Chapter XII - Assessment
Section 60
Section 60: Provisional assessment
Section 60 permits provisional CGST assessment where a taxable person cannot determine value or applicable rate, subject to an officer order, bond and final assessment.
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Need advice on Section 60?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) Subject to the provisions of sub-section (2), where the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, he may request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper 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.
(2) The payment of tax on provisional basis may be allowed, if the taxable person executes a bond in such form as may be prescribed, and with such surety or security as the proper officer may deem fit, binding the taxable person for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed.
(3) The proper officer shall, within a period not exceeding six months from the date of the communication of the order issued under sub-section (1), pass the final assessment order after taking into account such information as may be required for finalizing the assessment: Provided that the period specified in this sub-section may, on sufficient cause being shown and for reasons to be recorded in writing, be extended 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.
(4) The registered person shall be liable to pay interest on any tax payable on the supply of goods or services or both under provisional assessment but not paid on the due date specified under sub-section (7) of section 39 or the rules made thereunder, at the rate specified under sub-section (1) of section 50, from the first day after the due date of payment of tax in respect of the said supply of goods or services or both till the date of actual payment, whether such amount is paid before or after the issuance of order for final assessment.
(5) Where the registered person is entitled to a refund consequent to the order of final assessment under sub-section (3), subject to the provisions of sub-section (8) of section 54, interest shall be paid on such refund as provided in section 56.
Introduction
A genuine valuation or rate uncertainty can be put before the proper officer in writing. Provisional payment is authorised by an order, not by unilateral selection of a tentative rate.
Key takeaways
Written request
The taxable person gives reasons why value or tax rate cannot be determined. The officer’s provisional order is due within ninety days of receiving the request.
Bond and later adjustment
The officer may require a prescribed bond and surety or security for the difference between provisional and final tax.
Final assessment
A final order is ordinarily due within six months of communication of the provisional order, with reasoned extensions permitted under subsection (3).
Interest or refund
Tax remaining unpaid after the normal payment due date attracts section 50 interest; a resulting refund is subject to section 54 and section 56.
Written request
The taxable person gives reasons why value or tax rate cannot be determined. The officer’s provisional order is due within ninety days of receiving the request.
Bond and later adjustment
The officer may require a prescribed bond and surety or security for the difference between provisional and final tax.
Final assessment
A final order is ordinarily due within six months of communication of the provisional order, with reasoned extensions permitted under subsection (3).
Interest or refund
Tax remaining unpaid after the normal payment due date attracts section 50 interest; a resulting refund is subject to section 54 and section 56.
Practical checklist
Do
- Document the exact valuation or rate uncertainty.
- Apply in writing and retain the provisional order.
- Record bond/security and final-assessment deadlines.
- Reconcile final tax, interest or refund.
Avoid
- Assume a prescribed or notified detail without checking the applicable current instrument.
Frequently asked questions
May the taxpayer simply choose a provisional GST rate?
No. Section 60 requires a written request and a proper-officer order.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026