IRC to automate GST law

Business

THE Internal Revenue Commission will be automating the process of collecting the goods and service tax (GST) withheld through registered coffee exporters from suppliers.
Commissioner-general Betty Palaso said this was to ease the burden on the administration of the GST.
Palaso said the GST Act allowed GST-registered persons to withhold the tax at 10 per cent and remit it to the IRC.
“The seller or coffee grower in this case is required to be registered with a taxpayer identification number (TIN) to lodge a monthly GST return where the GST withheld is declared as output tax,” Palaso said.
“Although the process is now automated, the growers and suppliers filing GST returns to account for the S65A will still be required to attach original tax invoices and suppliers listing with their monthly returns.”
The IRC will be on a campaign drive in Goroka and Mt Hagen to educate coffee exporters, buyers and sellers in the Eastern Highlands and Western Highlands on the tax.
“The purpose of the awareness is to inform the coffee growers, buyers and exporters that the IRC has now automated the application of Section 65A and will go live starting 1 January 2017,” Palaso said.
“This means persons withholding GST (exporters) and persons declaring the GST being withheld (suppliers) will be required to complete tax forms.”

Leave a Reply