GST Rating 4.5: 15 MCQs with answers

A · Section 149

Section 149 of the CGST Act, 2017 provides for the GST compliance rating.

A · 0 to 10

The compliance rating is assigned on a scale of 0 to 10, with 10 being the best.

A · To build trust and promote voluntary compliance

The primary objectives include building trust, reducing departmental scrutiny, and increasing voluntary compliance.

D · Higher credibility in the market

A high rating brings higher credibility, priority in refunds, reduced audit chances, etc.

B · False

The system has been introduced in the CGST Act but has not been officially implemented yet.

A · True

One of the benefits listed is preferential treatment in government tenders or procurement.

A · Number of employees in the business

The number of employees is not mentioned as a parameter; the others are explicitly listed.

C · GST Network (GSTN)

The compliance rating is based on automated assessments by the GST Network (GSTN).

C · Lack of transparency in rating criteria

The rating criteria are not publicly disclosed, leading to lack of transparency.

C · Cheriyan & Co had a higher GST compliance rating

Cheriyan & Co had a rating of 9, while Vikas & Co had 5, and the higher rating ensured smoother ITC flow.

C · More frequent audits

A low rating may result in more frequent audits, suspicion from buyers, and delay in refunds.

A · Introduced in the Act but not yet implemented

The system is provided in Section 149 but has not been officially implemented yet.

D · They provide tools to monitor and improve compliance

GSPs offer digital tools and APIs to help businesses automate filings and monitor vendor compliance.

B · To increase the number of GST registrations

Increasing registrations is not mentioned as an objective.

B · The recipient's compliance rating may be lowered

Reversal of ITC due to supplier default may lower the compliance rating of the recipient.