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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Overview of Goods and Services Tax

Which of the following correctly describes the nature of the compliance rating provision in Section 149 of the CGST Act, 2017?

Section 149 is an enabling provision. It says a score may be assigned to a registered person based on the record of compliance with the Act, determined by prescribed parameters. It neither levies a fee, nor cancels registration, nor grants automatic refunds.

  1. AIt is a charging provision that levies a fee based on the score
  2. BIt is an enabling provision under which a score may be assigned based on record of compliance with the ActCorrect
  3. CIt is a penal provision that cancels registration on a low score
  4. DIt is a provision granting automatic refund to persons with a high score

Explanation

Section 149 uses the word 'may' throughout: a score may be assigned, determined, and updated. It links the score to the record of compliance with the Act but does not levy a fee, cancel registration or grant refunds.

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