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Non-assessee in Central Excise & Service Tax

by on December 5, 2012

Through registration a person or business entity enters in to tax regime. The registration code derived from registration certificate is the recognition or identity of the tax payer.

However, there arises few situations when persons or business entities who are either not required to pay tax or exempt from all tax gamut but require to pay some amount to tax collecting  government and at this point of time they need a code/recognition/identity to make payment of such amount.  These persons or business entities are called non-assesses in Central Excise & Service Tax. (Circular No. 919/09/2010-CX Dated 23/03/2010)

This registration is not required if the person or business entity is already registered under Central Excise or Service Tax.

1. What are the situations when non-assesses registration is required?

A. Persons or business entity such as (a) merchant exporter, (b) co-noticee, (c) refund applicant, (d) persons liable to pay penalties for late CE/ST registration and against whom the departmental authorities have initiated proceedings or issued a penalty order and (e) persons e.g. STPI, EOUs who are required to tender any payment under CE/ST Act /Rules are Non-assessee.

2. How can they register themselves?

A. Non-assessee registration is done online through ACES Website (

3. What is the registration procedure?

A. The steps are exactly the same as required for Central Excise or Service Tax Registration. The applicant has to follow following steps to register himself/itself:

1. Log in as a new/existing user on ACES Website.

2. Go to REG (Registration) menu.

3. Select form for Non-assessee. (Second option – “Fill Non-Assessee”)

Service tax non-assessee registration, non assessee

4. Fill the complete form with all compulsory fields and submit. PAN will be tallied with NSDL website.**

5. System will generate 15 digit PAN based registration code like routine Central Excise/Service Tax Registration Code.

**If the registration of Non-assessee is done to take refund or rebate, PAN must be ensured. However, PAN must be ensured in any other case and ACES website will automatically check the PAN online through NSDL database.

4. Is there any approval required to obtain such Non-assessee code?

A. No. The moment form is submitted as per above guidelines, the code generated by the system is final and therefore like routine registration of Central Excise or Service Tax, departmental officers will not be able to view this registration application. No physical submission of documents or physical verification of premises is required.

5. Can Departmental authority create Non-assessee codes?

A. Yes, just like Central Excise or Service Tax Registration codes, this code can also be generated by departmental authorities (Say the Superintendent/Inspector) after receiving relevant details from the person/business entity.

6. How to pay amount as Non-assessee after registration?

A. The Non-assessee can then pay the amount required to pay through the bank after submitting GAR-7 challan with Non-assessee 15 digit code.



From → Excise, Service Tax

  1. Piyush permalink

    how to cancel this registration if someone want to register himself under form ST 1 with same PAN no. or he can register himself without canceellation.

    • Hi Piyush,

      There is no such rule or ACES option like cancellation of non-assessee registration.

      Register as a normal service provider from the same id and password on ACES. Once done, I would suggest you to write a written reply to the respective range that you earlier applied as non-assessee, cancelling it now and applied as service provider.

      This later will remain as record for ST audit or any other audit to come in future.

      Let us know if we can help you further any how.

      Best Regards.

  2. DEVENDRA BHANDARI permalink


    • Hi Devendra,

      Usually, the person is not required to register till he is under SSI provisions (i.e. less than 1.5 crore). However, practically speaking, if the dealer has to make business with bigger companies then they have to take registration to show that they comply the tax laws.

      In this case, you need registration of SSI if he is a manufacturer. Even after registering for SSI, you can claim exemption till 1.5 crore and file NIL returns.

      If he is a trader, he can register as Dealer.

      Registering through A-1 application will grant both the options of manufacturer as SSI and dealer so please file A-1 form online on ACES.

      Please let us know if you have any further doubts in this regard.

      Best Wishes.

