What is a GST compliance rating? | GST compliant software
It is a rating provided by GSTN to each business on this basis of his behavior on the portal. It is based on many factors which include your discipline in meeting the deadlines set by GSTN, furnishing minute details of invoice for credit utilized by you, payment of taxes etc and much more. To sum up whichever compliances are expected by the GSTN from you of them.
How many are you fulfilling?
The beauty of this rating is that even smallest businessman can get the highest rating, as well as a bigger business house, may get a lower rating. All depends on your dealings are done on GSTN portal.
One of the biggest reason of the introduction of GST compliance rating was to safeguard the businessmen from fraudulent practices. As your rating is visible to all the parties you are dealing with it would warn them whenever your regularity is disturbed. It would work both ways. You too would get a warning on reducing the rating of your vendors.
There is a fear among businessmen about maintenance of this rating. And that fear is that only business with enough resources can maintain his rating but he is not true. Everyone can maintain it. Here are some tips to maintain your rating to the highest.
Follow the Strict Discipline:
You should never miss any deadline of GSTN portal, you should be extra vigilant about it. For example, the first deadline comes on every 10th of the month to upload your GSRT-1. This is most vital. After that the 15th and then the 20th of the same month. These should be never missed.
To resolve this issue you can depute a dedicated person for this as you may not get time every time every month on these specific dates.
Proper Invoice matching:
This is another area which can reduce your rating. You should fill all details of your invoices which you have to upload in GSRT-1. The amount figure in invoice should exact match of all your invoices, All inventory details should be perfectly entered. Mismatch of invoices would decrease your rating.
Don’t deal with lower rating Dealers:
Dealers who miss their deadlines would eventually decrease your rating too. As they would not file their taxes on time then your claim for input would also disrupt and it would decrease your rating. As it is clear in GST that you would get your claim only when your seller has paid tax if he misses then your claims would also go false, which would decrease your rating.
Use proper GST compliant software:
This could be your weakest link. GST compliant software is a must. You should opt for that software who can do the matching for you, who can help you prepare error-free returns for you. Even if you make errors it should be able to rectify them before final submission. It should assist you in paying your taxes too.
GSTN portal has one more link which is of GSP, i.e. GST Suvidha Provider. Initially GSTN portal would give you a utility to validate your data but later on, you would need a GSP would filter your data before sending it to GSTN portal. So your application software (ASP) should be well harmonized with your GSP. It should seamlessly connect with GSTN portal.
Tally is one such software which is fully GST compliant as well as Tally solutions are GSP. So if your application software is Tally then being GSP you can seamlessly get connected with GSTN portal.
Another reason one should go for Tally is that it’s trained manpower can be found easily.