compliance rating


compliance rating



Revenue secretary Hasmukh Adhia said that system of GST compliance rating will be introduced for every trader and business, where they will be rated based on their track record.

Rating will be made available on GSTN portal and can be viewed by public.

The parameters for compliance rating scores of the taxpayer are to be determined considering following:

  • Regularity in payment of taxes.
  • Timely e-filing of returns.
  • Matching of transactions of inward and outward supplies.
  • Cooperation in dealing with GST department.

There is one more concept of black listing of dealers based on low compliance rating. Following defaults will lead to black listing of dealers:

  • Continuous default for 3 months in ITC which has been reversed.
  • Continuous default in filing of returns for 3 months.
  • also continuous reporting of short sales beyond a period of months.

Well, this is an excellent initiative taken by the Government as it will help businesses to verify worthiness and credentials of their dealers.

 Why not extend this concept further. Let it be extended to officers and GSTN which are important part of the total GST environment. Let us imagine a scenario where along with tax payer, GSTN and GST officers are also given rating for their performance. Now this is called fair play in true sense. Rating of performance of officers and GSTN should be done by the tax payers.  With introduction of this, all the components of GST i.e. taxpayer and tax collector will be placed at same level in rating system, all will strive for betterment and improved performance.

Grounds on which compliance rating for officers and GSTN can be determined:

  • Guidance provided by officers to taxpayers.
  • Timely response to queries of taxpayers by officers.
  • Cooperation in dealing with taxpayers.
  • Timely updating of returns utility.
  • Efficiency of GSTN.

Taxpayers can consult with the officers comfortably as officers would act not merely as tax consultant but as a business facilitator so that time and resources of taxpayers are saved and most importantly their queries are solved. It will also act as a motivation for officers to perform better. Strict action can be taken against officers with constant poor rating.

 It’s time for the law maker to know the fact that GSTN was not able to meet the expectation of the business community at large. Ground level officers have not done much to resolve and take up the issues appropriately. GSTN helpdesk is not taxpayer friendly, ultimately resulting in wastage of time, money and resources of the of the country thereby defeating all the purpose for which it is created.

Undeniable fact is that the tax officers are well aware of the ground realities, grievances and difficulties faced by the taxpayers. However they can take up the issues appropriately at higher level only if their performance is measured by the taxpayer.

It’s irritating and painful for the taxpayer when their queries and issues remain unanswered after the same is addressed to the officer or helpdesk. Let all the components of GST contribute towards the development of Nation and be the part of Nation building.

About Author

Name: Purvi Shah

purvi shah

Author is CA, Currently associated with SSRPN & Co.

Disclaimer: Author of this write up intends to impart the knowledge of the amendment made by the Government regulatory. And step taken to ease the compliance. Author is nowhere liable for any damage or indirectly and it is advisable to the viewers to consult their professional expertise to seek the advice.       

compliance rating

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