GST ASMT-04 explained: the order allowing or rejecting provisional assessment

What the order contains

If provisional assessment is allowed, ASMT-04 states the value or the rate, or both, on which you will pay tax for the time being. It also states the amount for which you must execute a bond and the security to be furnished. Rule 98 caps the security at 25 percent of the amount covered by the bond.

• Goods or services covered
• Provisional value and/or rate allowed
• Bond amount
• Security amount and form, usually a bank guarantee

What to do once you receive it

Read the order against your application. Then execute the bond in ASMT-05 with the security specified. From then on, charge and pay tax on the covered supplies at the provisional figures and keep supply-wise records, because they will be reconciled at final assessment.

If the order allows provisional assessment for only some of the supplies in your application, keep the others under normal self-assessment and maintain separate records for each category. Mixing them makes the final reconciliation harder and can lead to disputes about which invoices were covered.

If the request is rejected

A rejection means you must self-assess value and rate as usual. Read the reasons carefully: if the officer considers the question one of law, an advance ruling may be the better route. If you believe the rejection is wrong, the order is appealable to the Appellate Authority in APL-01 within three months of communication.

Points to watch

• The final assessment order in ASMT-07 is due within six months of ASMT-04, subject to extensions allowed under Section 60
• Interest applies on any tax found short at final assessment, from the original due date
• Excess tax found at final assessment is refundable with interest, subject to the unjust enrichment rules
• Do not let the bank guarantee lapse while the assessment is open

Get it handled for you

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.