What is GST ?
GST is a consumption tax that is based on the value-added concept which will replace the current sales tax and services tax. GST shall be levied and charged on the taxable supply of goods and services made in the course or furtherance of business in Malaysia by a taxable person. GST is also charged on the importation of goods and services.
A taxable supply is a supply which is standard rated or zero rated. Exempt and out of scope supplies are not taxable supplies. GST is to be levied and charged on the value of the supply.
GST can only be levied and charged if the business is registered under GST. A business is not liable to be registered if its annual turnover of taxable supplies does not reach the prescribed threshold. Therefore, such businesses cannot charge and collect GST on the supply of goods and services made to their customers. Nevertheless, businesses can apply to be registered voluntarily.
A multi-stage tax on domestic consumption, GST is charged on:
GST implementation approach
It is crucial to develop a structured and strategic approach to set it right the first time.
Organisations need to consider these priorities:
- evaluate the readiness of your business – can you operate successfully and efficiently under the GST regime?
- identify the issues that impact your business during the transition to GST
- identify what must be done to get ready for GST
- develop a clear road map to implement GST
- ensure compliance by the GST introduction date
JTA is able to undertake this function on your behalf and our service would include the following:
- Assess your Company’s eligibility for GST registration
- Ascertain the appropriate classifications of your services rendered / goods sold to ensure appropriate application of the relevant GST tariffs i.e. standard rated, zero-rated or exempt supplies.
- Examine the input tax credits on your purchase of goods / services which may be set-off against your GST payable.
- Prepare on your behalf the detailed monthly / quarterly GST return together with the underlying computations for your signature / approval prior to submission to the Royal Malaysian Customs Department.
- Advisory services in relation to any queries or GST related issues that you may have.
GST Training
At JTA we also conduct training for GST. For training courses, we will custom made to your organization’s requirements and budget.