3A Accounting System

Wednesday, February 4, 2015

What is Goods and Services Tax (GST) in Malaysia?

  • GST (Good and Services Tax) is also named as VAT (Value Added Tax)
  • It is multi stage tax instead of single stage tax
  • The purpose of GST is to generate tax revenues to the government similar to the corporate income tax or the personal income tax..
  • It is also to eliminate weaknesses of the Sales Tax and Service Tax System
  • It will be implement on 1st April 2015
  • The standard GST rate is 6%
GST is charged on:-
(a) any taxable supply of goods and services;
(b) made in the course or furtherance of any business;
(c) by a taxable person;
(d) in Malaysia.
  • General GST mechanism with Standard Rate 6%

GST mechanism with Standard Rate 6%

  • Few topics you must read in order to understand GST:-
  1. What is Input Tax ?
  2. What is Output Tax ?
  3. What are the different type of supply ?
  4. What is Time of Supply ?

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