Amendment to GST Act published to impose tax on telecommunication services

The eleventh amendment bill to the Goods and Services Tax Act was published in the Government Gazette yesterday allowing taxation on telecommunication services.

The amendment does not mention the percentage to be imposed but states that GST on telecommunication services will come into effect starting 1 May 2014.

Amendment to Article 109 of the GST Act states that the price of a good or service displayed to customers shall include the amount of tax chargeable for such good or service.

It also states that the service charge displayed shall be in a manner in which customers can compute the total amount they must pay to the supplier.

Introduction of Goods and Services Tax on telecommunication services comes as a move by the new government to increase revenue.