Most asked questions from the Government on GST.

Question 28

What is the purpose of Compliance rating mechanism?

Ans. As per Section 149 of the CGST/SGST Act, every registered person shall be assigned a compliance rating

based on the record of compliance in respect of specified parameters.

Such ratings shall also be placed in the public domain.

A prospective client will be able to see the compliance ratings of suppliers and take a decision

States/ Union territory would be called the State GST (SGST)/ UTGST.

as to whether to deal with a particular supplier or not. This will create healthy competition amongst taxable persons.