Provisional assessment under Section 60

When it is used

Section 60 of the CGST Act applies where a taxable person is unable to determine the value of goods or services or the rate of tax applicable. A request is made in writing in Form GST ASMT-01, with reasons and supporting documents.

Typical situations include a new product whose classification is unclear, or a pricing arrangement with a related party where the final value depends on later events.

The process

• The officer may seek more information through ASMT-02, answered in ASMT-03.
• The officer passes an order in ASMT-04 within 90 days, allowing payment at a specified value or rate.
• The taxpayer executes a bond in ASMT-05 with security, binding them to pay any difference after final assessment.
• Final assessment is to be made within six months of the provisional order, extendable by the specified senior officers.
• Tax found payable on final assessment carries interest from the original due date; excess paid is refundable.

Is it worth using

Provisional assessment is rarely used in practice, because it requires a bond and keeps the matter open. For pure classification questions, an advance ruling may give more certainty. But where value genuinely cannot be fixed at the time of supply, it can protect you from penalty, since tax is paid on an approved basis. A professional can help decide which route fits your case.

Get it handled for you

Have a GST question or problem? Our chartered accountants can review it for free and tell you the next step. Call or WhatsApp +91 63677 44602, or use the form below.

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.