Published 13 October 2026
Sometimes a business cannot say what its tax is. A new product may fall between two headings with different rates. A price charged to a related company may be waiting on a valuation. Paying at the lower rate risks a demand with interest and penalty later. Paying at the higher rate costs money that may never come back. Section 60 of the CGST Act offers a third course. The business pays on a basis the officer fixes provisionally, gives a bond and security for any difference, and the tax is settled later by a final order.
This is the only kind of assessment the taxpayer asks for. This guide covers the request, the order, the bond and security, the final assessment, interest and refund, and the release of the security. The other kinds of assessment are mapped in Assessment under GST: the Kinds, and Who Does It.
When the section applies
Section 60(1) applies “where the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto”. Two grounds only are named: value and rate. The person “may request the proper officer in writing giving reasons for payment of tax on provisional basis”. The 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”.
Rule 98 of the CGST Rules prescribes the procedure. It speaks of “every registered person”, so the request is made from a GSTIN on the common portal. For Central tax, CBIC’s Circular No. 3/3/2017-GST assigns the functions under section 60(1) to (3) to the Deputy or Assistant Commissioner.
A question of classification or valuation can also be put to the Authority for Advance Ruling under section 97. That is a separate route. It produces a ruling on the question, not a provisional rate with security.
What to have ready
| Item | Where it comes from |
|---|---|
| Description of each good or service, with its HSN or SAC | Books, product literature |
| The rate of tax and the value proposed for each (central, State or UT, integrated tax and cess) | The taxpayer’s own working |
| Average monthly turnover of each good or service | Books |
| The reasons value or rate cannot be determined | Contracts, price lists, technical specifications, any related-party agreement or pending valuation |
| Supporting documents, in PDF or JPEG | Books; the portal’s manual allows up to four files of 5 MB each |
| A bank guarantee for the amount the order fixes, and the bond | The person’s bank; the bond format downloaded from the portal |
The table in FORM GST ASMT-01 has these columns: HSN, name of the commodity or service, tax rate (central, State/UT, integrated tax and cess), valuation, and average monthly turnover. The form then asks for the “Reason for seeking provisional assessment” and the documents filed. The portal’s FAQ confirms that one application may cover more than one good or service.
The forms
| Form | By | Purpose | Rule |
|---|---|---|---|
| ASMT-01 | Taxpayer | Application for provisional assessment | 98(1) |
| ASMT-02 | Officer | Notice seeking additional information or documents | 98(2) |
| ASMT-03 | Taxpayer | Reply to ASMT-02 | 98(2) |
| ASMT-04 | Officer | Order allowing provisional payment, fixing the value or rate, the bond amount and the security | 98(3) |
| ASMT-05 | Taxpayer | Furnishing of security, with the bond | 98(4) |
| ASMT-06 | Officer | Notice seeking information for final assessment | 98(5) |
| ASMT-07 | Officer | Final assessment order | 98(5) |
| ASMT-08 | Taxpayer | Application to release the security | 98(6) |
| ASMT-09 | Officer | Order releasing the security, or rejecting the application | 98(7) |
Step 1: the application, ASMT-01
Under rule 98(1), the application is filed “electronically in FORM GST ASMT-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner”, with “the documents in support of his request”.
The portal’s user manual describes the steps:
- Go to Services > User Services > My Applications, select “Provisional Assessment ASMT-01” as the application type, and choose NEW APPLICATION.
- On the Goods tab, search the HSN chapter; on the Services tab, search the SAC. Enter the tax rate, valuation and average monthly turnover for each item.
- Enter the reasons for seeking provisional assessment and upload any documents. The manual says documents are optional.
- Tick the verification, select the authorised signatory, enter the place, and preview.
- File with DSC or EVC. The portal issues an ARN, and the status becomes “Pending for action by tax officer”.
Step 2: further information, ASMT-02 and ASMT-03
Rule 98(2) allows the officer to issue a notice in ASMT-02 “requiring the registered person to furnish additional information or documents”. The applicant “shall file a reply to the notice in FORM GST ASMT-03, and may appear in person before the said officer if he so desires”. The form of ASMT-02 provides a placeholder of 15 days for the reply. It warns that if nothing is received, the application “is liable to be rejected without any further reference to you”.
On the portal the reply is filed from the REPLIES tab of the case, under ADD REPLY > ADDITIONAL INFORMATION GST ASMT-02. The manual says a “Personal Hearing Required?” option appears where the officer has not already fixed a hearing in the notice.
Step 3: the order, ASMT-04
Rule 98(3) requires an order in ASMT-04 “indicating the value or the rate or both on the basis of which the assessment is to be allowed on a provisional basis and the amount for which the bond is to be executed and security to be furnished not exceeding twenty-five per cent. of the amount covered under the bond”.
The order fixes a date by which the bond and security must be furnished. ASMT-04 states the consequence of missing it: “the provisional assessment order will be treated as null and void as if no such order has been issued”. The rules prescribe no form for rejecting an application. The portal’s FAQ says that if the application is not accepted, an order of rejection is issued.
Step 4: the bond and security, ASMT-05
Rule 98(4) requires a bond “in accordance with the provisions of sub-section (2) of section 60 in FORM GST ASMT-05 along with a security in the form of a bank guarantee”. Two points in the rule widen its reach:
- A bond furnished under the SGST Act or the IGST Act “shall be deemed to be a bond furnished under the provisions of the Act”.
- In this rule, “amount” includes “the amount of integrated tax, central tax, State tax or Union territory tax and cess payable in respect of the transaction”.
