Good and services tax (gst)

Good And Services Tax (GST)By Loh Boon How (Chartered Accountant)

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What is GST?•GST is a multilayer tax imposed from the

manufacturer, wholesale until retailer,

•The ultimate consumer will be born such a tax. Therefore, GST will be based on consumption,

•GST will be replace the Sales and Service Tax (SST).

B. H. Loh & Associates

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What is the GST mechanism?

Wholesaler

Retailer Consumer

RM100

RM150

RM200

Output tax : RM9

Input tax : RM6

Input tax : RM9

Output tax : RM12

Net tax : RM3

Net tax : RM3


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What are the products and services are liable to GST?1) Standard supplyGenerally, this category is almost every product and services that provided, including the import product and services,

such as: computer, table, courier services, legal services and so on.


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What are the products and services are liable to GST?2) Zero rate supplyZero rate supply that mean such products and services are no GST imposed, these are mainly the basic living material that consumed by everyone and considered an essential item.

E.g: basic groceries such as rice, flour, sugar and cooking oil.


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What are the products and services are liable to GST?3) Exempted supply This category is almost similar to zero rate supply, where no GST are imposed to an ultimate consumer. This supply contains: public transportation, financial services, healthcare services and private education services.

E.g: Education, public transportation and healthcare services.


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Why the GST has been imposed?1) Reduces business costs

2) Improves compliance

3) Reduces bureaucracy

4) Provides fairness

5) Ensure transparency


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Who are liable to register?1. Mandatory registration – Any person

whose taxable turnover has exceeded the prescribed threshold of RM500,000,

2. Voluntary registration – Any person whose taxable turnover below that the prescribed threshold and subject to Director General of Customs approval.


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When to register?•Effective date of registration will be on

the 1st April 2015,

•The tax payer are encourage to registered before implementation of GST which is 3 months before the 1st April 2015, and

•The Customs will open for registration start from 1 Jun 2014.


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How to register?•The tax person could log in to the web-

site of www.gst.customs.gov.my,

•Normal registration (GST-01), application for group / JV registration (GST-02) or group member / Venturer registration (GST-03).

•The submission through on-line, physical submission to Customs Office nearby or by post.


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Where to register?B. H. Loh & AssociatesAddress :No. 1-3-15, Goldhill Complex, Tingkat Paya Terubong 1,11060 Penang.H/P No. : 016-4893382Email : [email protected] / facebook : bhloh.com.my


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Good and services tax (gst)