Scenario
Amy: Do you know that GST will be implemented with effective from 1 April 2015?
Ann: Wait, don’t we already have GST in Malaysia? I’ve seen it in some receipts…
Amy: All the essential items such as rice, sugar, flour, cooking oil, and public transport is chargeable with GST, even if you buy a coffee you have to pay for GST as well…
Ann: I am confused as to which GST you are now talking?
Is Amy right?
Mythbusted.
There has been much confusion over Goods and Services Tax (“GST”) which is proposed at the rate of 6% and the existing Government Service Tax at the rate of 6%. Effective 1 April 2015, GST will replace the existing Sales and Services Tax in the conversation mentioned above, in other words, Amy and Ann will have to pay only the 6% GST on standard rated supplies of goods and services.
Certain basic food such as rice, poultry, fish, meat, vegetable, sugar, flour and cooking oil are zero rated supply, while public transportation are exempt supply. On record, the end consumers are not required to pay any GST amount on these supplies.
Visit the link below for more information:-
http://gst.customs.gov.my/en/Pages/default.aspx
(Official Website Malaysia Goods and Services Tax Royal Malaysian Customs Department)
http://gst.customs.gov.my/en/rg/SiteAssets/gst_order/pua_20141013_P.U.%20(A)%20272%20-%20Perintah%20CBP%20(Pembekalan%20Berkadar%20Sifar)%202014.pdf
(Goods and Services Tax (Zero-Rated Supply) Order 2014)
http://gst.customs.gov.my/en/rg/SiteAssets/gst_order/pua_20141013_P.U.%20(A)%20271-perintah%20cukai%20barang%20dan%20perkhidmatan%20(pembekalan%20dikecualikan)%202014.pdf
(Goods and Services Tax (Exempt Supply) Order 2014)
So, how much did you know about this Legal Myth?
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