GST requires businesses who have exceeded the prescribed threshold to
register and to keep records of input and output tax. Businesses report their
liability in a specific period called taxable period.
Explore the following sections to understand your responsibilities and
obligations as a registrant under GST.
The first step to being GST-ready is to register for a GST identification number. You need to check whether you are required to register or whether you want to register voluntarily.
Persons having businesses with annual sales turnover exceeding RM500,000 are liable to be registered under GST. Persons include an individual, sole proprietor, partnership, company, trust, estate, society, union, club, association or any other organization including a government department or a local authority which is involved in the business of making taxable supplies in Malaysia.
The annual sales turnover can be determined based on either:
You also need to decide on the type of registration best for your business:
You must apply for deregistration of your business within 30 days from the date of the following circumstances when:
Group registration is a facility that allows several companies to group and centralize their administration for the GST accounting purpose. Each company must be registered individually before they can be grouped as a single registered person and each company must be making wholly taxable supply.
A taxable person who is carrying on its business in several divisions or branches upon request and subject to stipulated terms and conditions can be registered in the names of those divisions/branches. This is a facility for any taxable person with a number of self accounting units to register each unit separately for GST.
Each division/branch will be given a separate GST identification number and make its own returns. However, the taxable person remains accountable for all GST liability of all divisions/branches.
When you charge GST, you need to issue a tax invoice showing the amount of GST and the price of the supplies separately. The tax invoice has to be issued within 21 days after the time of the supply. Particulars to be shown in the tax invoice:
The Director General of Customs may upon request allow the tax invoice to be varied from the above whether in term of particulars in the tax invoice or issuance of other type of tax invoice e.g. simplified tax invoice.
Simplified tax invoice which does not have the name and address of the recipient, the maximum of input tax to be claimed must not exceed RM30.00 (6% GST). If the recipient wants to claim the full amount of input tax (more than RM30.00), then he must request for his name and address to be included in the simplified tax invoice.
DG may allow the simplified tax invoice to be issued containing:
Basically, all taxable persons will be required to account for GST based on accrual (invoice) basis of accounting i.e. all output tax and input tax are to be accounted and claimed based on the time when the invoice was issued or received.
However, certain categories of taxable persons may be allowed to use the payment (cash) basis of accounting. This facility may be given to businesses who carry out their activities solely on a cash payment basis.
All business and accounting records relating to GST transactions are to be kept in Bahasa Melayu or English for a period of seven (7) years.
GST returns must be submitted to the GST office not later than the last day of the following month after the end of the taxable period.
Taxable period is a regular interval period where a taxable person is liable to account and pay to the government his GST liability. The standard taxable period is on quarterly basis. However, a registrant may apply to be placed in other taxable period (monthly or 6 monthly) subject to specific conditions as follows:
Businesses have to charge and collect GST on all taxable goods and services supplied to the consumers. Only businesses registered under GST can charge and collect GST. Businesses are allowed to claim whatever amount of GST paid on the business inputs by offsetting against the output tax.
If your output tax exceeds the input tax, the difference shall be remitted to the Government together with the GST returns not later than the last day of the following month after the end of taxable period. Online payments through:
Payment via cheque/bank draft/money order must be made payable to 'Ketua Pengarah Kastam' and mail to:
Ketua Pengarah Kastam Malaysia Jabatan Kastam Diraja MalaysiaPusat Pemprosesan GSTKompleks Kastam Kelana JayaNo.22 Jalan SS6/3 Kelana Jaya47301 Petaling JayaSelangor
Any refund of tax may be offset against other unpaid GST, customs and excise duties. Refund will be made to the claimant within 14 working days if the claim is submitted online or 28 working days if the claim is submitted manually.
Penalties may be imposed if the following offences are committed:
Any person who is aggrieved by the decision of the officer of GST may apply for a review and revision to the DG within 30 days from the date of notification. Alternatively, such person shall make an appeal to the Tribunal within 30 days from the date of the decision.
The appeal case can be represented by the taxpayer himself or by any person whom he may appoint. The hearing shall be conducted in a private proceeding unless both parties agree to an open court.