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GST Compliance Rating

What is GST Compliance Rating?

GST compliance rating is a rating score which will be given to a registered person on the basis of his history of compliance with the rules and regulation of GST.

The person who abide by the rules and regulations and file their taxes and returns will allotted a good rating while person with defaults and late submission will be allotted a bad rating.

The rating will be available in public domain and will be evaluated at regular intervals.

Although, GST Compliance rating is not yet declared by the GSTIN so you will be unable to see your or others rating.

What will be the use and benefit of Compliance Ratings?

Under GST a buyer will be allowed input tax credit only when the seller files the proper details in his GSTR-1. If the supplier fails to file his returns or makes a delay, it will surely have an impact on buyer. So GST compliance rating will be a measure for the buyer to look out before entering into any transaction. A person will surely try to avoid purchasing from a person with low ratings.

Other use of GST compliance rating will be on the refund claims. As per GST law the refunds under GST will be processed on merit basis. A person with high ratings will be refunded the amount of tax immediately. While the refunds of person with low rating will be given after due verification and thus causes to delay the refund with a substantial amount of time.

So, every person should try to maintain a high level of ratings to avoid bad reputation as well as loss of sales.

How GST compliance rating will be calculated?

The basis on which such rating will be determined in not yet declared. But the rating will be mostly based on the following parameters

  • Timely filing of returns.
  • Timely payment of taxes.
  • Showing correct sales and GSTIN in Details of outward supplies.
  • Timely correction in GSTR-1 when details are added or modified by the buyers in GSTR-2A.
  • No evasion of taxes found.


About Prateek Agarwal

Prateek Agarwal is a Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He writes mainly about GST and Finance.

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