‘Not all guests are welcomed or invited’ – Some surprise you!!!
July 1st 2017 not only meant the beginning of a new month, it marked a milestone in the Indian tax system. With alarm bells ringing all the way for quite sometime, the much anticipated Goods & Services Tax (GST) is finally here – whether you like it or not GST has been on the cards ever since the Budget 2017 was announced and now the game has officially begun. India has welcomed this unexpected guest and businesses are still peeping through half open doors to catch a glimpse of what this visitor can do to them.
The What And Why Of GST Compliance Rating
Rankings and ratings aren’t new to anyone of us. Just imbibing them in the world of taxation is striking. For instance, take performance ratings in the corporate world – Each individual is assessed based on his performance, quality & accuracy of work done etc. and awarded with a rating. This directly impacts his appraisal, promotions, hike etc.
Similarly, for all registered businesses under GST (irrespective of nature/size/turnover) based on their degree of compliance, there is a GST compliance rating score. The parameters deciding this compliance rating would probably be based on accurate tax payments, filing returns on time, adherence to regulations etc. This can turn to be either a boon or a bane – as it is monitored, updated periodically and is publicly visible on the GST Network (GSTN) website too. Not something that you can carelessly dust off and move on as it affects your business in more ways than one :
Better GST Compliance Rating Means Quicker Refunds
- All GST payers are continuously monitored under the GSTN. A stable compliance rating for your business readily allows your demands/needs to be prioritised and processed faster. For example, tax refunds.
- Being in the good books of GSTN makes refund claims successful and quicker too with less scrutiny.
- For Example – If my GST Compliance rating is 8 & my GST refund due is Rs.1 Lakh ; I will immediately get Rs.80,000 ( 1 Lakh * 80% ) as Provisional refund. The balance 20% will be paid after necessary verification / scrutiny. Note : Complete rules regarding this are yet to be notified
Better GST Compliance Rating For Better Sales
- As every business’s GST credits depend on their vendor/supplier’s timely GST payment & filing, GST compliance rating is likely to play a role in vendor selection from now on. Afterall which business wants their GST Compliance activities stuck ?
- In a way GST compliance rating is almost an advertisement of your business. With the rating being updated & available in the public domain, buyers no longer need to fear if they are choosing the “compliant” vendor for their business.
- Being very reliable and transparent, the compliance rating is a sureshot way to attract more customers. Being compliant easily distinguishes you from your competitors and buyers would definitely vouch for sellers with higher rating to avail input tax credit faster
Better GST Compliance Rating Means Vendor-Customer Trust
- A satisfactory compliance rating, no doubt, adds to an organisation’s reputation and credibility. Simultaneously won is the trust factor between vendors and customers. Thanks to GST compliance rating – Super easy to win confidence and spot the trustworthy too
- With promising trust being ticked off the list, you are welcomed for a long-term relationship with all your existing customers. In addition, be convinced of new opportunities too.
With business owners successfully surviving a month of GST regime, the compliance rating is sure to create high stress levels to those who are non-compliant. The ‘rating’ beam balance is here for all to see, with only the parameters yet to be finalised. Your business’ reflects via this compliance rating – no ifs and buts.
Get Set & Triumph Over GST with the right accounting partner.
At Relativity, we provide payroll, taxation, compliance and accounting services that are GST ready. Let GST & compliance rating worries off the hook with ‘The Compliance Experts’ by your side Reach us on [email protected] or 0-93611-41436 to know more about our customised services.