What are the Disadvantages of this Rating Scheme

Businesses will need to be compliant in order to remain competitive. This may prove to be a burden especially to the small businesses who do not have the resources to be fully compliant; at least in the initial days. GST is a completely new tax regime and businesses will inevitably be prone to errors. Errors, delays and non-compliance will affect the vendor’s rating, and therefore the business may suffer. On the other hand, compliant vendors will be at an advantage as they will be easily distinguished from their competitors. This will also prove beneficial to the large players who have more resources at their disposal.