How to register GST ?
As announced by the Government, GST will be implemented on 1 April 2015. To ensure a smooth implementation of GST, businesses are encouraged to submit their application for early registration . RMCD is ready to accept application for registration from 1 June 2014.
Registering your Business for GST
Before you register your company for GST, you need to understand “who is required to register with GST?”. In summary, the GST registration requirement as below :
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:
- The total value of taxable supplies of the current month and the previous 11 months, or
- The total value of taxable supplies of the current month and the next 11 months.
You also need to decide on the type of registration best for your business:
- Voluntary Registration
- Group Registration.
- Divisional/Branch Registration
Voluntary Registration [Clause 24]
Any person making a taxable supply and having an annual sales turnover RM500,000 and below is not required to be registered. However, you may voluntarily apply for registration. Voluntary registration is allowable but must remain in the system for at least 2 years.
Once registered, you are required to charge and collect GST on the taxable supplies and at the same time are entitled to claim input tax credit and eligible to enjoy all facilities provided under the law.
Group Registration [Clause 27]
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.
Requirements for group registration :
- Companies are eligible for group registration if one company controls another company. One company is taken to control another company if the first mentioned company 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.
- One of the members has to be nominated by the group as the representative member of the group.
- Any taxable supply made by or to a member of the group shall be treated as a supply by or to the representative member.
- Supplies between group members would be disregarded as a supply.
- Each member of the group is required to keep proper records as they are jointly and severally liable.
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.
You must apply for deregistration of your business within 30 days from the date of the following circumstances when:
- Your business has ceased; or
- No longer fulfill the requirements of registration.
How To Register GST
You have to complete registration form GST-01. Application for GST registration can be made in the following manner:
- apply electronically through www.gst.customs.gov.my
- at the registration kiosk made available at any Customs office; or
- manual submission by post
Where to get GST-01 Form ?
GST-01 Form can be downloaded at Customs website.
GST Registration Guide
Related information on GST can be found and downloaded from these guides :-
- Getting Ready for GST – Registering for GST
- Registration (revised as at 23 April 2014)
- GST Electronic Services Taxpayer Access Point (TAP) Handbook
- Multimedia Video for Registration.