An introduction to Good & Services Tax (GST) in Malaysia such -Scope of tax -GST mechanism -Dfination of taxable person -Types of supply -GST registration -Place, time & value of supply -Types of registration -Tax invoice, debit note & credit note -Bad debt relief

1. By Ken Woo
CA(M), ACCA(UK), BSc(First Hons)

2. Current Consumption Tax
10% sales tax + 6% service tax
Sales Tax and Service tax
On manufacturing and
importation
On prescribed service e.g. restaurant,
accommodation, professional
services, etc.

3. General concept of GST
BUSINESS
SHIRT
MANUFACTURER
Raw materials –
textiles, button,
zippers
Rent - factory
Utilities –
electricity, water,
telephone
Goods
(shirt)
GST on inputs
= Input Tax
GST on output
= Output tax
INPUT OUTPUT
Claimed
input tax

4. General concept of GST
BUSINESS
RENTAL OF
BUILDING
Raw materials –
building material
and equipment
Legal service,
architectural
service
Utilities –
electricity, water,
telephone
Rental of office
space / building
GST on inputs
= Input Tax
GST on output
= Output tax
INPUT
OUTPUT
Claimed
input tax

5. Proposed GST Model
A common tax on
Supplied in or
imported into
Malaysia
Sales tax
• 5%, 10% & specific rate
• Various threshold
Service Tax
• 6%, various threshold
Goods and Services Tax ( GST)
Rate = 6% , Threshold = RM500000
To replace current taxes

6. Proposed GST Model
(1) Supply
Made in
Malaysia
Taxable supply
By taxable
person
For the purpose
of business
Scope of tax
(2) Importation
of goods/
services
Subject to GST
Not subject to
GST
NO
NO
NO
NO YES
YES
YES
YES
YES

7. Proposed GST Model
Types of supply Output Tax Input Tax
Standard – rated 6% Claimable
Zero – rated 0% Claimable
Exempt No Not Claimable

8. Proposed GST Model (Zero-rate
Supply)
Agriculture
products – paddy
& fresh vegetables
Foodstuff- rice,
sugar, table, salt,
plain flour, cooking
oil
Livestock supplies
– meat, muttons,
swine
Poultry & eggs
Fish, prawn,
cuttlefish, crabs,
oyster, cockles, etc
Supply of the first
300 units of
electricity to
domestic users
Supply of water to
domestic users
Exported goods
and services
0%

9. Proposed GST Model (Exempt Supply)
Rail Buses Taxi/Hired car
Highway toll
Water
Transportation
Land for
general use
Private health
& education
Residential
Property
Financial
services

10. Proposed GST Model
- GOVERNMENT SERVICES
Local Authority & Statutory Body
Supplies made in the regulatory and enforcement
(R&E) functions
Out scope
R&E – as stated in enactment law
E.g. assessment rate collection, issuance of licenses,
penalty
Non R&E to be standard rated
Business activities
E.g. rental facilities

11. GST Schemes
These schemes generally help to ease the cash flow
for businesses and help create a pro-business
environment.
Approved Trader Scheme (ATS)
To help the cash flow of major exporters who have
significant imports where GST on imports is suspended
Approved Toll Manufacturer Scheme (ATMS)
Local toll manufacturer is not required to charge GST
when you are instructed by your overseas customer to
deliver your finished goods to his customers in
Malaysia
Your value added services to your overseas customer is
treated as a disregard supply.

12. GST Schemes
These schemes generally help to ease the cash flow
for businesses and help create a pro-business
environment.
Approved Jewelers Scheme (AJS)
GST suspended on gold and precious metal acquired
by jewellery manufacturers.
Flat Rate Scheme
To allow farmers to collect additional charges at
specific rate from the buyers
Margin Scheme
Second hand car dealers to charge and account GST on
the gross margin on the goods he sells

13. GST Schemes
These schemes generally help to ease the cash flow
for businesses and help create a pro-business
environment.
Warehousing Scheme
GST suspended in public and private warehouse to
minimise red tape and bypass the GST process.
Goods from warehouse to designated areas regarded
as export at a zero rate.
Tourist Refund Scheme
Tourists allowed to claim a refund of GST incurred on
purchases made in Malaysia if the goods are bought
out of Malaysia

15. GST Mechanism
Tax computation on STANDARD RATED SUPPLY
Business
entity
Sales (RM) Tax on Output
(RM)
Tax on Input
(RM)
Net Tax Paid
(RM)
Supplier 10.00 0.60 0 0.60
Manufacturer 50.00 3.00 0.60 2.40
Wholesaler 70.00 4.20 3.00 1.20
Retailer 100.00 6.00 4.20 1.80
GST collected by the Government 6.00
GST Rate at 6%
Final consumer pays RM 106.00

17. Supply
Meaning of Supply
To serve, to furnish, to provide something
In the case of goods- the transfer of title or ownership,
outright cash or credit sale, hire purchase, etc
In the case of services- the provision of services
Anything done for consideration
Sale, barter, exchange, license, rental, lease, right to
use, gifts or disposition
Linked to the supply
Everything received in return for the supply of goods
or services (in monetary or non monetary terms)

18. Supply
Meaning of Supply (cont.)…
Certain transactions are treated as not a supply
Transfer of going concern (neither supply of goods nor
services)
Services provided for no consideration
Goods given for no consideration can be deemed
to be a supply
Disposal of business assets
Business gifts (>RM500)
Private use of business asset

20. Taxable Person
Meaning of Person
Includes individual, corporation, Federal Government,
State Government, statutory body, local authority, society,
trade union, co-operative society, joint venture, trust,
partnership and any other body, organisation, association
or group of persons, whether corporate or unincorporated
Scope
Includes natural and juridical persons
Individual, sole proprietor and partnership
Company, club, association, society, co-operative, trade union, non
profit body and unincorporated bodies
Trust, trustee, executor, administrator and joint venture
Federal Government, State Government, statutory body and local
authority

21. Taxable Person
Meaning of Taxable Person
A person who is registered for GST
A person who is required to be registered for GST
Making taxable supplies of goods or services in Malaysia; and
Business taxable turnover has exceeded the prescribed threshold
(RM500,000 per year)
Performs any commercial activity, whatever the purpose
or results of that activity
Conduct business on a continuing or occasional basis

23. Out of Scope Supply
Supplies which are not subject to GST
Supplies by non registered person
Supplies not in the course or furtherance of business
Supplies made outside Malaysia
Example
Supplies by hawkers – not reach the threshold
Supply of service by employer to his employee –
supply for employment purpose
Supply of an overseas branch of a Malaysia Company
in that country

