Goods and Services Tax set to have a soft launch on 11th November

With the commencement of the Goods and Services Tax (GST) scheduled for 1st January 2026 the Ministry of Finance (MoF) is undertaking a comprehensive and multi-pronged approach to ensure a smooth and effective rollout.The soft launch on 11th November 2025 will pave the way for the full rollout of GST.

Preparations are first focusing on system readiness, including hardware, software, network connectivity, and system integration across all eight regional offices, in collaboration with GovTech Agency.

Technical teams have been configuring and testing digital infrastructure, revamping network connections, and ensuring interoperability, user accessibility, and robust data security. Simultaneously, the project team is working on core tax functionalities, including registration, return filing, payment, refunds, appeals, and other compliance requirements under GST and BITS.

The first User Acceptance Testing (UAT) for DRC officials has been conducted, with another scheduled for September, and End User Training (EUT) will be conducted for all system users in November and December 2025.

Training and capacity building are also underway. MoF has conducted training of trainers (TOT) for regional focal persons, who will carry out similar sessions in their respective regional offices in September.

To ensure the business community is fully prepared, taxpayer training is planned for October, covering GST and BITS registration, filing procedures, refunds, invoicing, compliance requirements, and the transition from the current sales tax regime. Training materials have been prepared for DRC officials and adapted for different business sectors to ensure relevance and uniform application.

Recruitment of additional manpower on contract has been initiated to support implementation, while capacity-building efforts are being extended to regional revenue and customs officials to ensure institutional readiness. Recognizing the importance of public awareness, MoF has developed a targeted media advocacy and communication plan, using multi-channel outreach, including print, broadcast, and digital platforms to sensitize taxpayers, businesses, and the public on the key features of GST and BITS.

The draft GST Rules and Regulations have been completed and are under review to ensure clarity on the legal and procedural framework. The rules are being designed to be simple, unequivocal, and easy to implement, and are scheduled for review and endorsement by MoF’s Policy and Planning Committee in September.

Under compulsory registration, over 2,200 taxpayers identified by the DRC have already been contacted. Businesses with annual turnover above Nu 5 million (mn) will be automatically registered, and those not yet identified are encouraged to contact their local GST focal persons.

Businesses with turnover above Nu 2.5 mn can voluntarily register. Interim enforcement measures, including an anti-hoarding strategy related to excise tax and support for vehicle dealers through a warehouse operator concept, have also been introduced. MoF is coordinating externally with stakeholders, including the Gelephu Mindfulness City (GMC), to ensure smooth implementation.

Fortnightly reviews of work plans, milestones, and project progress are being conducted at multiple levels to ensure timely implementation.