Section 63 reaches those outside the return system: persons who should have registered but did not, and persons whose registration was cancelled by the officer but who remained liable to tax. The officer may assess them on best judgment, after a hearing.
Key points
- Under section 63 of the CGST Act, 2017, notwithstanding sections 73, 74 and 74A, the proper officer may assess to the best of his judgment a taxable person who failed to register though liable, or whose registration was cancelled under section 29(2) but who was liable to pay tax.
- The order must be issued within five years from the due date of the annual return for the year to which the unpaid tax relates.
- No order may be passed without giving the person an opportunity of being heard (proviso); the procedure is a notice in Form ASMT-14 and an order in ASMT-15 (Rule 100(2)).
The provisions
63Assessment of unregistered persons
Statutory text
Notwithstanding anything to the contrary contained in section 73 or section 74 1[or section 74A], where a taxable person fails to obtain registration even though liable to do so or whose registration has been cancelled under sub-section (2) of section 29 but who was liable to pay tax, the proper officer may proceed to assess the tax liability of such taxable person to the best of his judgment for the relevant tax periods and issue an assessment order within a period of five years from the date specified under section 44 for furnishing of the annual return for the financial year to which the tax not paid relates:
Provided that no such assessment order shall be passed without giving the person an opportunity of being heard.
*Enforced w.e.f. 1st July, 2017.
1. Inserted by section 131 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
- Rule 100(2), CGST Rules; Forms GST ASMT-14, ASMT-15
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
- Can GST be assessed on a person who never registered?
- Yes. Under section 63 of the CGST Act the officer may assess the tax on best judgment, after a hearing, within five years from the due date of the annual return for the year concerned.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The section covers two groups: those who crossed the threshold in section 22 or fell within section 24 but never registered, and those whose registration the officer cancelled under section 29(2) while they continued to make taxable supplies. A person who itself applied for cancellation under section 29(1) is not within the second group. Where fraud or suppression is alleged, the department may instead proceed under section 74 or 74A, which also provide for penalty.