“Section 23 Credit Notes And Debit Notes” is read as follows:-
Section 23 Where any low-value goods are sold by any registered seller which involves the issuance and receipt of credit notes or debit notes under the prescribed circumstances and conditions, the registered seller shall make a deduction or addition of sales tax in his returns accordingly and the credit notes and debit notes shall contain the prescribed particulars.
The proposed amendment to Section 23 of the Sales Tax Act 2018 involves renumbering the existing provision as subsection (1) and introducing a new subsection (2).
Subsection (1) outlines the general requirement for registered sellers dealing with low-value goods to issue credit or debit notes under specified circumstances, with corresponding adjustments to sales tax in their returns.
The addition of subsection (2) grants discretionary power to the Director General, allowing them, upon a written request from a registered manufacturer, to approve the exclusion of one or more prescribed particulars from being included on a credit note or debit note, subject to imposed conditions.
This amendment provides a degree of flexibility, enabling the Director General to consider requests from registered manufacturers for certain particulars to be excluded from credit notes or debit notes, potentially streamlining administrative processes.
The tax impact is associated with the potential adjustments to the information required on credit and debit notes, providing a tailored approach based on specific circumstances and conditions determined by the Director General.
