The Sixth Amendment to the Goods and Services Tax Act has brought changes to the GST rates of the General GST (GGST) sector to 8% and Tourism GST (TGST) sector to 16% effective from 1st January 2023.
When determining the cut-off period which arises due to the rate changed, MIRA has informed that if a registered person supplies goods and services on a 24-hour basis, the rate of GST applicable to the value of supplies made before 00:00 hours on 1 January 2023 will be 12% for TGST and 6% for GGST. And the rate of GST applicable to the value of supplies made on or after 00:00 hours on 1 January 2023 will be 16% for TGST and 8% GGST. Other businesses, which are not run on a 24-hour basis can apply the new GST rates upon the time of opening of their business on 1st January 2023.
Due to this change, MIRA has advised businesses to proceed with the preparations for bringing the required changes to their systems and to change the prices of goods and services displayed accordingly in order to be able to reflect the changes promptly as required. If any business requires additional information regarding the GST rate change, MIRA has requested to contact them on their hotline number 1415 or via email to [email protected].