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Transitional Issues
Date: 4 May 2014
Venue: AKMAL Timur, Kelantan
Presenter: Fazilah Ariff
SM!"A#
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Agenda
Supply Spanning GST1
2Acts Repealed
3 Non Reviewable Contract
4 Special Refund
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3
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From the appointed date A! " implementation of GST ie# $ April %&$'(
Still enforced on matters where ta) is due and payable and liabilityoffences( incurred*
Repeal of Sales Ta) and Service Ta)
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Final return for Sales ta)
• Final return must be submitted not later than %+ days from the datethe GST Act comes into force GST implementation date(
• All ta) liabilities must be accounted in the final return
Final return for Service ta)• Return can be submitted in accordance with the Service Ta)
Actpayment basis(# The licensee may have to submit two returns* GST return
Special form for service ta) until the e)piry of $% months from the GSTimplementation date
Repeal of Sales Ta) and Service Ta)
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Facility Not registered
person
Registered
person
Section , - Ac.uisitions freeof sales ta) C/01 C/02(
Account sales ta) ongoods held on hand
State in C/3$ andpay in return for last
ta)able period
Not re.uired toaccount for salesta) on goods heldon hand
Section $& - 4inister grant
e)emption and refund tolicensee
Section 5$A - deduction ofsales ta)
Semi finished and finishedgoods 6section %%0( whencease business 7 cease to belicensed8
Repeal of Sales Ta) Act $,9%
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:hat is supply spanning GST;
3ayment or invoice before appointed date and supply ta<es place onand after appointed date or vice versa e#g# sales of goods1 airline
tic<ets and cinema
General Rule
Any supply before appointed date is not sub=ect to GST
Any supply on or after appointed date is sub=ect to GST
>)ception to general rule
Supply of warranty 3rovision of goods where sales ta) has been charged
3rovision of services where service ta) has been charged
Non reviewable contracts
Supplies Spanning GST
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2>F?R> GST ?N ?R AFT>R GST I43@ICATI?N ?N GST
Goods Suppliedavailable 7 removed(
3ayment received 7Invoice issued
Not sub=ect to GST 2T sub=ect toSA@>S TAB
Invoice issued or payment
received
Goods sub=ect to
sales ta) supplied
Not sub=ect to GST 2T sub=ect to
SA@>S TAB
Supply non ta)ablegoods under SalesTa) Act $,9%#
alue of supply deemed inclusiveof GST and account in the $st ta)able period after the appointeddate
Goods imported Release fromcustoms control
Sub=ect to GST and date ofimportation is when released fromcustoms control
Supplies Spanning GST
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2efore GST ?n or After GST Implication on GST
3rescribedServices supplied
3ayment receivedNot sub=ect to GSTSub=ect to service ta)
3ayment received7 service ta)charged or paid
3rescribed Servicessupplied
Not sub=ect to GSTSub=ect to service ta)
3ayment received7 invoice issued
Non prescribedservices
alue of supply deemed inclusive
of GST and account in the $st
ta)able period after the appointeddate
Supplies Spanning GST
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If the invoice for renting a hall is
issued before GST
implementation date1 prior to an
event which would only ta<eplace after A!*
The services will not sub=ected
to GST but sub=ect to serviceta)#
Supplies Spanning GST
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Tic<ets sold before GSTimplementation but services
perform after A! eg# admission
tic<ets to theme par<
Sub=ect to GSTD
Amount paid to be GST inclusive eg*
Tic<et price at R4$&& ) GST E to
be shown as R4$&#&& notseparated(
Supplies Spanning GST
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:hat is progressive or periodic supply;
3art of supply before appointed date and part of supply on
and after appointed date 1 supply is continuous and
uniform e#g# electricity and commercial rental1 telephone
rental
General Rule
Any supply before appointed date is not sub=ect to GST
Any supply on or after appointed date is sub=ect to GST
:or< out GST on proportional time basis
3rogressive or 3eriodic Supply
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GST $7'7%&$0
Sub=ect to GST
alue H R4 5&&
Supply of
electricity
%$757%&$0 %&7'7%&$0
Ta)able alue H R45&&75& ) %&H R4%&&
GST H R4$%
3rogressive or 3eriodic Supply
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Treatment of Supplies Spanning GST
GST to be imposed at the time when goods are removedor when services are performed
Special transitional rules to cater for certain transactions
e#g# rights granted for life such as club membership1retention payment and machine operated by coin
Supplies Spanning GST
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Non reviewable contract
:ritten contract with no provision to review consideration
for the supply until a review opportunity arises
AN!
%' months before the date of GST implementation $ April %&$0(
Non Reviewable Contract
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GST implementation date
Contract
signed
Bill passed
Subject to GSTNo GST
illustration – contracts spanning effective date
Contract A
Contract B
No GST Zero rated
Non-revieable contracts
No GST Standard rated
!evie opportunit"
or # "ears$
%ic%ever earlier
Contract
ends
Subject to GST
Transitional period
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ero rate supply for 0 years after appointed date or when a
review opportunity arises whichever is the earlier if
2oth supplier and recipient are registered personsD
Supply is a ta)able supplyD and
The recipient of the supply is entitled to claim input ta)
on that supply
After 0 years period1 revert to either standard rate or Jero
rate
Non Reviewable Contract
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>ntitle to special refund of Sales ta) $&&( if
claimant is registered mandatory( person
hold goods on appointed date for ma<ing ta)able supply
goods are sub=ect to sales ta)
holds relevant invoices or import document to show sales
ta) has been paid
Special Refund
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Goods not eligible for special refund
capital goods e#g# building and land
goods used partially or incorporated into other goods e#g# raw
materials1 wor< in progress
goods for hire e#g# cars1 generators
goods not for business e#g# personal use
goods not for sale or e)change e#g# containers1 pellets1 stationeries1
moulds1 manufacturing aids
goods entitled to drawbac<
goods allowed Sales ta) deduction under Section 5$A STA $,9%
credit system(
Special Refund
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4anner to claim special refund
claim within months from appointed date
for special refund K R4$&1&&&1 re.uire audit certificate signed by a
chartered accountant
for special refund L R4$&1&&&1 re.uire audit certificate signed by an
approved company auditor
use special form to claim refund online(
to be given in eight+( e.ual instalments over a period of two years
to account as output ta) if special refund is claimed and goods arereturned
Special Refund
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Reduce special refund to %&
%& method(
purchase goods from non licensed manufacturers
goods are sub=ect to sales ta)
holds invoices which does not show sales ta) has beencharged
claimant is a registered mandatory( person
hold goods on appointed date for ma<ing ta)able goods
Special Refund
i l f d
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%& method
reduce the actual purchase price by +& for goods held onhand on appointed date
Special refund H actual price ) %& ) sales ta) rate
>)ample*3urchase R4$01&&& of raw materials but holds R4$&1&&& on
appointed date
Special refund H R4$&1&&& ) %& ) $&
H R4%&&
Special Refund
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End of Presentation
Royal MalaysianCustoms
INOIR
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i( Metua Setiausaha1
3erbendaharaan 4alaysia
3e=abat 3erla<sanaan GST1Momple< Mementerian Mewangan1
No#01 3ersiaran 3erdana1
3usat 3entadbiran Mera=aan 3erse<utuan 4alaysia1
%0, 3TRA/AA#
Tel * &5-+++%5&&&
ii( GST 3?RTA@ " http*77www#gst#customs#gov#my
iii( Customs Call Centre CCC(
Tel* &5- 9+&9%&&
Fa)* &5- 9+&90,,
>mail* cccEcustoms#gov#my
INOIR