  3. sandeep mahajan permalink

    Why Form A-2 is being written in notification no. 17/2009, 52/2011 and 41/2012 for filing a declaration to obtain STC number from AC or DC.whereas STC code is issued by Superintendent service tax range. When an exporter ( not a manufacturer exporter registered with central excise) is registered with service tax for any purpose he does not require to file A-2 before filing service tax refund In Form A-1. My opinion is that A-2 form has no relevance and instead it should be written that the the exporter should get registration with service tax as asessee or non assesee. As in service tax the superintendent range is empowered now to issue registration. Pls comment.

    • Dear Sandeep,

      The refund and other notifications mentioned by you exist in service tax literature since long time now and updated from time and again. ACES, through which non-assessee number is issued, is in effect since only few years.

      Arguably, in times to come they should replace the procedure of alloting number for applicants who are already not registered and want to take benefit of exprot incentives from paper based application to ACES non-assessee online application. Only time can tell us.

      Best Wishes.

  4. sandeep mahajan permalink

    Suppose form A-2 is submitted with AC/DC as enumerated in notification, can he issue Service Tax Code? he cannot as in ACES module only Supdt has the powers. Refund can be claimed by both assessee and non assessee of service tax department. isn’t it?

    • Dear Sandeep,

      Even if it issued by an authority lower in heirarchy i.e. superintendent, I would say it will not lose it’s very purpose. It’s not a permission but just a recognision as a person applying refund in your jurisdiction. If you want follow that route, apply online, get us signed by superintendent and once done intimate the same to AC/DC via separate letter. They should not have any issues.

  5. Chandru permalink

    Shall we apply for service tax refund under notification no 41/2012 after obtaining NON ASSESSEE CODE through ACES ? Is non assesee code and stc number are same? Pls clarify.

    • Dear Sekar,

      Non-assessee codes are eligible for refund to merchant exporters. However, Notification No. 41/2012 does not mention clearly whether STC code and non-assessee code are the same. I believe, because they serve the same purpose, you should file refund after applying to non-assessee code.

      Best Wishes.

  6. Vikash permalink

    1) I have wrongly registered on the web in April as non assessee , but now I want to register as assessee. What should I do ?, facing difficulty in fresh registration

    2) I am a financial management and procurement specialist with a company as a consultant. I think my services will be charged under Management consultant.

    • Dear Vikash,

      Please find answers to your queries:

      1) There is no concept of surrender of Non-assessee code so you don’t need to do any formalities for closure of that log-in. Please register as a new user for fresh registration.

      2) Go to Service tax module of Register as a new user for fresh registration and file ST-1 under management or business consultant service. ST is to be paid @ 12.36% and yes you can avail benefit of Rs. 10 lakh for the first receipts.

      Best Wishes.

  7. lalaram tiwari permalink

    I have received certain amount of money for providing scientific consultancy services as an individual for a year. Do I pay service tax or income tax on this amount received from an US based research organization? If I have to pay service tax then how and how much? Thanks in advance

    • Dear Lalaram,

      As far as service tax is concerned, please note the said service can be called as “export of services” if following all conditions are satisfied:

      1. Payment should have been received in foreign currency.
      2. The service provided shall be used outside India (i.e. in US in your case).

      For deciding both service tax and income tax matters, we need more specific information e.g. year of provision of service, description of service in detail, total amount received, delivery of service etc. Hence, we request you to provide us this information to help you further.

      Best Wishes.

  8. Rammohan permalink

    I do consultancy for US customers and raise invoice in $ for which I get inward remittance. I do have some India income of about 4 lakhs. My total income of export and domestic crosses 10 lakhs whereas my India Income is only 4 lakhs and hence no ST liability. Do I need to register as a normal assesse?

    • Dear Rammohan,

      We suggest you take normal registration to charge ST on local services and take CENVAT of input services received on both local and export services.

      Balance CENVAT if any can be refunded if refund conditions are fulfilled.

      Best Wishes.

