Why GST Compliance Rating is an advantage for tax payers?

What is GST Compliance Rating?

GST Compliance rating is one the most needed initiative taken by Government under GST. Compliance rating is a score card for tax payers under GST. It will provoke tax payers to comply with GST rules and regulations in order to be on good rating scale. It can be termed as a performance indicator for business owners, tax payers etc.

How GST compliance rating works?

As it’s a performance rating businesses so rating would be based on some parameters. The basic parameters would be:

• Timely tax payment
• GST return filing within stipulated date
• Comply with GST rules and regulations
• Co-operating with GST authority
These are some basic parameters to rate the performance of a business. GST compliance rating would help businesses to attract more customers.
GST compliance rating would enhance the impression of a business on its customers as a regular and trust worthy business. This rating will be disclosed publicly to enable businesses to take better and profitable business decisions.

What GST compliance rating signifies about a business?

  • Newly registered tax payers
  • Tax payers filing returns on time and correctly
  • Tax payers maintain all records and documents
  • Tax payers delays return filing
  • Tax payers paying their taxes within specified date

These are some necessary information, which will update on GST portal for all. Tax payers with better compliance rating will get input tax credit refund immediately unlike other tax payers.

Advantages of getting a higher GST compliance rate

The biggest advantage would be getting more customers. Companies or manufacturers will never buy from a seller with a low compliance rating as the risk of late refund of input tax credit increases, which will lead to decrease in sales for the seller. Business reputation will increase with a higher compliance rate.

For a better and profitable business growth, tax payers must go for a better compliance rating.

How to improve compliance rating?

It’s very important to have a good compliance as it will show the status and reputation of a business. If you have low compliance rating then you may lose your customers.

If you have a low rate then you need to take the following steps:

  • Pay your taxes in proper duration with all correct and necessary documents
  • Keep all documents updated need at the time of GST filing
  • Cross check sales & purchase details returns while filing for GST and then submit
  • Comply with all GST rules

Online Invoice:

  • GST enable invoice
  • Triplicate copy of invoice
  • Stock notification while generating Invoice.
  • Partial payment option.
  • Delayed payment notification.
  • Print / Download / e-mail

Stock/ Inventory:

  • Manage Categories/Sub Categories
  • Status of current stock.
  • Stock utilization.
  • Entire product list in one view.
  • Item wise sales and purchase.

Payment Management:

  • Advance and Outstanding management.
  • Receive or Make payment on reference to invoice / party ledger.

Income and expense Management:

  • List and manage your other income.
  • Keep record of your expense i.e salaries, house rent


  • View daily sales/purchase report
  • Detailed Stock Report
  • All TAX Report

User Management:

  • Responsive Interface (performs seamlessly in mobiles & tablets along with PCs)
  • 5 User login (i.e they can share their data with store manager and charted accountant)
  • User can login using his/her username and password.

Leave a Reply

Your email address will not be published. Required fields are marked *