How can GST encourage compliance among small and medium enterprises (SMEs)

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The Goods and Services Tax (GST) is a landmark decision in the history of the Indian Tax System. For the first time since its inception, our country has a unified and singular way through which citizens give revenue to the Government. People can now get vital details through a single search GST number by company name.

Although the implementation of GST has left a lot to be desired and there are a lot of disadvantages of GST, there’s one thing that even the most staunch critics of GST cannot deny. In the long run, with efficient running, GST is the right way to go.

One of the most important reasons that this Government has been pushing GST is their argument that the Goods and Services Tax incentivizes compliance. To those unfamiliar with the matter compliance rating, it is a means through which the Government keeps track of how well or poorly companies comply with the GST provisions.

Under the Central Goods and Services Act, 2017, taxpayers each now have a compliance rating. All new taxpayers start on an equal rating, but the future of the score depends upon you.

What is a GST compliance rating made up of?

A GST compliance rating will be made up of the mentioned name of the taxpayer and some of his identification details. The Goods and Services Tax Identification Number (GSTIN) will be available for public access on the GST website.

The Government claims that the entire system has been set up so that businesses are incentivized to comply with the provisions effectively. Whether this happens through a good compliance rating or through reduced headaches is a tough question.

How can I search GST number by company name?

A GSTIN is a 15 digit unique identification number. This is a PAN-based number allotted to every business or person that is registered under the Goods and Services Tax. A single person can have more than one GSTIN. However, unlike the previous system of multiple registration numbers for different taxes like Excise Tax, Service Tax and Value Added tax, a person needs only a single registration number under GST.

A company’s Goods and Services Tax number is information that is available to the public. This can be viewed as an advantage of GST or a disadvantage of GST. Knowing how to search GST number by company name is an essential task that every business that deals with GST registered taxpayers needs to carry out for authenticity.

Not every GST number filed in an invoice can be trusted. Knowing how to search GST number by company name helps eliminate the doubt and difficulty a non-diligent business owner might face in the future. Although this is not a massive disadvantage of GST, it definitely makes the process less streamlined.

In order to search the GST number of a company by name, all one needs is the initial details of the organization or business. Several online free tools will then take in the input and give you a vast array of recommendations. The only disadvantage of GST verification via name is that these tools are not very intuitive. Thus if you do not have the perfect company name and details, then there’s a good chance that no details will be returned.

A foolproof way of getting a company’s GST number is through their Personal Account Number or PAN. If the vendor’s PAN matched the 4th to 9th digits on their GST Identification Number, then there’s an excellent chance that the details are legitimate.

Advantages of having a high compliance rating

There are several reasons why, in spite of the disadvantages of GST, higher compliance ratings are excellent. We’ve listed three below for you.

Gives you a chance to attract more business

When potential customers search GST number by company name, all the pertinent details of your tax-paying history become apparent to them. In case you have a bad track record or have not completed your GST registration people will hesitate and think twice before going into business with your company. This is because the GST law required invoice matching for Input Tax Credit. This makes it a disadvantage of GST and businesses will only sign with manufacturers and dealers who have a good track record.

Thus, through this GST law, you are incentivized to file for and pay your taxes regularly. Hence, compliance is significantly increased.

You get preferential treatment if you have a good credit score

If your business has an attractive compliance rating, then you can be assured that you will be higher up in terms of processing priority. Refund claims, for example, are processed on a merit basis. This means that the taxpayers who have higher ratings can expect to have a better experience when it comes to filing and claiming refunds such as an Input Tax Credit.

Decreased monitoring when it comes to financial transactions

If you have a poor track record of paying your taxes regularly, then certain transactions will warrant more scrutiny than others. If you have a compliance rating of less than 5, then significantly more of your purchases will be subjected to scrutiny. By this, more resources will be spent on you, and the bill will eventually come back to your business. This is a considerable disadvantage of GST, especially if you’re in a market where ITC refunds need to be claimed regularly and successfully.


As we mentioned above, there are several complimenting and compounding reasons as to why GST will, in the long run, be a successful project. However, like any successful project, there needs to be strong grassroots support for successful implementation. Due to select advantages such as search GST number by company name to quick and seamless processing, GST looks like the perfect tax for ease of business.

Although the disadvantages of GST are real and painful if you look at the big picture, GST is significantly increasing compliance. The heartwarming thing is that we can also see this in Tier 2 and Tier 3 cities. In these cities, being tech-savvy hasn’t ever been the norm. Yet businesses are still willing to adjust their ways of accounting.

Jaylin: SEO Expert of Leelija Web Solutions. I am a content manager, and the author of and a full time blogger. Favourite things include my camera, travelling, caring my fitness, food and my fashion. Email id:

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