What are the Benefits that You Can Enjoy
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*Some of the benefits that compliant vendors may be able to enjoy include:
*Get refunds immediately
*Buyers can get input tax credit immediately
*Attract more business
*Reduce chances of audit by the tax authorities.
*A low GST rating will attract higher scrutiny from the department.
*Enjoy better reputation
How will Businesses be Benefited by Becoming GST compliant?
The easiest way to understand this is through an example. Ajay requires office stationery. He has shortlisted 2 sellers – ABC & XYZ.
ABC has a rating of 9 whereas XYZ’s rating is 6. Ajay hears from his good friend Vijay that the company XYZ does not file its GST returns on time resulting in input credit being blocked, while the company ABC is well rated and highly compliant.
Based on his friend’s suggestions and the vendor’s ratings, Ajay places an order with the company ABC.
Effect on buyer:
Buyers will look for sellers with higher rating which will ensure they can avail input tax credit faster.
Effect on sellers:
Sellers with a higher rating will attract more customers. Thus, the GST rating will bring in a healthy competition between businesses. A prospective client will enquire about the compliance ratings of suppliers before entering deals.