24. What is – other ‘non taxable’ supply
Gift (< RM500) & Sample (industrial or
commercial)
GST is not applicable
Input tax claimable

25. Token, stamp (excluding postage) &
Voucher
GST is not applicable
Input tax claimable
Pension, provident or social security fund
Supply by any society to member without
payment
Supply by any society to sponsor (of no
commercial value)
Subsequent supply of blocked input supply
What is – other ‘non taxable’ supply
NoGST&ITC

26. Deemed self supply
Deemed Self Supply
The recipient is treated as ‘supplier’ of the
taxable supplies and then he acquired back
the supplies
The recipient has to account and pay for the
tax
Imported services recipient
Includes not taxable person

27. Payment of royalty fees to overseas resident for the
use of the services in Malaysia?
The supply is treated as imported services by the
recipient belonging in Malaysia.
Type of supply – imported services
Example:
• Royalty fees charged by non resident business
situated outside Malaysia from Jan-Dec 2016
• Date of invoice 10 March 2016
• Bank prevailing rate 10 March 2016
Calculation for GST:
• Consideration for the supply @ RM 2.50
• GST to be accounted by recipient @ 6%
GST
USD 200,000
RM2.50
RM500,000
500,000 x [6/106]
RM28,301.88

28. Reverse Charge Mechanism
• Imported services: leasing services by AAA di Singapore
• Recipient: BBB Sdn Bhd (berdaftar dibawah ACBP)
• BBB Sdn Bhd need to account in GST-03 the input and output tax
• Time of supply: When payment is made
• Value of supply: Payment received
AAA BBB Sdn Bhd
Leasing of Vessel
Payment:
Sing $200,000
Supply to
himself
Output tax:
Input tax:

31. Place of supply
RULES FOR GOODS s.12(1)-(3)
Goods treated as supplied in Malaysia
• Removal from a place in Malaysia to another place in
Malaysia (local supply)
• Removal from a place in Malaysia to a place outside
Malaysia (export)
Goods treated as supplied outside Malaysia
• Removal from a place outside Malaysia to a place
inside Malaysia (import)
• Removal from a place outside Malaysia to another
place outside Malaysia (out of scope)

33. Time of Supply
General time of supply rules
• Determines when tax becomes due and payable
– Basic tax point
Basic tax point
• For goods
– Time when goods are removed
– If goods are not to be removed, time when goods are
made available
• For services
– Time when services are performed

34. Exceptions to general time of supply rules
• Actual tax point
Actual tax point
• If tax invoice is issued or payment received before
basic tax point
– Time when tax invoice is issued or payment is
received, whichever is the earlier
• If no payment is received before basic tax point
and tax invoice is issued within 21days from basic
tax point
– Time when tax invoice is issued
Time of Supply

35. Scenario 1
Time of Supply
26 May 28 May 2 June
Tax invoice issued Payment received Goods removed
(basic tax point)
Time of
supply
Time of supply is on 26 May
Date of tax invoice issued

36. Scenario 1
Time of Supply
26 May 2 June 5 June
Tax invoice issued Goods removed
(basic tax point)
Payment received
Time of
supply
Time of supply is on 26 May even though
payment is received after basic tax point

37. Scenario 2
Time of Supply
28 May 30 May 2 June
Tax invoice issued Goods removed
(basic tax point)
Payment received
Time of
supply
Time of supply is on 28 May
Date of payment received

38. Scenario 2
Time of Supply
28 May 2 June 5 June
Tax invoice issued
Goods removed
(basic tax point)Payment received
Time of
supply
Time of supply is on 28 May even though
tax invoice is issued after basic tax point

39. Scenario 3
Time of Supply
30 May 6 June 12 June
Tax invoice issued
Goods removed
(basic tax point)
Payment received
Time of
supply
Time of supply is on 6 June
Date of tax invoice issued
Within
21 days

40. Scenario 3
Time of Supply
30 May 3 June 6 June
Tax invoice issued
Goods removed
(basic tax point)
Payment received
Time of
supply
Time of supply is on 6 June even
though payment is received before
the date of tax invoice
Within 21 days

41. Time of Supply
Goods under approval or sale or return terms
(consignment goods)
• Supply has not taken place until customer
approves the goods and confirms the sale
• Removal of goods to the customer will not trigger
a tax point
Time of supply is the earlier of
• The date when the supply becomes certain to
have taken place
• 12 months after removal of goods

42. Goods under approval or sale return terms
(consignment goods)
Scenario 1
Time of Supply
1/7/2015
• Contract
signed
1/8/2015
• Goods
delivered
to
customer
1/4/2016
• Customer
sold goods
and issued
statement
15/4/2016
• TAX
INVOICE
ISSUED
1/5/2016
• Date of
payment
ToS

43. Goods under approval or sale return terms
(consignment goods)
Scenario 2
Time of Supply
1/7/2015
• Contract
signed
1/8/2015
• Goods
delivered
to
customer
31/7/2016
• 12 months
lapsed
15/8/2016
• Customer
sold goods
and issued
statement
1/2/2017
• Tax invoice
issued
ToS

44. Other Time of Supply Rules
Private use or non business use
• The time when the goods are appropriated to
the use
Private use or non business use
• Usage of goods involves a period of time
• Time of supply is on the last day of supplier’s
taxable period

46. Value of Supply
4 situations
• Consideration wholly in money
• Consideration not in money (in kind)
• Consideration not wholly in money (partly in
money and partly in kind)
• No consideration

47. Value of Supply
Consideration wholly in money
Value = Consideration in money – GST
example:
A company sells a printer for RM318 (GST inclusive)
GST = Tax Fraction × Consideration
=
଺
଺ାଵ଴଴
× RM318
= RM18
Value = RM318 - RM18
= RM300

48. Value of Supply
No Consideration
Value = Open market value - GST
example:
A company shop donates a laptop to a school. Open
market value of laptop is RM3,180
GST = Tax Fraction × Consideration
=
଺
଺ାଵ଴଴
× RM3,180
= RM180
Value = RM3,180 - RM180
= RM3,000

49. Value of Supply
Excise duty
• Value of supply includes excise duty paid or is to be
paid
Example:
A manufacturer sells 1,000 liters of alcohol for
RM3,000. Excise duty on each liter of alcohol is
RM2.50.
Price of 1,000 litres alcohol
Excise duty
Total price
GST 6%
Amount due from customer
= RM 3,000
= RM 2,500
= RM 5,500
= RM 300
= RM 5,830

