Section 149 of CGST Act: Goods and Services Tax Compliance Rating

Section 149 of the Central Goods and Services Tax Act, 2017 provides the statutory framework for assigning a GST compliance rating score to a registered person on the basis of the person's compliance record.

On this page

Text of Section 149
Meaning and scope
Parameters and publication
Practical position
Related CGST provisions

Text of Section 149 - GST compliance rating

(1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act.

(2) The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed.

(3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed.

Meaning and scope of Section 149

The provision creates an enabling mechanism for the Government to assign a compliance score to a registered person. In GST law, a registered person generally means a person who is registered under section 25 of the CGST Act, subject to the statutory definition and exclusions in the Act.

The expression compliance rating refers to a score linked to the taxpayer's record of complying with GST requirements. Section 149 itself does not fix a numerical score, formula or list of rating factors. Instead, sub-section (2) contemplates parameters to be prescribed, while sub-section (3) contemplates the manner of periodic updating, intimation and placement in the public domain.

How the rating mechanism is intended to work

Section 149 has three elements: assignment of a score based on the registered person's compliance record; determination of that score using prescribed parameters; and periodic updating and communication of the score, including publication in the public domain in the prescribed manner.

Important: Section 149 is an enabling provision. The statutory text should not be read as creating a presently operative universal public rating formula by itself. Any operational scoring mechanism depends on the applicable rules, notifications, prescribed parameters and implementation by the Government.

Practical relevance for GST-registered persons

The policy idea behind a compliance rating is to make a taxpayer's compliance history capable of being reflected through a standardized score. If implemented through prescribed parameters, such a mechanism can encourage timely and accurate compliance and can provide a transparent indicator of compliance history.

Businesses should continue to focus on substantive GST obligations such as correct registration particulars, timely returns, accurate reporting, payment of tax, proper maintenance of records and compliance with notices and other statutory requirements. Section 149 does not replace those obligations.

Official legal source

For the authoritative statutory text and amendments, refer to the India Code database and the Central Board of Indirect Taxes and Customs (CBIC) GST portal. Readers should verify the latest Act, rules, notifications and circulars before acting on a legal or tax issue.

Section 149 appears in Chapter XXI of the CGST Act. The immediately related provisions include Section 146 - Common Portal, Section 147 - Deemed Exports, Section 148 - Special Procedure for Certain Processes, Section 150 - Obligation to Furnish Information Return, Section 151 - Power to Collect Statistics and Section 152 - Bar on Disclosure of Information.

Updated for editorial presentation on 15 September 2026. Legal provisions may be amended; always check the latest official text.