GST Rules on Advance Payments Eased

Amendments have been brought to the GST Regulation to ease GST treatment of advance payments.

The tax ruling issued by MIRA specifies that GST should now be accounted on just the amount received for any advance payment that is received before a tax invoice is issued. Before, when an advance payment is received, GST had to be charged on the total payment instead of just the advance payment.

Additional changes to section 15 of the Goods and Services Tax regulation include the GST treatment of non-refundable deposits and retention money.

Further, a new requirement was added to the circumstances in which input tax cannot be claimed whereby, the input tax cannot be claimed by the taxpayer if the corresponding output tax has not been paid to MIRA.

05 Dec 16