29 Jun The Concept of GST Compliance Rating
The GST compliance rating is a numerical score that measures how well your company adheres to GST rules. This score is on a scale of zero to 10, with 10 being the best and zero being the worst.
Reason behind the Concept of GST Compliance Rating
The main reason behind the concept of GST compliance rating is to motivate taxpayers to comply with the GST provisions. Moreover, the GST compliance rating will also restrain the delay of ITC due to the non-compliance of certain persons.
As the GST compliance rating process is not yet notified by the government but the rating will surely depend on the following factors:
- Filing GST returns on time
- Timely payment of tax liability
- Reconciling mismatches in filed GST Returns
- Following all other prescribed GST compliances
Advantages of GST Compliance Rating Concept
- Immediate GST Refunds and ITC
- Retaining old clients and attracting new ones
- Lessen the chances of GST audits by tax authorities