- GST is revised to be at 0% from 1 June 2018. The 6 % charge will remain until 31 May 2018.
- All GST paid until 31 May 2018 can be claimed back as that is your Input Tax.
- 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.
- What GST Code to use? As of now still use SR ( Standard Rate ) but only that the Standard Rate is 0 %.
- All business must continue to issue Tax Invoices at 0 %.
- Supplier’s Invoices dated up to 31 May 2018 but received in June 2018 and beyond, GST Input Tax is Claimable.
- 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.
- 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.
- 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.)
