Business

Proposed changes to GST Act

The Government is proposing tightening the goods and services tax (GST) collection process in the sale of goods commonly used in fraud schemes, such as mobile phones and memory cards.

Under a proposed amendment to the law, GST-registered sellers will no longer be allowed to charge GST on the sale of these goods to GST-registered customers, the Ministry of Finance (MOF) said.

Instead, these customers will account for the GST chargeable by dealing directly with the Comptroller of GST, which means the registered customers would report the GST amount due in their GST return forms on behalf of the registered suppliers.

This will deter fraud schemes where the seller absconds after collecting the GST while businesses down the supply chain continue to claim input tax, which is GST incurred on business purchases and expenses.

MOF is seeking feedback on this and five other proposed changes aimed at easing business compliance, clarifying existing legislation and improving tax administration. -THE STRAITS TIMES

FOR MORE, READ THE STRAITS TIMES TODAY

MINISTRY OF FINANCE (MOF)GSTsales