50. Token, stamp or voucher
• Subject to GST if exceeds monetary value
Foreign exchange
• Converted in ringgit at the prevailing rate at
the time when supply is made
• Rate of exchange determined by the Director
General for imported goods
Other Value of Supply Rules

51. Open market value
a) Consideration in money which goods or services
generally fetch if supplied substantially, being a
supply freely offered and made between
persons who are not connected
b) If paragraph (a) cannot be used, the value of
similar supply in Malaysia
c) If paragraph (a) or (b) cannot be used, the value
is determined using reasonable means which
provides objective approximation of the
consideration in money
Value of Supply

52. Connected person
• Officers or directors of one’s business
• Partners in business
• Person holds 5% or more of voting stock or share
• One of them controls the other
• Both of them controlled by a third person
• Together they control a third person
• Members of same family
Value of Supply

53. Taxable period
• Regular interval period where a taxable person accounts and
pays GST to the government
• The registered person will be allocated monthly and quarterly
taxable periods according to the annual business turnover on
the approval of GST registration as below:
– Annual turnover not exceeding RM5 million – Quarterly
– Annual turnover exceeding RM5million – monthly
Last Date to Furnish GST Return
The GST return is required to be furnished to the Customs not
later than the last day of the month following the end of the
taxable period

55. Mandatory Registration
Liability to register
• Any person who makes taxable supply of goods and
services in Malaysia
• Registration is mandatory for businesses whose taxable
turnover has exceeded the prescribed threshold of RM
500,000
• Calculation of taxable turnover for registration is based
on total value of taxable supplies for 12 months period
• Persons include:
Individual, sole proprietor, partnership, company, trustee,
society, trade union, club, association, etc.
Government agencies, local authority, statutory body in the
business of making taxable supplies

56. Determination of taxable turnover
• Total value of taxable supplies of any month
and the previous 11 months (Historical
turnover)
OR
• Total value of taxable supplies of any month
and the next 11 months (Future turnover)
Mandatory Registration

57. Registration before effective date
Must register ≤
1‫ 5102 ݊ܽܬ ݐݏ‬
1‫ 5102 ݎ݌ܣ ݐݏ‬
‫ 5102 ݎ݌ܣ‬
*Reasonable ground
that taxable supply will
exceed RM500K
1‫ 6102 ݎ݌ܣ ݐݏ‬
* May use historical turnover as basis for
future sales

58. Mandatory Registration
Historical method
1/9/16 1/8/17 31/8/17
15/8/17
1/9/17 28/9/17
1/10/17
Preceding 11
months
+
Current
month
Period to notify
Exceeded
threshold
Liable to
register
First day of
12 mths
period
Date of
registration
28 DAYS
Last day to notify and
apply for registration

59. Mandatory Registration
Future method
1/8/16 1/9/16 28/9/16 31/7/17
Current month + next 11 months
Period to notify
Expected to
Exceeded
threshold
Date of
registration
28 DAYS
Last day to notify and
apply for registration
Liable to
register

60. Determination of taxable turnover
Includes:
• Standard rated supply
• Zero rated supply ( includes goods exported)
• Deemed supply (private use of business assets,
business gift > Rm500, disregarded supply(supplies
between group members))
Excludes:
• Supplies of capital assets
• Exempt supplies
• Supplies of imported services
Mandatory Registration

61. Determination of taxable turnover
Mandatory Registration
Category of person Taxable turnover
A company The value of all taxable supplies made by
that company
A company with division or branches The value of all taxable supplies from all
divisions and branches
A sole proprietor / an individual The value of all taxable supplies of his
business
A partnership The value of all taxable supplies by the
partnership

62. Notification of Registration
Entity designated
person
ASSOCIATION AUTHORISED
PERSON
COMPANY DIRECTOR
PROPRIETORS
HIP
PROPRIETOR
PARTNERSHIP PARTNER
PROFFESIONA
L
PERSON
INDIVIDUAL PERSON
OVERSEAS CO DESIGNATED
PERSON OF
THE AGENT
www.gst.customs.gov.my

63. Who is not liable to register?
Any person---
– Making wholly exempt supply
– Making out of scope supply
– Making supply in designated area i.e. Langkawi,
Labuan, Tioman
– Making taxable supply below threshold
Mandatory Registration

64. Registration of Taxable Person
Are carrying on a
business
Is your supply
taxable
Annual taxable
turnover exceed
threshold
You are required
to be registered
You may
registered
voluntarily
Do you intend
to make taxable
supply
You are not
required to be
registered
NO
NO
NO
NO
YES
YES
YES
YES

65. Notification of end of liability to be registered
• To notify within 30 days
• To continue to fulfill obligations until approved
effective date of cancellation:
– Charge GST
– Submit GST returns
Mandatory Registration

66. Voluntary Registration
• Business below threshold
• Business which intends to make taxable supply
• Business establishment in malaysia but makes
taxable supply outside Malaysia
Intention:
– Details of business arrangements
– Contract for establishment of premises
– Details of business purchases
– Other documentary evidence

67. Benefits:
– To recover input tax for start up costs
– To avoid giving the impression of small operation
• Registration may be cancelled if fail to make
any supply by the intended date
• Must remain registered for not less than 2
years.
Voluntary Registration

68. Exemption from Registration
• Person making wholly zero-rated supply is still
liable to register if annual taxable turnover
exceeds threshold
• DG may exempt the person from registration
upon request
Rational:
To provide option of registration as compliance costs
may outweigh benefit of ITC claims

69. Registration of sole proprietorship
Determination of liability to register
• To aggregate taxable turnover of all businesses
owned by the sole proprietor
• Registration to be in the name of the sole
proprietor

70. Registration of Partnership
• Registration of partnership business will be in the
name of the firm
• Same partners can form separate partnership
businesses
• Any change in partnership will not affect the
registration
• A partner has to give written notification to DG if
he has ceased to be member of a partnership
• Failure to do so, he is still liable for the
partnership’s liability on any tax due and payable

71. Single taxable person
• Two or more business entities directed by DG to
be registered as a single taxable person
– One registration number
– Prior registration of any business to be revoked
• Artificial separation of business for the purpose
of tax avoidance
• Determination of artificially separation of
business
– Financial link
– Economic link
– Organizational link

72. Group Registration
• Facility to allow related companies to register
as a group
• Eligibility to be member of a group
– One company controls each of the other
companies, individual or partnership controls all
the companies
– One company can be a member of one group only
– Prior registration for individual company
– Make wholly taxable supply

73. How to determine control:
A company, individual, or partnership holds
– Directly
– Indirectly through subsidiaries or
– Together directly or indirectly through subsidiaries
More than 50% of the issued share capital of the
second mentioned company
Group Registration (cont.)

