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Initial Guidelines on GST Chances to Zero Percent

By May 23, 2018 No Comments
  1. GST is revised to be at 0% from 1 June 2018. The 6 % charge will remain until 31 May 2018.
  2. All GST paid until 31 May 2018 can be claimed back as that is your Input Tax.
  3. After 31 May all registered businesses must continue to file GST the normal manner until the Government announces otherwise and the GST Account is de-activated.
  4. What GST Code to use? As of now still use SR ( Standard Rate ) but only that the Standard Rate is 0 %.
  5. All business must continue to issue Tax Invoices at 0 %.
  6. Supplier’s Invoices dated up to 31 May 2018 but received in June 2018 and beyond, GST Input Tax is Claimable.
  7. Tax Invoice dated before 1 June 2018 but goods returned after 1 June 2018, a Credit Note will have to be issued and there will be a reduction in Output Tax. When there is a negative Output Tax, get your Tax Agent to call Customs Department as there is no circular yet on how to handle such situations. Still awaiting instructions.
  8. Point Of Sale (POS) system inclusive of GST calculation- Must re-calculate the new Sales Price on the following basis.

Old Price X 100/106 = New Price.

  1. Price must be revised in order to ensure the Seller does not breach “Anti Profiteering Act” a breach of which can result in seller being charged.

By: Mohan Balan (FCCA., CA.)

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