  9. Chetan permalink

    I had taken registration for Central Excise as a second stage dealer in 2009, which I have surrendered in Oct 2013. I have even closed the firm w.e.f 31st March 2013. The department did not carry out any audit till then. Now they have sent me a notice for EA-2000 audit for all 5 years.
    They say that I have to pay Service tax on all transport & courier bills which exceed Rs. 750/-. The calculation is 12.36% service tax on 25% of the bill which exceeds Rs. 750/-
    I have done the calculation. Now the amount comes to Rs. 1545/- only.
    The department says that I have to take registration for paying this amount.
    Kindly suggest what should I do ?

    • Dear Chetan,

      All (first/second stage dealers) are covered in the person responsible to pay service tax as service receivers if they pay freight to transporters of goods.

      The ST claim by department is completely true and also note law requires you to pay the outstanding delayed ST along with interest @18% for the number of days ST is delayed (i.e. Due date less payment date) and also penalty of at least 25% of ST to close the matter from further legal proceedings.

      For ST payment, yes, you need to register first. Pay ST along with interest and penalty under correct accounting code. Last step is to file the return of ST and afterwards immidiately surrender it.

      Let us know if we can help you anyhow in compliance.
      Amount in your case is very nominal but te law is very much clear in above procedure.

      Best Wishes.

  10. Jatin Aggarwal permalink

    Your page is really helpful thanks
    I am trader (merchant exporter) exporting natural stone sand stone, and paid service tax on the services used viz. Business Auxillary Service, Logistics Services, Custom House Agent Service, Clearing & Forwarding Services. Can I claim Service Tax Refund under Notification No. 41/2012 dated 29th June 2012..??

    I am not a registered assessee in Central Excise but I register as Non Assessee under Service Tax??
    Thank You

    • Hi Jatin,

      Yes you can avail refund benefit of Notification No. 41/2012 of service tax paid by you on export of natural stones.

      Best wishes.

  11. Jatin Aggarwal permalink

    Thank you very much for your reply.!!
    I approach Service Tax Department with the above issue, but even departmental officer did not know about the procedure of the same. Will you please tell me the document required and process for the same..?

    Thank You

    • Hi Jatin,

      Please find attached herewith CBEC link of documents required to be submitted –

      Please note I have copied the applicable refund documents below for your easy reference:

      1 Refund application in Form A-1 as annexed to the said notification for an exporter who is registered under Central Excise Act, 1944.

      2. A declaration in Form A-2 fro the exporter who is not registered under the Central Excise Act, 1944.

      3. For each taxable service specified in column (3) of the said Table, the exporter shall enclose all the documents (in original) specified in corresponding entry in column (4) of the said Table and the Form A-1 with the claim of refund.

      4. Invoice, Bill or Challan, or any other document issued in the name of the exporter, showing payment for service availed on which refund is claimed
      and the service tax payable shall be submitted in original after being certified: (i) in case the exporter is a proprietorship concern or partnership
      firm, the documents enclosed with the claim shall be certified by the exporter himself. (ii) where the exporter is a limited company, the documents enclosed with the claim shall be certified by the person authorized by the Board of Directors. (iii) where the amount of refund sought under a claim is more than 0.25% of the declared FOB of export, such certification, shall be done by the CA who audits the annual accounts of the exporter for the purposes of Companies Act, 1956 or the Income Tax Act, 1961, as the case may be.

      5. The documents enclosed with eth claim shall contain a certificate from the exporter to the effect that specified service, to which the documents pertains, has been received, the service tax payable thereon has been paid and the specified service has been used for export of goods under the shipping bill.

      6. Declaration as prescribed.

      Best Wishes.

  12. mayur darji permalink

    Dear Sir,

    my firm is providing PERMITTING COMMERCIAL USE OR EXPLOITATION OF EVENTS SERVICE wrongly registered as non assessee.

    My query is that
    1. can i registered as non assessee for the above service provided.
    2. How can i convert or conversion from Non assessee to normal registration i.e. service provider.

    kindly reply on

    • Hi Mayur,

      Non-assessee application is only a trade facility and not a registration itself and hence doesn’t require to surrender.

