This ruling is issued pursuant to the authority granted under Section 84 of the Tax Administration Act (Law Number 3/2010) as amended by Law Number 14/2011. Unless otherwise stated, all references to the Act are to the Goods and Services Tax Act (Law Number 10/2011) as amended, and all references to the Regulation are to the Goods and Services Tax Regulation (Regulation Number 2011/R-43) as amended. This ruling is legally binding.

Introduction

1. This ruling amends section 11 of the Regulation.

Ruling

2. Amend section 11 of the Regulation as follows:
Manner in which GST registration threshold shall be determined

(a) The registration threshold of MVR 1,000,000 (one million) specified in Section 51 of the Act shall not apply where a person conducting a taxable activity in the tourism sector, referred to in Section 15 of the Act, conducts a taxable activity in the general sector, referred to in Section 16 of the Act. That is, such person shall be required to register all of his taxable activities in the relevant sector, irrespective of whether or not his annual taxable supplies exceed MVR 1,000,000 (one million).

(b) Where subsection (a) applies to a person registered with the MIRA in accordance with Section 56 of the Act, as of the date of effect of the Twenty-first amendment to the Goods and Services Tax Regulation, that person shall fulfil the requirement in subsection (a) by 1 October 2017.

Date of Effect

3. This ruling shall have effect from the date of its publication in the Government Gazette.