I involved in business supplying air-conditioners to dealer in Kuala Lumpur whereby we have entered into a contract for 12 years made on 1-6-2012 with review opportunity on the contract sum every 4 years.
Recently I heard from a tax consultant that during the transitional period for contract entered into prior to 1st April 2015, it is not subjected to GST. Is it true?
Pursuant to Section 187(2) of the GST Act 2014, if the review is to be made every 4 years i.e on 1-6-2016, supplies made from 1-6-2012 until 31-5-2016 will be zero-rated (0%) and supplies made from 1-6-2016 onwards will be subjected to GST at a standard-rate of 6%.
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