ASMT-05 carries three declarations by the taxpayer. The guarantee secures the differential tax. The person undertakes “to renew the bank guarantee well before its expiry”, failing which the department may recover from the bank. And the department may invoke the guarantee if the person fails “to furnish the required documents/ information to facilitate finalization”. The bond binds the obligor to pay all dues demandable after final assessment “along with interest, if any, within thirty days of the date of demand thereof being made in writing”. It is signed by the obligor before two witnesses and accepted by the officer on behalf of the President or the Governor.
The form notes that a “hard copy of the bank guarantee and bond shall be submitted on or before the due date mentioned in the order”. The portal’s manual describes the online part. From the SECURITY tab, choose FILE > FURNISH OF SECURITY, download the bond format, enter the guarantee reference, bank, date and amount, upload the bond and guarantee, and file with DSC or EVC. The status becomes “Security furnished, pending approval”. If the officer finds the guarantee short, invalid or expired, the officer may ask for it to be resubmitted or modified, through the same tab.
While the provisional order runs
The person pays tax in the ordinary returns at the rate or on the value fixed in ASMT-04. The portal’s FAQ describes this as making “payment of tax on the value/tax rate on provisional basis as specified in the order”. The guarantee must be kept alive. Under the ASMT-05 declaration, a guarantee allowed to lapse may be invoked.
Step 5: final assessment, ASMT-06 and ASMT-07
Section 60(3) requires the final order “within a period not exceeding six months from the date of the communication of the order issued under sub-section (1)”. The proviso allows extensions “on sufficient cause being shown and for reasons to be recorded in writing”:
- 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”.
Before the final order, rule 98(5) provides for a notice in ASMT-06 “calling for information and records required for finalization”. The form again shows a 15-day placeholder and offers a personal hearing. The reply is filed from the REPLIES tab, under ADDITIONAL INFORMATION GST ASMT-06.
The final order in ASMT-07 specifies “the amount payable by the registered person or the amount refundable, if any”. The form is set out as brief facts, the applicant’s submissions, discussion and findings, and the conclusion and order. Section 60 does not say what follows if no final order is passed within the time allowed.
Interest on a shortfall
Section 60(4) makes the registered person liable to interest on tax payable under provisional assessment “but not paid on the due date specified under sub-section (7) of section 39”. The rate is the rate under section 50(1), fixed at 18 per cent by Notification No. 13/2017-Central Tax. It runs “from the first day after the due date of payment of tax in respect of the said supply … till the date of actual payment, whether such amount is paid before or after the issuance of order for final assessment”. Paying early stops the interest running. It does not cancel interest already accrued.
ASMT-07 is not among the orders that rule 142(5) requires to be summarised in DRC-07. Recovery of the difference rests on the bond and the guarantee. The bond calls for payment within thirty days of a written demand.
Refund of an excess
Under section 60(5), where the final order makes the person entitled to a refund, “subject to the provisions of sub-section (8) of section 54, interest shall be paid on such refund as provided in section 56”. The reference to section 54(8) brings in unjust enrichment. The refund is paid to the applicant only if “he had not passed on the incidence of such tax and interest to any other person”. Otherwise it is credited to the Consumer Welfare Fund.
The refund is claimed in RFD-01. Rule 89(2)(i) requires “the reference number of the final assessment order and a copy of the said order in a case where the refund arises on account of the finalisation of provisional assessment”. For the two-year limit in section 54(1), clause (f) of Explanation 2 to section 54 fixes the relevant date as “the date of adjustment of tax after the final assessment thereof”.
Step 6: release of the security, ASMT-08 and ASMT-09
After the final order, the applicant “may file an application in FORM GST ASMT-08 for the release of the security” (rule 98(6)). On the portal this is done from the SECURITY tab, under RELEASE OF SECURITY. Under rule 98(7), the officer “shall release the security … after ensuring that the applicant has paid the amount specified” in the final order, and issue ASMT-09 “within a period of seven working days from the date of the receipt of the application”. ASMT-09 either releases the security or rejects the application with reasons. The portal’s FAQ adds that release follows approval by the competent authority and that the officer physically hands back the guarantee and bond.
Who signs
ASMT-01, ASMT-03, ASMT-05 and ASMT-08 each carry a verification by the authorised signatory, with name and designation, and are filed with DSC or EVC. The bond is signed by the obligor, before two witnesses.
What can be challenged
Section 60 orders are orders “passed under this Act”. An appeal against them lies under section 107, within three months of communication, with the pre-deposit. Section 121 does not exclude them. The procedure is in Appeals and Pre-Deposit. Where the final order finds a shortfall, the interest under section 60(4) runs from the original due dates in any case.
A note on the portal’s own pages: the user manual and FAQ both list the security as furnished “in Form GST ASMT-06”. Rule 98(4) prescribes ASMT-05. ASMT-06 is the officer’s notice before final assessment.
The procedure in order
- Identify the goods or services whose value or rate cannot be determined, and the reasons.
- File ASMT-01 with the proposed rate and value, average monthly turnover and documents, verified with DSC or EVC.
- Reply to any ASMT-02 in ASMT-03 by the date in the notice, with a request for a hearing if one is wanted.
- On receiving ASMT-04, furnish the bank guarantee and bond through ASMT-05 by the date fixed, and hand in the hard copies.
- Pay tax in the returns at the provisional rate or value, and keep the guarantee renewed.
- Reply to ASMT-06 before the final order.
- On the final order in ASMT-07, pay any shortfall with interest from the original due dates, or claim any refund in RFD-01 with the order.
- Apply in ASMT-08 for release of the security. ASMT-09 is due within seven working days.
The next guide covers scrutiny of returns under section 61: the ASMT-10 notice, the reply in ASMT-11, and what follows.