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Overview of Goods and Services Tax (GST)



Overview of Goods and Services Tax (GST) 


  • Goods and Services Tax (GST) is a multi-stage tax on domestic consumption. GST is charged on all taxable supplies of goods and services in Malaysia except those specifically exempted. GST is also charged with importation of goods and services into Malaysia. 

  • Payment of tax is made in stages by the intermediaries in the production and distribution process. Although the tax would be paid throughout the production and distribution chain, only the value added at each stage is taxed thus avoiding double taxation. 

  • In Malaysia, a person who is registered under the Goods and Services Tax Act 2014 is known as a “registered person”. A registered person is required to charge GST (output tax) on his taxable supply of goods and services made to his customers. He is allowed to claim back any GST incurred on his purchases (input tax) which are inputs to his business. Therefore, the tax itself is not a cost to the intermediaries and does not appear as an expense item in their financial statements.

** Source from Royal Malaysian Customs Department

1 comment:

  1. Thanks for sharing this great post. To get HSN Code or GST Rate List Click Here

    ReplyDelete

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