74. Who is not eligible as member of a group?
• Individual
• Partnership
• Associate or affiliate company
Group Registration (cont.)

75. Example of group registration:
Companies JM, A, B and C are eligible to register
as a group even though they carry out
diversified business activities
Group Registration
JM Berhad
(Management
Company)
Syarikat A Bhd
(Hotel &
Restaurant)
Syarikat B Bhd
(Oil & Gas)
Syarikat C Bhd
(Plantation)
52%75%100%

76. Example of group registration
B is not eligible to be a group member with XYZ and A. However, B, C,
D and E can register as a group.
Group Registration
XYZ BHD
B SDN
BHD
C SDN
BHD
D SDN
BHD
E SDN
BHD
A SDN
BHD
40%80%
100% 55% 60%

77. Group Registration
Ali bin Abu
Syarikat A
Sdn Bhd
Syarikat B
Sdn Bhd
Syarikat C
Sdn Bhd
Companies A, B and C can form a group for
GST registration purpose.
75%51%100%

78. Group Registration
A & B Enterprise
(Partnership)
C SDN BHD D SDN BHD
Companies C and D can register as a group.
70%100%

79. Group Registration
XYZ BHD
A SDN BHD B SDN BHD
D SDN BHD
C SDN BHD
XYZ has direct control over A & B, and also
controls D indirectly through B.
40%52%80%
100%

80. • Nominate a member to be a representative member
• Registration of a group will be in the name of the
representative member
• Representative member to consolidate return and pay tax
for the group
• Application for registration to be made not less than 90
days before commencement of group operation
• Monthly taxable period n electronic user
• Benefit of group registration
– Supplies between group members is disregarded
– Reduce GST compliance costs
– Reduce cash flow problem
Group Registration

81. Branch or Division Registration
• Business having branches or divisions may apply to register
its branches or divisions separately
• Based on total taxable supplies of all branches and divisions
• Conditions:
– The registered person and all branches or divisions are making
wholly taxable supplies
– The registered person is not a member of a GST group
– Difficulty in submitting a single return for all branches or
divisions
– Each branch or division maintains separate account
– Each branch or division has separate business activities or in
separate location, and
– Each branch or division has same taxable period

82. • Separately registered branch or division:
– Will have separate GST Registration No
– To issue its own tax invoice
– To submit separate return and payment of tax
• The registered person is still accountable for
GST liability of all branches and divisions
• Branch/division registered separately shall
remain registered for not less than 2 years
Branch or Division Registration

83. • DG may cancel the registration if:
– Failure to comply with any condition or
requirement imposed
– Failure to fulfill the conditions for branch/division
registration
– Provide false information in application
– Necessary for protection of revenue
Branch or Division Registration

84. Responsibilities of registered person
• Account for GST on taxable supplies made and
received
• Submit GST return and pay tax by due date
• Issue tax invoice on taxable supplies made
• Inform within 30 days from date of business
cessation
• Inform changes of address, taxable activity,
accounting basis and taxable period
• Keep business records in BM or English for 7
years

85. Late registration
• Subject to late registration
penalty on number of days
late
• Late registration period is
from the date he should
have registered to the day
before he is registered
• Effective date of
registration for late
registration is the date of
application.

86. Late payment penalty rates
Example:
Date exceeded threshold - 20 April 2017
Liable to notify - 1 May to 28 May 2017
Should have been registered - 1 June 2017
Apply for registration - 1 November 2018
Late registration period : 1 June 2017 to 31 Oct 2018
Number of days late : 152days
Late reg. penalty : RM9,000

87. Blocked Input Tax

88. Blocked Input Tax
Blocked Input Tax
Passenger motor cars including hiring of car
Family benefits
Club subscription fee
Medical and personal accident insurance
Medical expenses
Entertainment expenses for family members
and potential clients
88

89. Blocked Input Tax
Entertainment expenses
89
Spouse or family
members
Potential clients
Employees
Existing Clients
No Yes

91. Tax invoice
Issuance of Tax invoice
• Tax invoice shall be issued:
– By every registered person
– Who makes any taxable supply
– In the course or furtherance of any business
– In Malaysia
• Shall contain prescribed particulars as determined in
GST Regulation 2014
• Commits an offence if registered person:
– Fails to issue a tax invoice or
– Issue a tax invoice which does not contain any of the
prescribed particulars.

92. Tax invoice
Issuance of Tax invoice
• Must be issued by a registered person and the
original copy to be retained by the customer
• Tax invoice can be issued to the customer
either hard copy or electronically
• Must be in Ringgit Malaysia (RM)
• Must be certified true copy if Tax invoice is
lost or misplaced

93. Tax invoice
Tax Exclusive
• Tax exclusive refers to the amount of GST paid as
shown in the tax invoice with separate GST
amount
Example:
Assume you sell an oven at RM1050
GST 6% = price x rate of tax
= RM1050 x 6%
= RM63
Charge customer RM 1050 + RM63(GST) = RM 1113 and
remit RM63 to Customs.

94. Tax invoice
Tax inclusive
• In retail business, it may be more practical to treat the sum of
money received from your customer (consideration) as inclusive of
GST
• The tax invoice should still show the GST as a separate amount, and
you can state the GST inclusive prices and indicate with the words
‘price inclusive of GST’
Example:
Assume you sell an oven at RM1113
GST 6% = price x rate of tax
= RM 1113 x 6/106
= RM63
Charge customer RM 1113 and remit RM63 to Customs.

95. Tax invoice
Tax fraction
• Tax fraction is the GST amount of the consideration
• The calculation of the tax fraction is as follows:
Tax fraction =
௧௔௫ ௥௔௧௘
ଵ଴଴ା௧௔௫ ௥௔௧௘
× amount of consideration
• Example:
assuming your consideration is RM100
GST =
ீௌ் ௥௔௧௘
ଵ଴଴%ା଺%
× ܴ‫001ܯ‬
=
଺%
ଵ଴଺%
× ܴ‫001ܯ‬
= ܴ‫66.5ܯ‬

96. Tax invoice
Types of tax invoice
The issuance of tax invoice can be classified as
follows:
• Tax invoice
– Full Tax invoice
– Simplified Tax invoice

97. Tax invoice
Full Tax invoice
• A tax invoice which included all the prescribed particulars
as mentioned in GST Regulations 2014
• A full tax invoice should have the following particulars:
i. The words ‘Tax invoice’ in a prominent place
ii. The tax invoice serial number
iii. The date of issuance of the tax invoice
iv. The name, address and identification number of the supplier
v. The name (or trading name) and address of the customer
vi. A description sufficient to identify the goods or services
supplied

