|Sales price||RM100,000||Sales price||RM150,000||Sales price||RM175,000|
|Assume manufacturer's GST for purchases is RM2,000||Add GST 6%||RM6,000||Add GST 6%||RM9,000||Add GST 6%||Not applicable|
|Input tax credit||RM2,000||Input tax credit||RM6,000||Input tax credit||can't claim|
|GST remit||RM4,000||GST remit||RM3,000||Cost increased||RM9,000|
GST shall be levied and charged on the taxable supply of goods and services made in the course or furtherance of business
in Malaysia by a taxable person. GST is also charged on the importation of goods and services. A taxable supply is a supply
which is standard rated or zero rated. Exempt and out of scope supplies are not taxable supplies.
GST is to be levied and charged at the proposed rate of 6% on the value of the supply. GST can be levied and charged only of the business is registered under GST. A business is not liable to be registered of its annual turnover of taxable supplies does not reach the prescribed threshold. Therefore, such businesses cannot charge and collect GST on the supply of goods and services made to their customers. Nevertheless, businesses can apply to be registered voluntarily.
Standard-rated supplies are taxable supplies of goods and services which are subject to a proposed rate of 6%. A taxable person who is registered under GST has to collect GST on the supply and is eligible to claim input tax credit on his business inputs in making taxable supplies.
Zero-rated supplies are taxable supplies of goods and services which are subject to GST at zero percent rate. In this respect, businesses do not collect any GST on their supplies but are entitled to claim credit on inputs used in the course of furtherance of the business..Read more in Cukai Barang dan Perkhidmatan (Pembekalan Berkadar Sifar)
Exempt supplies are supplies of goods or services which are not subject to GST. In this context, businesses do not collect any GST on their supplies and are not entitled to claim credit on his business inputs.Read more in Cukai Barang dan Perkhidmatan (Pembekalan Dikecualikan)
Supplies which do not fall within the charging provision of the GST Act include non-business transactions, sale of goods from a place outside Malaysia to another place outside Malaysia as well as services provided by the Government sector.