Malaysian Goods and Services Tax (GST)

Frequent Asked Questions (FAQ)


Q1   What is GST?

Q2   Is GST a new consumption tax?

Q3   Why the sales tax and service tax (SST) need to be replaced with GST?

Q4   Why does the government want to implement GST?

Q5   What is the rate of GST that will be imposed?

Q6   Why the government proposes a GST rate which is lower than the current tax rate

Q7  Is it true that those earning below RM3,000 per month who are not liable to pay income tax will now have to pay tax under GST?

Q8  When will the government implement GST?

Q9   How does GST work?

Q10 What is input tax, output tax and input tax credit

Q11 What are standard rated, zero rated and exempt supplies?

Q12 Who will collect GST and remit to the government?

Q13 How will the government ensure that the business will remit the right amount of tax collected to the government?

Q14 Will the GST rate be increased in the near future like what has been done by the Singapore government?

Q15 Are all goods and services subject to GST?

Q16 Will GST lead to inflation?

Q17 What benefits do businesses get from GST?

Q18 What benefits will the rakyat get?

Q19 Do all businesses need to be registered under GST?

Q20 Why is the threshold fixed at RM500, 000?

Q21 How to determine whether the threshold of RM500,000 has been reached?

Q22 If the threshold has not reached RM500,000, is it possible to register for GST?

Q23 Can registration be done online?

Q24 How to apply for GST registration?

Q25 Where and when application for GST registration can be made?

Q26 Is there a registration charge for GST registration?

Q27 Are exports of goods and services subject to GST?

Q28 Are farmers required to register under the GST?

Q29 Are fishermen required to be registered under the GST?

Q30 How is the government going to control prices?

Q31 Are the NGOs subject to GST ?

Q32 Are charities subject to GST?

Q33 Is it true that GST will generate an additional revenue of RM 1.0 billion compared with the existing sales tax and service tax?

Q34 What are the measures undertaken by the government to assist the SMEs during the GST implementation?

Q35 Will sales tax and service tax still be enforced with the implementation of GST?

Q36 What are the measures undertaken by the government to ensure a smooth GST implementation?

Q37 Is the government machinery ready to implement GST?

Q38 Who will administer the GST?

Q39 What are the measures to be taken by the government to deal with issues of non-compliance and fraud?

(Source: Ministry of Finance Malaysia, Royal Malaysian Customs)