98. Tax invoice
Particulars of a full tax invoice (cont.)
vii. For each description, distinguish the type of supply
for zero rate, standard rate and exempt, the quantity
of the goods or the extent of the services supplied
and the amount payable, excluding tax
viii. Any discount offered
ix. The total amount payable excluding tax, the tax rate
and the total tax chargeable to be shown separately
x. The total amount payable inclusive of the total tax
chargeable
xi. Any amount referred to in (i) and (j) must be
expressed in Ringgit

99. Tax invoice
ABC Shoes Sdn Bhd
Syarikat BBB Sdn Bhd
ABC Shoes Sdn Bhd

100. Tax Invoice
Simplified Tax Invoice
• A tax invoice which exclude certain prescribed
particulars in full tax invoice as approved by the
Director General
• This type of invoice is used by retailers who normally
generate large volume of invoices daily to end
consumers e.g. supermarkets, motor workshop, petrol
kiosks and other point of sales outlets
• Can be issued regardless of any value of sales
• Can take the form of an invoice, receipt, voucher or any
other similar document, as long as it has all the
particulars approved by the Director General.

101. Tax Invoice
Simplified Tax Invoice
• A taxable person is required to apply in writing to Director General
if certain prescribed particulars are to be omitted in the tax invoice
issued by him:
– Form download from Portal GST
– Taxpayer Access Point (TAP)
• i.e. a registered person applied to the DG to allow him to exclude in
his tax invoice, the following prescribed particulars
– The words ‘Tax Invoice’
– The name and address of the recipient and
– The price and tax for each item to be shown separately
• This simplified invoice may be allowed to be issued provided it
contains particulars as approved by DG

102. Tax Invoice
AAA SDN BHD

103. Tax Invoice
Simplified Tax Invoice and input tax claim
• Simplified Tax Invoice can be used to claim any amount
of input tax credit provided it contains the name and
address of the recipient
• Simplified Tax Invoice which does not have the name
and address of recipient:
– Maximum of input tax to be claimed must not exceed
RM30
– If the amount of GST payable is more than RM30, the
recipient can only claim input tax RM30
– Recipient must request to include his name and address in
the simplified Tax Invoice to enable him to claim the full
amount of input tax if GST payable is more than RM 30

104. Tax Invoice
Tax Invoice for mixed supplies
• A supplier may make exempt, zero rated and
standard rated supplies simultaneously to the
same customer
• Issues one invoice to document such transactions
• The tax invoice issued must clearly distinguish the
taxability of the supplies ( exempt, zero rated or
standard rated ) made
• Indicate separately the applicable values and the
GST rate charged on each supply

105. Tax Invoice

106. Tax Invoice

107. Invoice in a foreign currency:
If the amount of the supply stated in a tax invoice is
in foreign currency, the following particulars in the
tax invoice have to be converted into Ringgit
Malaysia (RM) for GST purpose:
a) The amount payable before GST
b) The total GST chargeable ; and
c) The total amount payable (including GST)
The foreign currency is converted into RM by using
the open market rate of exchange prevailing in
Malaysia at the time when the supply takes place
Tax Invoice

108. Tax Invoice

109. Tax Invoice
Tax Invoice and Supply Given Relief
• Minister may grant relief to any person or class or persons
from the payment of the whole or any part of the tax on any
taxable supply of goods or services or any importation of
goods
• A taxable person shall be relieved from charging and
collecting GST on taxable supplies made to such person or
class of persons
• GST should not be charged
• The Tax Invoice issued to such person shall state the clause:
‘ relieved from charging GST for supply to a person given
relief under item….., Schedule……….Of GST (Relief) Order
201X’

110. Tax Invoice

111. Tax Invoice
Tax invoice and Imported goods
The recipient of imported goods does not hold a tax invoice
for the imported goods. GST is paid at the time of importation
based on the invoice from the overseas supplier using
customs declaration forms ( Customs Form No.1 and 9).
These declaration forms will be sufficient for the purpose of
input tax claim by the importer or buyer
Tax invoice and Imported services
The recipient of imported services does not hold a tax invoice
for the imported services. If the importer of the services is a
registered person, the imported services is treated as a
supply made by the recipient and he has to account for GST in
the GST return covering the taxable periods in which the
imported services were paid.

112. Credit and Debit Note
• Credit note is issued when the amount
previously invoiced is reduced or a transaction
is cancelled
• Debit note is issued when the amount
previously invoiced is increased for the same
supply

113. Credit and Debit Note
Credit Note (due to change in legislation)
• A change in the tax rate
• A change in the description
• A credit note shall be issued under the following situation:
– A tax invoice in relation to the supply has been issued
– A return for the supply has been submitted to the DG
Taxable person shall
• Make an adjustment in the return for the taxable period where the
change in rate or description takes place
• Supplier reduces output tax for the corresponding amount stated in
the credit note
• Recipient reduces input tax
Example: standard rate to zero rated/
exempt tax charged on the supply is
incorrect

114. Credit and Debit Note
Credit Note( due to adjustment in the course of business)
• adjustment in the course of business:
– When the goods invoiced as standard rated should have been
exempt or zero rated
– The supply of goods or services is cancelled
– Consideration for the goods have been partly or fully waived
– Quantity discount given after the goods have been supplied
– When sub standard goods are accepted by the customer at a
reduced price
– Goods are returned or services are not accepted
– Goods and services are supplied for an unconfirmed
consideration

115. Credit and Debit Note
Example – credit note’s adjustment
Goods sold on 20/7/15 by company A to B, amount RM1000(exclude GST at
6%). Goods returned on 10/8/15 to A, amount RM208. Credit note issued on
25/8/15 by A.
Company A(seller)
July 2015( return)
Output tax: RM1000 x 6% = RM60
Aug 2015 (adjustment in return)
Decrease output tax: RM208 x 6/106 = RM11.77
Company B ( Buyer)
Jul 2015 (return )
Input tax: RM1000 x 6% = RM60
Aug 2015 (adjustment in return)
Decrease input tax: RM208 x 6/106 = RM11.77
Output tax
input tax
*monthly taxable period
Adjust by
declaring the
related
output &
input in form
GST- 03

116. Credit and Debit Note
Debit Note (due to change in legislation)
• A change in the tax rate
• A change in the description
• A debit note shall be issued under the following situation:
– A tax invoice in relation to the supply has been issued
– A return for the supply has been submitted to the DG
Taxable person shall
• Make an adjustment in the return for the taxable period where the
change in rate or description takes place
– Supplier increase output tax for the corresponding amount stated in
the credit note
– Recipient increase input tax
Example: zero rated/ exempt tax to
standard rate (charged on the supply
is incorrect)