      Regarding registration please fill in ST-1 application online on ACES website.

      Best Wishes.

  13. Ashish jaiswa; permalink

    Dear Sir,

    i work a area based exempt company 50/2003 , i want some payment of excise duty under notification no 952/13/2011-CX dt 8 sep 2011. So plz define how to pay duty.

    • Hi Ashish,

      For any excise/ST payment use Challan GAR-7. You can download it in excel from Google, fill in details and submit it to bank.

      Best Wishes.

  14. JATIN AGGARWAL permalink

    I am claiming refund under N/N 41/2012 and file online claim afterwards submit the documents viz. Invoice Shipping Bill Bill of Lading Payment Advice Bank Statement to Service Tax Department. Now Department officer demanding Bank Realization Certificate.
    When we approach bank for the BRC, they didn’t even know about BRC and refused to provide us.
    Now please guide me what i can do??

    • Hi Jatin,

      For claiming refund under 41/2012 for service tax, you don’t require RBC. Note this is not a requirement listed in the CBEC’s suggested list of documents.

      Departmet is causing you unnecessary problem. Escalate to commissioner level and if that doesn’t work, let them reject the claim and go in appeal.

      Best Wishes.

  15. JATIN AGGARWAL permalink

    Thanks very much for reply!!
    They clearly deny and gave the reason that ” we are not eligible to grant refund without BRC”
    What is the requirement listed in the CBEC suggested list of documents?? Please give a official link

    I want BRC filled Format.. Please give if possible

    Thank You

  16. Hi Jatin,

    Please find link of CBEC suggested list for all refund –

    Search for your notification number.

    Regarding RBC format please hold it with us until we get back to you.

    Best Wishes.

  17. Ashish permalink

    Do a Non Assessee required to File ST-3 return?

    • Hi Ashish,

      Non-assessee don’t need to file any return. It’s just a stand-alone facility.

      Best Wishes.

  18. Ashish permalink

    Thank you

  19. S KRISHNADAS permalink

    Dear Sir,

    I represent an R&D organisation. Two days back, we had registered with ACES as “Non-Assessee” in order to remit “Pre-Deposit” amount @ 7.5% of the total service tax value as was advised by the department in order to file an appeal against the order passed against us for non-remittance of service tax.
    Please note that ACES allotted a temporary 15 digit code (suffixing 5 alphanumeric characters to the PAN) to us instantly. But, as far as the e-payment/payment is concerned, we are in a dilemma since the assessee code master/directory does not recognise our (temp.) code and as such are not able to remit the amount via online.
    Kindly advise us as to the procedure for remittance of the amount as the Bank has also taken a stand that since last October (ie. Oct., 2014), they are not authorised to receive manual remittance of GAR 7.
    Expecting your valuable reply/advice,
    Thanking You,
    S K Das,

    • Hi Das,

      We would suggest you first check your status online. Click on this link ( and enter your Non-assessee registration number with security questions answered.

      If your number is active/allocated properly, it will show you a summary of details of your organisation registered. It takes few days (in our experience 48 hours) after registration submitted successfully to activate an account and only then bank can recognise your number for payment.

      If it does then print the page and submit to bank as evidence.

      Hope this works for you.

      Best Wishes.

  20. Sandhya permalink

    My turnover this year was <10L and also going slow in 2015-2016.
    So, pls suggest should I take non-assesse or ST1 FORM.

    • Hi Singh,

      You don’t need Non-assessee number unless you want to claim any refund/rebate.

      This year once you cross your total billings by 9 lakhs it is advisable you take registration number however you can still choose not to charge and pay service tax on balance 1 lakh of exemption.

      Best Wishes.

  21. YASHPAL permalink

    I am merchant exporter claiming refund under N.N. 41/2012 ST dated 29.06.2012. registered as NON ASSESSEE in Service Tax Department with my name i.e. “Yashpal” instead of proprietorship firm name “Hariom Exports”. On this basis the Superintendent of Department refuse to grant refund. Also he said refund of only one service tax is available against one shipping bill but i avail many services like CHA THC BAS etc on the same shipping bill.
    What remedy is available for me??

