What is the real deal & impact of GST?
GST key point & its impact affecting everyday Malaysians.

GST Cartoons are Not Helping much...

GST cartoons & billboards are not helping much…

GST Key Facts

  • Starting Apr 1, 2015
  • GST is also known as VAT (Value Added Tax) in many countries
  • Malaysia last Asian country to implement VAT
  • GST calculated on final retail price different from Sales & Service Tax (SST) which takes into account the initial price of goods
  • All business sales turnover > RM 500,000 must register

GST Impact

  • Expected to raise RM23.2b revenue for Malaysian govt (VS SST RM13.8b; GST exempted RM3.8b)
  • Customs more diversified collection base
  • Consumer face inflationary costs
  • Economic slowdown 6-12mths expected
  • Businesses must submit 1mth after taxable period. Refund within 14d (online) or 18d (manual submission)

Tax Categories

  • Standard rated: Taxable goods & services subjected to standard rate.
  • Zero rated: Taxable goods & services subject to zero rate. Not liable to GST at output stage. Business can claim back input tax.
  • Exempt rated: Non taxable goods & services not subject to GST when supplied to consumer. However, GST paid by business cannot be claimed back.

Significant Changes

GST Payable (previously no SST)

  • RON97 (excluded: RON95, diesel, LPG)
  • Utilities: Electricity (above 300units only)
  • Bank legal fees (including MEPS RM1 withdrawal)
  • Medical coverage, Critical illness insurance rider & insurance charges
  • Standalone medical insurance & Personal Accident (P.A.) insurance coverage
  • RM50 credit card government tax removed (yay!). Annual fees (if any) subject to GST.
  • Books (except dictionaries, encyclopedias, newspapers, texts, reference & religious books)
  • e-Books from local e-book suppliers (e.g. MPHonline)
  • Tuition Center Students’ Fees
  • Beauty Services (except at duty-free airport)
  • Commercial property purchase
  • Property maintenance fees
  • Gold purchase

GST Payable for GST Registrant Only (Previously no SST)

  • Rental income
  • Sale of commercial property
  • Sale of gold

More Info

  • List of drugs/medication charged GST: gst.customs.gov.my
    Note: Thanks to Meich for sharing the drugs list!