Sec 149 – Goods and services tax compliance rating

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Sec 149 – Goods and services tax compliance rating 2017-04-16T23:02:33+00:00

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  • Miloni ShahMiloni Shah
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    #1201 |

    (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.

    Priya MadrechaPriya Madrecha
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    149.1 Introduction
    Compliance rating system is one of the new ways of tax administration. This Section states that every taxable person would be rated based on certain parameters. It also provides that the rating would be published in the public domain.  149.2  Analysis
    The compliance rating is a unique form of rating the performance of the taxable persons. The parameters which would be considered for performance rating would be as prescribed.
    Amongst others, the rating of a taxable person would be relevant to determine the eligibility of input tax credit in respect of inward supplies, selection for scrutiny and other administrative / monitoring purposes.
    This Section provides as follows:
     Every person liable to pay GST 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. The details of parameters and methodology for rating would be as prescribed.
         The compliance rating score will be updated periodically and will be intimated as follows:
    o     to the taxable person;  o     will be placed in the public domain.
    149.3  Comparative Review
    Currently there is no rating system under any of the indirect tax laws.  149.4 FAQs
    Q1. What would the compliance rating be used for?
    Ans:  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.
    Q2. What are the parameters which would be considered in compliance rating?
    Ans:  The parameters and methodology of usage of the same would be as prescribed. These would be contained in the Rules.
    149.5 MCQs
    Q1.  How will the compliance rating be communicated?
    (a)    only 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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