid before or after the final order. A refund is paid with interest under section 56, subject to section 54(8); the relevant date for refund is the date of adjustment after final assessment (Explanation to section 54, clause (f)). The security is released on application (ASMT-08, ASMT-09).
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- When can a taxpayer seek provisional assessment under GST?
- When it cannot determine the value of a supply or the rate of tax. It applies under section 60 of the CGST Act; the officer must decide within ninety days, and the taxpayer executes a bond with security up to 25% of the bond amount.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The request is made in Form GST ASMT-01; the officer may seek further information (ASMT-02, reply in ASMT-03) and passes the provisional order in ASMT-04. The bond is in ASMT-05, with security not exceeding 25% of the bond amount (Rule 98(3)). Provisional assessment suits genuine valuation or classification uncertainty — for instance, related-party pricing awaiting a valuation — rather than a dispute that an advance ruling could settle.