Skip to content

Tax Laws and Practice · Procedural Compliance under GST

GST Compliance Rating under Section 149 of the CGST Act

Updated 11 October 2026 · Fact-checked

GST compliance rating is a score the Government may assign to a registered person under section 149 of the CGST Act, 2017. It is based on the person's record of compliance, determined on prescribed parameters, updated at periodic intervals, intimated to the person and placed in the public domain as prescribed.

Understand GST Compliance Rating

Section 149 is a short provision. It lets the Government measure how well a registered person follows the GST law and show that measure as a compliance rating score.

Start with who is covered. The section says every registered person may be assigned a score. The word is "may", not "shall". So the Government has the power to assign scores, but the section does not force it to rate everyone.

Next, the basis. The score rests on the person's record of compliance with the provisions of the Act. The parameters are not fixed in the section. They are such as may be prescribed, that is, set by the rules.

Finally, the life of the score. It may be updated at periodic intervals. It may be intimated to the registered person. It may also be placed in the public domain in the prescribed manner. This means buyers, suppliers and others can see how compliant a person is.

The idea is simple. A visible rating gives a person a reason to file and pay on time, and helps others judge whom to trade with. Remember that section 149 gives the framework only. Parameters and manner of publication sit in the rules.

Key rules to remember

Who may be rated
Every registered person may be assigned a GST compliance rating score by the Government (section 149(1))
Basis is the person's record of compliance with the Act. The word is 'may', so it is an enabling power.
Parameters
Score may be determined on such parameters as may be prescribed (section 149(2))
The Act does not list the parameters. Do not invent them; say they are prescribed.
Updating, intimation and publication
Score may be updated at periodic intervals, intimated to the registered person and placed in the public domain in the prescribed manner (section 149(3))
Three actions: update, intimate, publish.

How to solve GST Compliance Rating questions

Use this method for any question on compliance rating, whether it is a short note, a statement test or a small case.

  1. 1Name the provision: section 149 of the CGST Act, 2017, goods and services tax compliance rating.
  2. 2State who may be rated: every registered person, by the Government, on the basis of record of compliance with the Act.
  3. 3State how the score is determined: on parameters as may be prescribed, not fixed in the section itself.
  4. 4State what happens to the score: it may be updated at periodic intervals, intimated to the registered person and placed in the public domain in the prescribed manner.
  5. 5Apply to the facts. Check whether the person is registered and whether the question asks about the power, the basis or the publication.
  6. 6Close with a clear conclusion, using 'may' where the section says 'may'.

Quickest way: Three-part recall of section 149

When to use it: Use it for short-note or true/false style questions when time is limited.

  1. Part 1, Who and what: every registered person, a score, assigned by the Government.
  2. Part 2, On what basis: compliance record, parameters prescribed.
  3. Part 3, After assigning: update periodically, intimate to the person, place in the public domain.
  4. Write each part in one or two sentences and end with the conclusion.

Common mistakes in GST Compliance Rating

  • Writing that every registered person must be given a rating.

    Students read 'every registered person' and miss the word 'may'.

    Fix: Write that every registered person may be assigned a score. It is an enabling power of the Government.

  • Listing parameters such as return filing or payment timeliness as if the Act names them.

    Students guess what a rating should include.

    Fix: Say the parameters are such as may be prescribed. Section 149 does not list them.

  • Saying the score is kept confidential.

    Students confuse it with private assessment records.

    Fix: Section 149(3) says the score may be placed in the public domain in the prescribed manner, and also intimated to the person.

  • Confusing the rating with a GST practitioner's role or with exemption powers.

    Sections 48, 11 and 149 appear in the same chapter material and are all short.

    Fix: Keep apart: section 149 is rating; section 48 is GST practitioners; section 11 is power to exempt.

  • Forgetting that the score may be updated from time to time.

    Students treat it as a one-time grade.

    Fix: Mention that it may be updated at periodic intervals.

Worked examples

Example 1

Explain the provisions of the CGST Act, 2017 relating to goods and services tax compliance rating.

Show the solution
  1. Provision: section 149 of the CGST Act, 2017.
  2. Under section 149(1), every registered person may be assigned a compliance rating score by the Government, based on his record of compliance with the provisions of the Act.
  3. Under section 149(2), the score may be determined on such parameters as may be prescribed.
  4. Under section 149(3), the score may be updated at periodic intervals and intimated to the registered person. It may also be placed in the public domain in the prescribed manner.

Answer: A registered person's GST compliance rating is a score the Government may assign on the basis of his compliance record, using prescribed parameters. It may be updated periodically, intimated to him and published in the prescribed manner.

Example 2

Mehta Textiles Ltd, a registered person, learns that the Government has assigned it a compliance rating score and has published it. The company objects that a score cannot be made public. Advise.

Show the solution
  1. Provision: section 149 of the CGST Act, 2017.
  2. Mehta Textiles is a registered person, so the Government may assign it a compliance rating score based on its record of compliance (section 149(1)).
  3. Section 149(3) says the score may be updated at periodic intervals and intimated to the registered person, and also placed in the public domain in the prescribed manner.
  4. So publication is permitted by the Act. The only requirement is that it follows the manner prescribed.

Answer: The objection fails. Section 149(3) allows the score to be placed in the public domain. The company can check only that the prescribed manner was followed.

Exam tips

  • Learn the three sub-sections as three ideas: who is rated, on what parameters, and what happens to the score.
  • Use the Act's words 'may' and 'as may be prescribed'. Examiners look for them.
  • Do not list parameters or rule details you are not sure of. Say they are prescribed.
  • This is a short topic, so expect a short note or a statement to be marked true or false. Keep the answer to a few precise lines ending in a conclusion.

Practice questions from Procedural Compliance under GST

GST Compliance Rating in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

GST Compliance Rating: frequently asked questions

What is GST compliance rating under section 149?

It is a score that the Government may assign to a registered person based on his record of compliance with the CGST Act. The score is determined on prescribed parameters.

Is every registered person given a compliance rating?

Section 149(1) says every registered person may be assigned a score. The word 'may' makes it an enabling power, not a compulsory duty.

Will the GST compliance rating be public?

Yes, it may be. Section 149(3) allows the score to be placed in the public domain in the prescribed manner, apart from being intimated to the registered person.

Does section 149 list the rating parameters?

No. It says the score may be determined on such parameters as may be prescribed. You should not name specific parameters unless the question supplies them.