In the revolutionary tax reform i.e. GST, another big initiative taken up to have a sharp look on the working of businesses is Compliance Rating. Unlike old tax structure, GST emerged with altogether new concept of Compliance Rating.


Section 149 deals with Goods and Services Tax compliance rating, which says:

  • Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act.
  • The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed.
  • The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed.

What is compliance Rating

In simple words, credit rating is nothing but the score, a rating is being assigned to the registered taxable person on the basis of their performance of timely GST Return filing and other requisite compliance.

Basis of compliance rating

Following are the basis on which rating is assigned to the registered taxable person:

  • Timely payments of returns
  • Timely payment of taxes
  • Cooperation with GST authorities
  • Various compliances under GST

What is the need of compliance rating

In the new GST regime, there are various compliances i.e. Return filing under GST, payment of taxes etc. To track the performances of the registered taxable person on the basis of how compliant they are, rating are assigned to each concerned person.

For availing provisional refund, a person has to get a minimum rating of 5 out of 10.

Benefits arising out of Compliance rating

  • Better goodwill
  • High chances of getting refund immediately
  • It will attract more business
  • Enjoying better market standing
  • Lesser chances of coming into limelight of GST authorities
  • Buyers will opt for those seller who are carrying high rating
  • Sellers will attract more consumers

How person will get to know about their Rating

Compliance Rating will be made publicly available on GST Network website.


Someone rightly said that ‘the nation is made, when the tax is paid’. To monitor the overall compliance structure, compliance rating appears to be a good initiative under GST regime.