Pursuant to the sixth amendment to the Goods and Services Tax Act, the rate of tourism sector GST and general sector GST will increase to 16% (sixteen percent) and 8% (eight percent), respectively, from 1 January 2023. To this effect, please be informed that GST must be charged at the new rates if the “time of supply” of a transaction occurs on or after 1 January 2023.
Please also be advised to take necessary action to bring any system changes beforehand that may be required to charge GST at the new rates, and to have a ready arrangement to display the prices of goods and services inclusive of the new rates.
Cut-off times
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 is 12% (twelve percent) and 6% (six percent) for tourism sector and general sector, respectively, and the rate of GST applicable to the value of supplies made on or after 00:00 hours on 1 January 2023 is 16% (sixteen percent) and 8% (eight percent) for tourism sector and general sector, respectively. Registered persons other than those stated above are required to apply the rate of GST of 16% (sixteen percent) and 8% (eight percent) for tourism sector and general sector, respectively, to the value of supplies made from the time of opening their business on 1 January 2023.
Asma Shafeeu
Deputy Commissioner General of Taxation
