Type of GST Supply

Type of GST Supply in Malaysia

There are 3 types of supply under the Goods and Services Tax in Malaysia :

1. Standard rated supply

Standard-rated supplies are goods and services that are charged GST with a standard rate. Goods and services in this category will be charged a tax rate of 6% at every stage of the supply chain.

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.

Examples : Local supply of goods / services, supply of land and building for commercial, administration or industrial purpose, construction of all types of building

GST_standard

GST_standard Table

2. Zero Rated Supply

A zero-rated supply is a taxable supply which is subject to a tax rate of 0%.  The supplier does not collect any GST but is regarded as making a taxable supply and is eligible to claim GST  incurred on inputs.

GST is not charged to the final consumer under this category.

Businesses do not collect any GST on their supplies but are entitled to claim credit on inputs used in the course or furtherance of the business.

Examples : Export sales / international services / basic foodstuff / agricultural supplies

GST Zero Rated

3. Exempt Supply (NO GST)

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.

An exempt supplier cannot charge GST and therefore cannot claim refund of GST on inputs acquired.

GST is not charged to the final consumer under this category.

Examples : Transport services, toll/highway, certain financial services / sales & lease of residential land / property / agricultural land / private health & education

GST Exempt

4. Supplies not within the scope of GST (NO GST)

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.

Examples : Transfer of business as going concern or sales of property outside Malaysia, charges and fees imposed by the Government, donations or grants, dividends, loan repayment

In summary, please refer the following table :

GST Table

 

 

 

 

 

 

 

GST Calculator

GST Calculator is very useful if you want to calculate GST value based on the sales/purchase value. With this GST calculator you can add or subtract GST  amount.

GST_calculator

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