117. Credit and Debit Note
Debit Note( due to adjustment in the course of business)
• adjustment in the course of business:
– When the goods invoiced as zero rated should have been
standard rated
– Additional charges such as transportation cost imposed
after delivery of goods
– When goods delivered to the customer are under priced
– Over supply of goods or services to the customer
– Goods and services are supplied for an unconfirmed
consideration

118. Credit and Debit Note
Example – Debit note adjustment
On 20/10/15, ABC issued a tax invoice to BBB Co for RM10600
inclusive GST 6%
In Oct. taxable period for that particular transaction:
– ABC accounts output tax of RM600 [i.e. RM10600 x 6/106]
– BBB Co claimed an input tax of RM600 [i.e. RM10600 x 6/106]
On 20/10/15, ABC raised a debt note for the amount of
RM1060 inclusive GST 6%
In nov taxable period,
– ABC has to make an adjustment by increasing the output tax by
RM60[i.e. RM1060 x 6/106]
– BBB Co has to make an adjustment by increasing the input tax
by RM60 [i.e. RM1060 x 6/106]

119. Credit and Debit Note
A Credit and Debit Note shall contain the following particulars:
1. The words ‘credit note' or ‘debit note’ in a prominent place
2. The serial number and date of issue
3. The name, address, and GST identification number of the supplier
4. The name and address of the person to whom the goods or
services are supplied
5. The reason for its issue
6. A description which identifies the supply of goods and services
7. The quantity and amount for each supply
8. The total amount excluding tax
9. The rate and amount of tax
10. The number and the date of the original tax invoice

120. Credit and Debit Note

121. Credit and Debit Note

122. Bad debt relief
• Bad debt relief:
– Tax is already paid
– Whole or part of the consideration has been written off as
bad debts
– Total payment or part payment not received 6 months
from date of supply; and
– All reasonable efforts have been made to recover the debt
– Can claim bad debt relief up to 6 years from time of supply
Formula =
ܲܽ‫ݕ݈݌݌ݑݏ ݈ܾ݁ܽݔܽݐ ݋ݐ ݐܿ݁݌ݏ݁ݎ ݄ݐ݅ݓ ݀݁ݒ݅݁ܿ݁ݎ ݐ݋݊ ݐ݊݁݉ݕ‬
‫ݕ݈݌݌ݑݏ ݈ܾ݁ܽݔܽݐ ݎ݋݂ ݊݋݅ݐܽݎ݁݀݅ݏ݊݋ܥ‬
× ܶܽ‫ݕ݈݌݌ݑݏ ݈ܾ݁ܽݔܽݐ ݄݁ݐ ݊݋ ݈ܾ݁ܽݕܽ݌ ݀݊ܽ ݁ݑ݀ ݔ‬

123. Bad debt relief
Bad debt relief:
Supply
Tax paid
Claimed
relief
6 months elapsed
6 years period for claiming bad
debt relief

124. Repayment of bad debt relief
• Repayment of bad debt relief should be made not later than
the last day of the subsequent month in which the repayment
was made
EG:
• Repayment formula :
(payment received x tax due on the supply) /consideration
• Needs to apportion the payment received to reflect the
consideration for taxable supply
January February March April May June
Received part payment
of debt
Last day to account
Payment of the
balance of debt
Last day to account

125. Repayment of bad debt relief
Example:
• AAA Sdn. Bhd. issued tax invoice to BBB Sdn. Bhd. for the
supply of the followings:
– standard rate supply: RM10,600 (tax inc.)
– zero rate supply: RM10,400
– Total: RM21,000
• When BBB failed to pay, AAA Sdn.Bhd. then claimed bad
debt relief for the output tax which it has paid (i.e:RM600)
• Later, BBB paid RM10,000
• For repayment of bad debt relief AAA needs to properly
attribute part of RM10,000 to the standard rated supply

126. Repayment of bad debt relief
Example (continued):
• Proportion of Standard rate supply to total consideration:
=
10600
21000
× 100% = 50.47%
• For RM10000 payment received the amount attributed to
standard rated supply is RM5047
• The amount of repayment for bad debt relief is:
=
‫ ݀݁ݒ݅݁ܿ݁ݎ ݐ݊݁݉ݕܽ݌‬ × ‫ݕ݈݌݌ݑݏ ݄݁ݐ ݊݋ ݁ݑ݀ ݔܽݐ‬
ܿ‫݊݋݅ݐܽݎ݁݀݅ݏ݊݋‬
=
5047 × 600
10600
= ܴ‫86.582ܯ‬

128. Supply Spanning
What is supply spanning GST?
• Payment or invoice before 1.4.2015 and supply
takes place on and after 1.4.2015 or vice versa
– E.g. sales of goods, provision of services: e.g.. Airline
tickets & cinema
General rule
• Any supply before 1.4.2015 is not subject to GST
• Any supply on or after 1.4.2015 is subject to GST
• Claim input tax credits on acquisition and
importation on or after 1.4.2015

129. Supply Spanning - Goods
• Goods supplies by sales tax licensee
Selling
stock
Selling
stock
Selling
stock
Selling
stock
1st April 2015
Invoice
Invoice
Goods delivered
Goods delivered
Goods delivered
Goods delivered
Contract Invoice
Invoice
payment
Subject to sales
tax
Subject to GST
Subject to sales
tax
Subject to sales
tax

130. Supply Spanning - Goods
• Goods supplies by non sales tax licensee
• Goods not subject to sales tax
Selling
stock
Selling
stock
Selling
stock
1st April 2015
Invoice
Invoice
Goods delivered
Goods delivered
Goods delivered
Invoice
payment
Subject to GST
Subject to GST
Subject to GST
Value of supply is
deemed inclusive of
GST

131. Supply Spanning - services
Prescribed Service under Service Tax Act
STL GST
1st April 2015
Contract
Contract
Invoice
issued
Invoice
issued
payment
Service
provided
Service
started
Service
provided
Service
started
Invoice
issued
Service
ended
Invoice
issued
payment
Subject to Service
tax
Subject to Service
tax
Subject to Service
tax
Subject to Service
tax

132. Supply Spanning - services
Not Prescribed Service under Service Tax Act
GST
1st April 2015
Contract
Contract
Invoice
issued
Invoice
issued
Payment
(service
started)
Service
provided
Service
started
Service
provided
Service
ended
Invoice
issued
Service
ended
Invoice
issued
payment
Subject to GST
(value of supply
inc.GST)
Subject to GST
(proportional)
- periodic supply
Not subject to GST
Subject to GST

