Section 149 of GST – Goods and services tax compliance rating. Complete Details for GST Section 149 as per GST Act 2017 2017. In this GST Section you may find all details for Goods and services tax compliance rating as per GST Act 2017.
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Section 149 of GST – Goods and services tax compliance rating
Statutory provision
(1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act.
(2) The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed.
(3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed.
Analysis and Updates
Introduction
Compliance rating system is one of the new ways of tax administration. This section states that every registered person would be rated based on certain parameters. It also provides that the rating would be published in the public domain.
Analysis
With the aim of increasing governance by publishing information about the extent of compliance by each taxable person, this section provides a compliance rating that varies periodically. The proposed compliance rating system is a unique form of rating the performance of the registered persons. The parameters which would be considered for performance rating would be prescribed / notified.
Among others, the rating of a registered person would be relevant to show reliability of the supplier to pay taxes on time so that recipient of supplies can exercise some caution based on the published compliance rating of suppliers and for selection for scrutiny and other administrative / monitoring purposes.
This section provides as follows:
- Every registered person shall be rated and will be assigned a GST compliance rating score.
- The rating would be based on his record of compliance with the provisions of CGST, IGST and SGST/UTGST. The details of parameters and methodology for rating would be prescribed.
- The compliance rating score will be updated periodically and will be-
- Intimated to the registered person; and
- placed in the public domain
- Intimated to the registered person; and
Presently, compliance rating is still to be operationalized.
Comparative Review
Previously there was no rating system under any of the indirect tax laws.
Frequently Asked Questions
What would the compliance rating be used for?
It would be for determining the eligibility for credit on inward supplies, selection of cases for audit / scrutiny, grant of benefits etc, as may be prescribed.
What are the parameters which would be considered in compliance rating?
The parameters and methodology of usage in determining compliance rating have not been prescribed yet.
MCQs
Q1. How will the compliance rating be communicated?
(a) to the relevant taxable person
(b) will be put up in the public domain
(c) neither (a) nor (b)
(d) both (a) and (b).
Ans. (d) both (a) and (b).
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