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CS Executive · Tax Laws and Practice · Basics of Goods and Services Tax

Which of the following statements about the compliance rating provision in Section 149 of the CGST Act, 2017 is correct?

The Act only provides that the score may be determined on parameters as may be prescribed. It does not list the parameters itself, does not make rating compulsory within a deadline, and is not limited to composition taxpayers.

  1. AIt applies to every registered person as a compulsory rating that must be assigned within thirty days of registration
  2. BThe score may be assigned and the parameters are those that may be prescribed, so the Act itself does not fix the parametersCorrect
  3. CThe Act itself lists the exact numerical parameters used to compute the score
  4. DThe score is assigned only to persons who have opted for the composition levy

Explanation

Section 149(2) leaves the parameters to be prescribed, so the statute does not list them. Section 149(1) uses 'may be assigned' for every registered person, not only composition dealers, and no thirty-day deadline appears. Hence only the second option is correct.

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