133. Supply Spanning - services
• Supply is subjected to GST
– If payment received or invoice issued before
1.4.2015 (GST implementation date)
1/4/2015
SST GST
Payment or invoice issued Service Performs
Deemed payment
received or invoice
issued on 1 April
2015
Subject to
GST
E.g..
• Ticket bought in 5.6.2014
• Travel for 12/8/2015
Supplier account GST for April
2015 taxable period
Recipient can claim input tax in
April 2015 taxable period

134. Supply Spanning - services
Scenario: Supply of service spanning 2 taxable periods
Internet service
subject 6% GST
Internet service
subject 6% GST
1.4.2015
Contract for supply of
Jun 14 to May 15
Contract for supply of
internet service from
Jun 14 to May 15
invoice
Single invoice issued. For Jun 14 – May 15
E.g.: monthly charge RM100
• Total: RM1200
Value for Apr 15 & may 15 is deemed inclusive GST
6
106
× 100 × 2 = ܴ‫23.11ܯ‬
Calculation of GST:
6
106
× 100 × 2 = ܴ‫23.11ܯ‬
Tax fraction
2 months: Apr
& May
April
taxable
period
May
taxable
period
• Account GST RM11.32
to Customs in April
taxable period
• Last day to account and
pay tax for April taxable
period is 31.5.2015

135. Supply Spanning - importation
Before 1/4/2015 On or after 1/4/2015 Implication on GST
Goods imported Release from customs
control
Subject to GST and date of
importation is when
released from customs
control
Services imported Payment made to overseas
supplier
Subject to GST and date of
supply is when payment
made
Payment made to overseas
supplier
Imported service
performed
Not subject to GST

137. Progressive Supply
What is progressive or periodic supply?
• Part of supply before effective date and part of supply
on and after 1.4.2015,
• Supply is treated as uniform so that can be
apportioned to pre and post GST components
• E.g. lease/ rental agreement, outsourcing/ franchise
agreement, electricity, licensing
General rule
• Any supply before 1.4.2015 is not subject to GST
• Any supply on or after 1.4.2015 is subject to GST
• Work out GST on proportional time basic

138. Progressive supply : services
E.g.. Supply of service: payment in advance
Period
Supply
Tax
treatment
Pricing
16days
No service tax GST GST
RentalRental
30days 30days
1 Apr 2015
RM1500 RM1500
Calculation of GST on supply
On proportional basis
Consideration:
30 days : RM1500
1 days: RM50
16 days: RM50 x 16 = RM800
GST for 1-16 Apr: RM800 x (6/106) = RM45.28

140. Non-reviewable contract
Non reviewable contract for GST purpose
• Written contract with no provision for general
review of the consideration for the supply
until a review opportunity arises
And
• Contract entered not less than 2 years before
the effective date (contract before 1st April
2013)

141. Non reviewable contract
A contract is considered as “non-reviewable” where-
a) The supply of goods or services is specifically
identified in the contract;
b) The consideration (i.e. the price ) in monetary terms
(whether by reference to a specific amount or by way
of a formula) for the provision of goods and services is
specified in the contract; and
c) The contract contains no provision for any change in
the consideration arising from the imposition of GST
or any general review of the consideration.

142. Non- reviewable contract
GST treatment
• Treated the supply as zero-rated supply if
made before (whichever earlier)
– 5 years from 1.4.2015, or
– When a review opportunity arises
• Conditions:
– Both supplier and recipient are registered person;
– Supply is a taxable supply ; and
– The recipient is making wholly taxable supply

143. Non-reviewable contract
≥2 years from ED
1.4.2015
SST GST
Contract
ends
Review opportunity or 5
years, whichever earlier
Non-reviewable contracts
Contract
A
Contract
B
Contract
C
No supply
Supply will
start 1/4/2015
Zero rated
Zero rated
Standard rated
Standard rated
Standard rated
No GST
No GST

144. Non-reviewable contract
EXAMPLE: scenario 1 – Recipient becomes a registered person
Contract
Non-reviewable contracts
made not less than 2 years
before ED RPNRP
Standard rated Zero rated
Recipient became registered
person
Review opportunity or 5 years,
whichever earlier
1st April 2015
ED
Non registered person

145. Non-reviewable contract
EXAMPLE: scenario 2 – Recipient becomes a registered person
Contract
Non-reviewable contracts
made not less than 2 years
before ED
RP
RP NRP
Standard ratedZero rated
Recipient ceased to be registered
person
Review opportunity or 5 years,
whichever earlier
1st April 2015
ED
Registered person

146. Non-reviewable contract
EXAMPLE: scenario 3 – Changes in recipient status
Contract
Non-reviewable contracts
made not less than 2 years
before ED
RP RP
Standard ratedZero rated
Change in status
Review opportunity or 5 years,
whichever earlier
1st April 2015
ED
Wholly taxable to mixed supplier
Standard rated Zero rated
Mixed supplier to wholly taxable

147. Warranty inclusive in price
• lf warranty is included in the price of the goods, the
coverage that spans 1.4.2015 will not be subject to
GST.
• The replacement parts or services during that period
will not be subject to GST.
• Extended period will be subject to GST but again the
replacement parts will not be subject to GST.
• FOC parts supplied during warranty not subject to GST
if selling price include after-sales service ,repairs and
FOC replacement parts.
• Services and replacement of parts FOC not subject to
GST.

148. Supply under warranty
• Scenario 1: warranty included in the price and purchased
extended warranty before 1.4.2015
Warranty begins
1/1/2015
Warranty expire
31/12/2015
Extended
Warranty
Expire
31/12/2016
Replace of
goods/services
Replace of
goods/services
No GST No GSTGoods purchased
Purchase extended
warranty
No GST
1/4/2015
Extended warranty

149. Supply under warranty
• Scenario 2: Extended warranty purchase after effective
date
Warranty begins
1/1/2015
Warranty expire
31/12/2015
Expire
31/12/2016
Replace of
goods/services
Replace of
goods/services
No GST No GSTGoods purchased
Purchase
extended
warranty
1/4/2015
Extended warranty6% GST

150. Construction agreement
GST treatment
• Charge GST on value of supply that exceeds the
value as determined at 1.4.2015
• Value determine at 1.4.2015:
– Value of work done and material permanently
incorporated in accordance with written agreement
– Valuation by authorized person on or before the end
of supplier first taxable period
– Certificate signed by authorized person
– E.g.. Architect, civil engineer or quantity surveyor

