Black Listing of Taxable Person under GST
The supposed to be revolutionary Goods and Services Tax law will introduce a system of compliance rating mechanism. Every taxable person will be awarded a score based on their prompt filing, timely payment, other discrepancies and parameters as prescribed. Bad compliance scores can trigger blacklisting of the assessee and blocking of their respective tax credits.
This new concept demands every taxable entity to be vigilant and aware of all the compliance’s, blacklisted defaulters will not be able to claim any credit since they will not be able to declare the details of any outward supply.
Defaulters of even a single event should also be flagged and be published in public domain so as to alert the buyers thereby discouraging them to transact with a defaulter assessee.
The Compliance Rating Mechanism shall be applicable to all registered dealers including those who have opted for composition scheme.
How to maintain a good compliance rating ?
Prompt Filling of eReturn
Prompt payment of tax collected
Prompt payments in lieu of reversed Input Tax Credit
Avoid any Discrepancies
Corporate Law Practitioner | Founder & CEO, Tradeviser.in
Law Graduate with 10+ years of experience in Compliance, Taxation & Company Law. Founder of Tradeviser.in, working to simplify compliance and help businesses grow with confidence.