  22. hitesh permalink

    What is the process to convert non assessee to assessee

    • Hi Hitesh,

      You don’t require to surrender your non-assesee number as it’s only a facility.

      Register on ACES by filing ST-1 as a normal service provider/receiver to become assessee.

      Best Wishes.

      • Hi Raman,

        Surrender existing one and register again with new address. This is only a facility not a full fledged registration so administration is quite liberal.

        Best Wishes.

  23. Raman permalink

    How can I amend non-assessee registration? I have amend my address in department records?

  24. Abraham Markos permalink

    Hi, I just want to confirm… The procedure for Customs non-assessee registration is different, no? This is only for Service tax and Excise, am I correct?

    • Hi Abraham,

      Yes, ACES non-assessee registration is only for excise and service tax and not for customs.

      Best Wishes.

  25. Prado permalink

    I have registered as Non Assessee and using the Service Tax no. I have received Service Tax. I want to remit the service tax. Can I do that using my non-Assessee Service Tax No. ?

    • Hi Sinha,

      You can’t use Non-assessee number for service collection and further deposit to government account. It’s illegal to collect service tax without proper service tax registration so we would advise you to apply a fresh service tax registration as soon as possible and then deposit service tax collected as per payment rules.

      Best Wishes.

  26. Dinesh Sharma permalink


    I am Merchant Exporter and registered as a non assessee and service tax refund as % basis with drawback,

    Please tell me what is return formalty or not

    • Hi Dinesh,

      There are no returns required for non-assessee registered persons. Returns are required only if you have ST registration number.

      Best Wishes.

  27. Akhilesh permalink

    Is service tax number ABLPS3684AST001 valid ?

  28. Ajay Maurya permalink

    We are Merchant exporter of Vegetables. We purchase packing Material on which manufacturer Charge Excise Duty. Can we take refund of above Excise Duty paid?

    If Yes, then how and what is procedure?

    • Hi Ajay,

      Yes excise on inputs used on export of goods is eligible as refund. Refund is available as per Rule 5 of the Cenvat credit rules.

      Best Wishes.

      • What is procedure and what are the documents required for claiming refund?
        Please tell me in detail sir…

      • Hi Ajay,

        Documents list is available from CBEC website.

        Like mentioned earlier procedure is as per rule 5 of Cenvat credit rules.

        Best Wishes.

      • CA Ajay Maurya permalink

        A merchant exporter is not a manufacturer of goods, so he can not avail CENVAT Credit. Then how he can take refund under rule 5 of CENVAT Credit?

      • Hi Ajay,

        Merchant exporter is trading to manufacturer exporter with an intention to export goods. In such case, a disclaimer certificate can be obtained from manufacturer exporter for proof of exports and further as an evidence for refund claim application.

        Best Wishes.

  29. We are a Merchant Exporter of Vegetable and Fruits. We purchase Packing material(Paper Box) on which manufacturer levy Excise Duty. Can we take refund of above exise duty?.

    If yes, then how and what is procedure?

    Please tell…….I am waiting for reply…….

  30. Hi Avirat,

    I went through your website and found it to be very useful. This is the first time i logged on to ACES. Instead of filling ST1 form, I wrongly filled Non Assessee form. Do i have to register again from the very beginning?

    • Hi

      Yes, i understand that you have opted for Non Assessee Form, so it remains that as it is so opted. If you intend to register as a service provider i.e. Service Tax Registration, you have to file ST 1 now.

  31. Amol Kshirsagar permalink

    If we have taken excise registration and now we want to apply for service tax refund on specified services used for export of goods. Do we also need to take service tax non assessee code

  32. I am running Proprietorship firm for website design and hosting and my business is less then 9 lakh.
    So as per Service Tax i am not liable to charge or pay service Tax but from December 2016, As per new amendment by Gov. of India, company from where i use to purchase server,domain and hosting has started charging service tax to me but still i am not charging.

