RETENTION SUM BEFORE GST PERIOD USING TAX CODE OS NEED TO REPORT AT GST-03 OR NOT?
Hi I have issue a tax invoice that have combination of release of retention before GST period and during GST period.
For the retention before GST period i am using tax code OS. Do i need to report this figure in column 15 out of scope supply there?
Please go through the DG’s Decision 1/2018 and 3/2018 below :
Late on Friday evening (21 December 2018), the RMCD released an amendment to its previously published Director General’s (DG) Decision 1/2018 and DG’s Decision 3/2018.
In DG Decision 1/2018, RMCD had expressed the view that GST Registered taxpayers would not be allowed to issue tax invoices with GST after 1 September 2018. This had posed significant practical issues for businesses who had yet to issue tax invoices for services rendered prior 1 June 2018 when GST was still 6%. There was also a cost attached to this interpretation as the recipient would not be able to claim an input tax credit without a valid tax invoice DG Decision 1/2018 was also unclear on the RMCD view as to whether credit notes and debit notes could still be issued. However, as we had highlighted in an earlier edition of Indirect Tax Chat, there was arguably a technical basis for allowing such documents to be issued validly.
DG Decision 3/2018 which dealt specifically with the issue of retention sums (for example on construction contracts), had expressed the view that where a retention sum had not yet been paid on work that had been performed prior to 1 June 2018, the supplier would need to account for and pay GST on this retention sum, even where the amounts had not been received by 29 December 2018 (the due date of the Final GST Return). Similar to DG Decision 1/2018, DG 3/2018 posed significant administrative hurdles as well as a real cost to the parties involved as it
required early accounting of the GST with the inability to recover an input tax credit.
Let say I issue tax invoice to account for output tax for the retention that only release in year 2020 now, do i also need to issue tax invoice for retention workdone during 0% GST period i.e. July & Aug and declare in GST03?