The Finance Ministry has announced the changes to purchase orders due to the change in the GST rate.
As per an amendment to the Goods and Services Tax Act, Goods and Services Tax (GST) rate will be raised from 6 to 8 percent, and the Tourism Goods and Services Tax (T-GST) rate from 12 to 16 percent effective January 1, 2023.
The Finance Ministry had earlier instructed to submit bills of POs prepared through the public accounting system for this year for received goods or services before 2:00 pm on December 31.
According to a circular signed by Finance Minister Ibrahim Ameer, if the bills for purchase orders prepared this year have not been posted in the public accounting system by the 31st of this month, the purchase orders will be carried forward to next year.
The circular said the cost of carried forward purchase orders would be deducted from next year's budget. GST will be calculated on these purchase orders as per the new GST rates.
In this regard, General GST will be calculated at the rate of six percent on invoices issued before January 1, 2023, on POs for received goods and services. TGST will be calculated at the rate of 12 percent.
However, for invoices issued on or after January 1, 2023, for already fulfilled POs, the bills would be subject to general GST calculation at the rate of eight percent and TGST at 16 percent.