    I want to know what is the procedure to obtain service Tax refund or what best can be done now please advice because i am loosing money now.

    • Hi

      1. Until you cross 10 Lakh, if you dont take registration, you can’t get refund.

      2. If you take registration and pay tax on your total revenue, including the first 10 lakh, you can reduce the tax paid to your vendor.

      As per the law, you are not loosing any money.

      • Thanks for Update. Can you please guide me step by step process to get refund. That will be very grateful.

  33. I hope you understand what i wrote. You are not eligible for refund at all.

    If you intend to take credit.

    a. Register your self first
    b. Work out your service tax liability on existing turnover
    c. Pay the above liability using service tax credits of the invoices of the vendors
    d. Prepare CENVAT Credit Register for invoices of the vendors.
    e. File returns with late fee or penalty as the case may be.

    The above wont make sense for you. However, you can do it, if you intend to.

  34. rakesh permalink

    Dear Sir, pls help. i have just registered my company 3- 4 months ago , and have recd a small order of 50 k for website design from govt. organisation . can i bill them without service tax . what will be, if they ask invoice , mentioning service tax.

  35. Riahav kedia permalink

    My client is exporters of goods and want to claim refund of input service available under notification number 41/2012. For obtaining service tax code number I have filed form A-2 but the department said that they have no idea about the Form A-2. So how should I proceed to obtain service tax code number. Further I can’t take registration by filing Form ST-1 as my client is neither a service provider nor service receiver liable to pay service tax under reverse charge mechanism.
    I have shown the department notification 41/2012 but they said they have no idea how to issue certificate under this mechanism.
    Please guide

    • Hi

      Your ST Reg No must be generated in your login. Pls check. If it is so, file a refund claim and get it processed.


    Hi , your website is very informative and thank you for the same.

    I have registered as a non assessee. For yr 16-17 my service turnover is less than 10L hence I understand I am not liable to pay any service tax. However for few orders, as required by my customer, I collected service tax in my service invoice and have promptly paid the same to govt through GAR7 challan. Do I need to file service tax return ?

    • Hi

      1. Any one holding non assessee can not collect tax.
      2. Take regular registration. Pay the tax collected with interest if any. Claim exemption in return for 10 lakh and file return.

  37. Dear Sir,

    2 day back i had registered for non assessee, as we have to remit RCM amount for 2016-17 and 2015-16. I had received the 15 digit reg number. now when i verify the reg number it is showing as if it is registered under Central excise and not under Service tax. How do i change this now.

    Also i am unable to login or reset the password. Kindly advice.

  38. Query regarding payment of service tax dues if assessee is not already registered-
    1. No option for new registration in service tax now.
    2. … as per this notice, “assessees not registered under ACES, to make payment of service tax may avail of the category of “non assessee registration” in ACES. ” but no option for “non assessee registration” is visible in ACES.
    3. Please advise how to make the payment? how can “non assessee registration” be done? In case no such registration possible, can we deposit the service tax dues in Excise accounting code by generating assessee code in excise?

    • Query regarding payment of service tax dues if assessee is not already registered-
      1. No option for new registration in service tax now. – no you can only pay GST and not service tax. Outstanding service tax can be paid as CGST or SGST as the case may be.

      2. … as per this notice, “assessees not registered under ACES, to make payment of service tax may avail of the category of “non assessee registration” in ACES. ” but no option for “non assessee registration” is visible in ACES. – Same as above.

      3. Please advise how to make the payment? how can “non assessee registration” be done? In case no such registration possible, can we deposit the service tax dues in Excise accounting code by generating assessee code in excise? – as above

      • Thanks for the reply. can we not pay the outstanding service tax in excise accounting code under “other receipts” head code 00380087 after generating code for assessee in excise?

  39. No. CA Sanjay Joshi

  40. There is only one CGST Ac head. So pay as CGST.

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