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

Which statement about how the GST compliance rating score is determined is correct under section 149 of the CGST Act, 2017?

The compliance rating score may be determined on the basis of parameters that are prescribed. The Act leaves the detailed parameters to be prescribed instead of fixing them in the section. It does not rely on self-assessment or on the amount of tax paid alone.

  1. AIt is determined on the basis of such parameters as may be prescribedCorrect
  2. BIt is fixed solely by the taxpayer through self-assessment in the annual return
  3. CIt is determined by the GST Council through a case-by-case order for each taxpayer
  4. DIt is determined only on the basis of the tax paid during the preceding financial year

Explanation

Section 149(2) says the score may be determined on the basis of such parameters as may be prescribed. Self-assessment, a Council order for each taxpayer, or a single factor such as the tax paid are not provided for in the section.

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