SE Lai CK Alerts 5-2018 – Change in GST Rate + Preparing for the Abolishment of GST/Reintroduction of SST (Update#1)

Dear Valued Clients and Associates

Further to our SELaiCK Alerts 4-2018 issued on 17 May 2018, RMCD have released a Media Release on 27 May 2018 to provide further clarity on the upcoming GST changes:

  • reduction in the GST rate from 6% to 0% wef 1 June 2018;
  • all GST registered businesses are required to channel the cost savings to consumers by lowering prices, and shall not exploit the Government’s intention of reducing prices for the benefit of consumers;
  • Sales and Services Tax (SST) will not be implemented on 1 June 2018, and the actual date of the SST implementation will be announced later; and
  • ransitional provisions relevant to GST rate reduction, with illustrative examples, are detailed in the Frequently Asked Questions (FAQ) issued on 25 May 2018.

(This 25 May 2018 FAQ supersedes various FAQs previously issued on 24, 22, 17 May 2018)

 

Salient points of the RMCD’s 25 May 2018 FAQ

  • The FAQ covers several topics including tax invoices, GST returns, interpretation of Section 66 of the GST Act 2014 (Change of Rate), impact of schemes, etc.
  • Transitional Period: Basic rule in determining GST treatment (Standard Rated 6% or 0%)?

Rule 1

Basic Time of Supply

Date of Supply of Goods (DO) or Service Performed

Rule 2

Overriding Rule

Date of Payment Received (Partial or Full)

  • Summary of GST treatment for transactions spanning 1 June 2018

 

 

 

References

Media Release (27/5/18)

http://www.customs.gov.my/ms/Documents/FAQ%20TRANSITIONAL%20GST/Kenyataan%20Media%20GST%20Kadar%20Sifar.pdf

FAQ (25/5/18)

http://gst.customs.gov.my/en/hl/SiteAssets/pdf/FAQ28BI25.5.18%20-%2010.30AM.pdf

* It is advisable to keep a constant lookout on the FAQ updates, in order to ensure full compliance of the transitional provision

SELCK Alerts 4-2018 (17/5/18)

http://www.salgroup.com.my/gst/year-2018/se-lai-ck-alerts-4-2018-change-in-gst-rate-preparing-for-the-abolishment-of-gstreintroduction-of-sst

Please do not hesitate to contact us if you have any queries or require clarifications on the above.

Best regards

29 May 2018

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