The ratings will be made public on the GST Network (GSTN) website as tax authorities seek to build peer pressure among companies to ensure compliance, further
reported the financial daily.
The rules that govern the new indirect tax regime require the matching of invoices for claiming input tax credit. For example, a manufacturer procuring goods from a supplier will not be able to claim credit for the tax paid until the seller uploads the invoices and the claims of the manufacturer and supplier are matched.
Also Read: Five things to know about GST
This means that in case two suppliers offer the same price to the manufacturer, the company may opt for the one that has a better compliance rating.
For this reason, many big manufacturers are working with their suppliers to train them for the transition to the GST regime.
GST is one of the most ambitious tax reforms that India has undertaken since Independence. It will subsume a host of indirect taxes being levied by the central and the state governments, including excise duty, service tax, value-added tax, entertainment tax, luxury tax and entry tax. Under GST, the entire system of tax return filing, invoice uploading and tax payment will be online through the GSTN—the information technology backbone of GST.
Also Read: All you need to know about how GST's IT infrastructure backbone works
GSTN is preparing to handle more than 3 billion invoices a month from an estimated 8 million taxpayers.
However, former finance minister P Chidambaram, in an
interview to The Indian Express said, to push back the date to October 1 for GST's roll-out. "The proposed date for the roll-out is July 1. The bigger guys can employ talent and skills to quickly get on to GST. Businesses in the tier II and tier III towns who only have a local accountant to handle their accounts and are not yet completely familiar with electronic filing, its a huge burden on them," he futher added.
 "GST")