Section 63 of CGST Act - Assessment of Unregistered Persons
Updated: 16 September 2026
Section 63 of the Central Goods and Services Tax Act, 2017 empowers the proper officer to make a best judgment assessment where a taxable person was required to obtain GST registration but failed to do so, or where registration was cancelled under section 29(2) while tax remained payable.
Text and meaning of Section 63
Section 63 - Assessment of unregistered persons.
Notwithstanding anything to the contrary contained in section 73 or section 74 or section 74A, where a taxable person fails to obtain registration even though liable to do so, or where the person's registration has been cancelled under sub-section (2) of section 29 but tax was payable, the proper officer may assess the tax liability to the best of the officer's judgment for the relevant tax periods.
The assessment order must be issued within five years from the date specified under section 44 for furnishing the annual return for the financial year to which the unpaid tax relates. No assessment order can be passed without giving the person an opportunity of being heard.
The paragraph above states the provision in plain language for readability. For the enacted text and amendments, refer to the official statutory resources linked on this page.
Who can be assessed under Section 63?
- A taxable person who was liable to obtain registration under the CGST Act but failed to register.
- A person whose GST registration was cancelled under section 29(2), but who remained liable to pay tax for a relevant tax period.
What is best judgment assessment?
A best judgment assessment is an assessment made by the proper officer on the basis of relevant material available or gathered when the taxable person has not complied with the registration requirement or falls within the other situation covered by Section 63. The power is not unrestricted: the statutory time limit, prescribed procedure and opportunity of hearing must be observed.
Procedure under Rule 100 of the CGST Rules
Rule 100(2) of the CGST Rules, 2017 prescribes the procedure for assessment under Section 63. The proper officer issues a notice in FORM GST ASMT-14, stating the grounds on which best judgment assessment is proposed. The taxable person is allowed fifteen days to submit a reply. After considering the reply, if any, the officer may pass the assessment order in FORM GST ASMT-15.
| Stage | Relevant provision / form | Purpose |
|---|---|---|
| Proposed assessment | Rule 100(2) - FORM GST ASMT-14 | Notice setting out the grounds for proposed best judgment assessment. |
| Reply | Rule 100(2) | Fifteen days are allowed to furnish a reply to the notice. |
| Assessment order | FORM GST ASMT-15 | Order determining the amount assessed and payable after following the prescribed procedure. |
Five-year time limit under Section 63
The assessment order under Section 63 must be issued within five years from the date specified under section 44 for furnishing the annual return for the financial year to which the unpaid tax relates. This statutory limit should be checked with reference to the particular financial year and the legally applicable annual-return due date.
Opportunity of hearing is mandatory
The proviso to Section 63 expressly requires that the person be given an opportunity of being heard before an assessment order is passed. This requirement operates in addition to the notice-and-reply procedure prescribed by Rule 100(2).
Section 63 and Sections 73, 74 and 74A
Section 63 begins with a non-obstante clause and now refers to sections 73, 74 and 74A. Following the Finance (No. 2) Act, 2024 changes, sections 73 and 74 concern determination of tax for periods up to Financial Year 2023-24, whereas section 74A provides the determination framework for Financial Year 2024-25 onwards. The reference to section 74A was inserted in Section 63 with effect from 1 November 2024.
Related CGST provisions
- Section 59 - Self-assessment
- Section 60 - Provisional assessment
- Section 61 - Scrutiny of returns
- Section 62 - Assessment of non-filers of returns
- Section 64 - Summary assessment in certain special cases
Frequently asked questions
Can Section 63 apply merely because a person is unregistered?
No. The provision addresses a taxable person who was liable to obtain registration but failed to do so, or a person whose registration was cancelled under section 29(2) but who was liable to pay tax.
Which form is used for notice under Section 63?
Rule 100(2) prescribes FORM GST ASMT-14 for the notice proposing best judgment assessment.
Which form is used for the assessment order?
The assessment order under Section 63 is passed in FORM GST ASMT-15.
Is a hearing required before the order?
Yes. Section 63 expressly provides that no assessment order shall be passed without giving the person an opportunity of being heard.
Note: This page is a general legal information resource. The applicable tax period, registration liability, notifications, limitation computation and facts of a particular case should be verified before taking action.