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

Which statement correctly describes the effect of the provisions on GST compliance rating in the CGST Act, 2017?

Every registered person may be given a GST compliance rating score by the Government, based on the person's record of compliance with the Act. The score can be updated periodically and placed in the public domain as prescribed, so it is neither fixed nor confidential.

  1. AEvery registered person may be assigned a compliance rating score by the Government based on the record of compliance with the ActCorrect
  2. BOnly persons whose turnover exceeds a fixed limit can ever be assigned a compliance rating score
  3. CA compliance rating score is kept confidential and can never be placed in the public domain
  4. DThe rating score is fixed once at registration and cannot be updated afterwards

Explanation

The Act provides that every registered person may be assigned a compliance rating score by the Government based on the record of compliance. The score may be updated at periodic intervals and placed in the public domain in the prescribed manner, so the options saying it is confidential or fixed are wrong. No turnover threshold appears in the provision.

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