Exempted from 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.

The sales and rental of residential and agricultural properties and services like private health and education as well as public transportation are exempted from GST.

These are non-taxable supplies that are not subject to GST. Businesses are not eligible to claim input tax credit in acquiring these supplies, and cannot charge output tax to the consumer.

How GST works on an exempt supply :

How GST works on an exempt supply by a service provider :

Computation of GST on exempt supply :

Level of supply Sales price(including GST at 6%) Payment to Government
Raw material supplier Sales price = RM50.00
GST = RM3.00
Total sales price = RM53.00
GST collection = RM3.00
Less: GST paid =RM0.00
GST payable = RM3.00
Manufacturer Sales price = RM100.00
GST = RM6.00
Total sales price = RM106.00
GST collection = RM6.00
Less: GST paid =RM3.00
GST payable = RM3.00
Service provider Sales price = RM129.00
GST = RM0.00
Total sales price = RM129.00
GST collection = RM0.00
Less: GST paid =RM0.00
GST payable = RM0.00

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