GST Rate Changes Fact Sheet
The Sixth Amendment to the Goods and Services Tax Act has brought changes to the GST rates in both the General GST (GGST) sectors and Tourism GST (TGST) sector effective from 1 January 2023. This fact sheet tells you the changes to the GST rates that will come into effect from 1 January 2023 onwards and briefly explains how the rate changes apply to different scenarios.
From 1st January 2023 onwards, GST rates will be as follows:
General Sector GST 8%
Tourism Sector GST 16%
The “time of supply” determines the date on which a good or service is supplied for the purpose of accounting for GST, and therefore the GST rate applicable to that supply whenever there is a rate change. GST must be charged at the new rates if the “time of supply” of a transaction
occurs on or after 1 January 2023. In general, the time of supply is the date on which the tax invoice for a supply is raised or the date on which payment for that supply is received, whichever comes first. For the general and specific rules on time of supply, you may refer to our Guide to Time of Supply.
It is to be noted that the prices of goods and services must be displayed inclusive of the new GST rates from 1 January 2023, and, it is important that all businesses proceed with the preparations for bringing the required changes to Point-of-Sale (POS) systems, accounting systems, billing/invoicing systems, reservation systems, websites, etc, in order to be able to reflect the changes promptly as required.
Businesses like cafes and restaurants, etc. which are not run on a 24-hour basis can apply the new GST rates upon the time of opening of their business on the 1st of January 2023. Others must apply the new rates from 00:00 hours of 1 January 2023.
Source: gov.mv