151. Construction agreement
• GST is due and payable on the value of supply that exceeds the value of
works & material incorporated in the construction site as in agreement
Value of works & material incorporated Works to be done
Value of supply
Construction
agreement
1/1/2014
Certification by
authorized person
1/4/2015
Works completed
31/12/2015
Subject to GST
E.g..
• On 1.4.2015, architect certify:
• Value of works & material =
RM4000000
• Value of supply by contractor = RM4250000
• GST is due and payable on RM250000

152. Construction agreement
GST treatment on Construction agreements
• Charge GST on value that exceeds value as determined at 1st April 2015
Value of works & material incorporated Works to be done
Construction
agreement
1/1/2015
Certification by
authorized person
1/4/2015
Works completed
31/12/2015
Subject to GST
Scenario 1:
If value of work done at 1st April
2015 is RM 400000; then for the
6th payment, out of RM37500,
GST is charged at RM12500. 7th
installment onward will subject
to GST.
Amount paid to contractor = RM 375000 5th installment
payment
Value of supply
RM 750000
6 Upon completion of brickworks, walls and partition of ground floor 5 37500
7 Upon completion of brickworks, walls and partition of first floor 5 37500
8 Upon completion of roofing of the building 5 37500
9 Upon completion of electrical conduits and plumbing 5 37500
10 Upon completion of internal and external plastering 10 75000
11 Upon completion of internal and external installation and painting, doors and
windows
10 75000
12 Upon completion of connection of utilities 5 37500
13 On the date the purchase taken vacant possession of the building and to be held
by vendor solicitor as stakeholder for payment to vendor
5
14 2.5% 6 months after taken vacant possession 18750
2.5% after the expiry of 18months after the date of taken vacant possession 18750
100 750000

153. Construction agreement
GST treatment on Construction agreements
• GST charge on proportion
Value of works & material incorporated Works to be done
Construction
agreement
1/1/2015 1/4/2015
Works completed
31/12/2015
GST
Scenario 3:
If certification by authorized person is done after the 1st taxable period of the supplier,
then the proportion of supply on 1.4.2015 onward is subjected to GST.
EG.
Total value of supply = RM750000
Value per month = RM7500000/12 = RM62500
Value subject to GST = RM62500 x 9 = RM500000
Amount paid to contractor = RM 375000 5th installment
payment
Value of supply
RM 750000
1/8/2015
Certification by
authorized person

154. Retention payment
Retention payment
• Any payment that relates to:
– Supplies made before 1.4.2015 is not subject to GST
– Supplies made on or after 1.4.2015 is subject to GST
100% completion
retain 10% for 6
months, RM30000
Rectification work
RM7500
Rectification work
RM11000
(6% GST) Balance payment
RM11500
( NO GST)
1/2/2015
15/3/2015 15/7/2015
1/4/2015 1/8/15

155. Hire purchase transaction
Hire purchase transaction
• HP/ Financial lease is a supply of goods and a
supply of credit.
• Goods supplied before 1.4.2015 not subject to
GST although installments
√ made spanning 1st April 2015
√ Instalments begin aŌer 1st April 2015
• Same treatment applies to financial lease

156. Unredeemed voucher
Unredeemed vouchers
• Supplies subject to GST if
– Voucher is issued before 1.4.2015; and
– Goods or services made on or after 1.4.2015 on redemption
of voucher
• GST treatment
– Tax chargeable*
1/4/2015
Purchase
voucher
Redeemed
voucher
*Not subject to GST if the sale
tax/service tax was charged

157. Removal from machine
Supplies from machines operated by bank notes
/coins, token or the like
• 1st removal within 7 days from 1st April 2015
not subject to GST
• 2nd and subsequent removal within 7 days
from 1st April 2015 subject to GST
• From 8th April 2015 onwards , any removal
subject to GST

158. Removal from machine
GST treatment on money / token removal from machine
removal
1.4.2015
8.4.2015
Supply of
Goods
eg vending
machine
Service eg
public massage
chair
Face value
voucher
vending
machine
1st $$$
(NO GST)
1st $$$
(NO GST)
1st $$$
(GST)
2nd $$$
(GST)
2nd $$$
(NO GST)

160. Special refund
Entitle to special refund of sales tax (full refund) if:
• Claimant is a registered (mandatory) person on
1.4.2015
• Hold goods on 1.4.2015 for making taxable supply
• Goods are sales taxable goods
• Goods where sales tax was paid before 1.4.2015
• Holds relevant invoices, import document to show
sales tax has been charged
• Holds payment documents (cheque, payment voucher,
etc.) to show sales tax has been paid

161. Special refund
Reduced special refund to 20%
(20% method)
• Purchase goods from non sales tax licensed manufacturers
• Goods are sales taxable goods
• Holds invoices which does not show sales tax has been
charged
• Claimant is a registered (mandatory) person
• Holds goods on effective date for making taxable goods
• Reduce the actual purchase price by 80% for goods held on
hand on 1.4.2015

162. Special refund
20% method
• Reduce the actual purchase price by 80% for
goods held on hand on 1.4.2015
Special refund = actual price x 20% x sales tax rate
Example :
Purchase RM15,000 of raw materials but holds
RM10,000 on 1.4.2015
Special refund = RM10,000 x 20% x 10% = RM200

163. Special refund
Full Refund of ST 20% refund of ST
Who is entitled Registered Person (mandatory)
When to claim Within 6 months starting 1st April 2015
Type of goods 1.Taxable goods under Sales Tax
2.Goods for making taxable supply under GST
Existence of goods Hold goods on 1st April 2015
calculation Actual price X ST rate Actual price X 20% X ST
rate
ST liability on goods Has paid sale tax
Has paid to ST Licensee
Has made payment to
supplier
Documentary proof Import declaration ,sale tax
invoice , proof of payment
Invoice , proof of payment
Audit requirement Refund ≤ RM10 K – audit certificate by chartered
accountant
Refund ≥ RM10 K – certified by approved company
auditor

164. Special refund
Goods not eligible for special refund
• Goods have been capitalized
• Goods used partially or incorporated into other
goods e.g. raw materials, work in progress
• Goods for hire e.g. cars, generators
• Goods not for business e.g. personal use
• Goods not for sale or exchange e.g. containers ,
pellets, stationaries , moulds, manufacturing aids

165. Special refund
Manner to claim special refund
a) Make one claim within 6 months from
1.4.2015 without corrections allowed
b) Use special form to claim refund (manual or
online ) which includes either:
i. For special refund ≤ RM10,000 require audit
certificate signed by a chartered accountant; or
ii. For special refund ≥ RM10,000 require audit
certificate signed by an approved company auditor

166. Q & A SESSION