What is GST?
The GST was announced by Malaysia’s Prime Minister, Datuk Seri Najib Razak during Budget 2014 speech. GST has been scheduled to start on 1st of April 2015.
Key facts :
- GST Rate will be 6%
- Companies who will have to register are those with annual turnover > RM500K
- Companies do have the option to register on voluntary basis if their annual sales is <RM500k.
- Some business will find registering is beneficial if they deal primarily with GST registered businesses.
- Registration date: Latest 28 February 2015.
- The Malaysian government has announced a grant that will be available to businesses that register for GST.
- SMEs to contact GST approved accounting system suppliers to get this grant.
- A total of RM150 millions grants for software and another RM100 millions for training are allocated for SMEs.
If you are SMEs – You should know about GST.
- It will impact every aspect of the business if the business falls within the GST threshold (RM500,000 sales).
- If your business volume is less than RM500,000 you could also be impacted. because you purchase goods and services from those that do.
- It has legal implications and penalties will be imposed. Be aware of the legal implication.
- You need to add GST to your sales, and pay the collected GST to the government. How do you do that.
- You need to upgrade your accounting system to cater for GST.
- You can claim back GST paid by your business. How to do it?