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How will the Rating System work?

How will the Rating System Work

GST Compliance Rating will be based on certain criteria which are yet to be prescribed. However, experts believe that the following factors could play a key role in deciding compliance ratings:

*Timely payment of taxes

*Timely filing of returns

*Timely reconciliations

*Compliance of various other time limits under GST

*Cooperating with the GST authorities

Based on your rating, you and your business will enjoy certain benefits. It has been proposed that refunds to a taxpayer will be made on percentage basis of these ratings.
Let us take an example.

Supposing a taxpayer has a rating of 8. He is eligible to claim a refund of INR 10,000. Based on his compliance rating (which is 8), he will get an instant provisional refund of INR 8,000 when he applies for refund. The balance of INR 2,000 will be paid later after scrutiny.
Similarly, a person with a rating of 6 will get only 60% of refund. Only a person with a minimum of GST rating of 5 on 10 can avail provisional refund.
Note: The final rules regarding this are not yet to be notified.

RATING SYSTEM
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