What is GST?
From 1st April 2015, the Malaysian government implemented 6% GST charges. Goods & Service Tax (GST) is a tax charged on the supply (including sales) of goods and services made in Malaysia and on the importation of goods and services into Malaysia. Even though GST is charged on the sales price of the goods or services, the amount to be remitted to the Government is only on the value added to the goods or services at each level of the distribution/supply chain.
The people need to know that GST is charged and collected on all taxable goods and services produced in the country including imports.
Who has to register with GST?
Any person who makes a taxable supply for business purposes and the taxable turnover of that supply exceeds the threshold of RM500, 000 is required to be registered for GST.
You must register for GST if you carry out a taxable activity and if your turnover:
- was over $60,000 for the last 12 months, or
- is expected to go over $60,000 for the next 12 months
- is less than $60,000, but you include GST in your prices, for example taxi drivers who have included 15% in their taxi fares.
- You can choose to register for GST even if your annual turnover it less than $60,000. This is referred to as voluntary registration.
When should you register with GST?
The effective date of registration is on the first day of the following month after the end of the twenty eight days liability.
Once you register for GST, you must:
- charge GST at 6% on all your sales, except for exempt supplies
- give tax invoices to GST-registered persons within 28 days
- keep GST invoices and receipts when you buy goods or services for your business
- keep GST invoices to claim a GST credit for a supply of more than $50 (including GST)
- keep any other records and paperwork to support the figures in your GST returns
- calculate your sales and income and your purchases and expenses
- make additional GST calculations, if applicable, eg for GST adjustments and provisional tax
- calculate your GST total
How should you register with GST?
To register for GST every business guy need to:
Find out about taxable goods and services. The taxable goods here referred are personal and real property, except money.
Find out the requirements for voluntary registration or special types of registration.
Work out what information you need before you start the registration process.
Choose how you want to account for your GST.
Decide how often you will need to file your GST returns.
Once all the above status is applicable you are now ready to register.
To register with GST in myIR services click the following link:
For registering GST with myIR you need to have:
- a myIR Secure Online Services account to use this service. Simply login or register to myIR
- an IRD number to be registered
- BIC (business industry classification) code – if you do not have your code you can get it from the Business Industry Description and Code website
- bank account number (for refunds)
What information do I need to provide for GST registration?
You will need to give details of:
- the person or entity applying for registration
- the trading name (if different from above)
- the business address, including postcode
- relevant telephone numbers
- the name and legal status of the person making the application
During the registration process you will also be asked to provide:
- your expected annual taxable turnover
- the nature of your business
- any preference you have for the months you wish to make your quarterly GST returns
- You have to complete registration form GST-01. Application can be made either
GST-01 registration form is available at the nearest Customs office or you may download from the GST website, i.e. www.gst.customs.gov.my. Documents relating to business or company registration are required to be submitted only upon request by Customs. Upon successful application, you will receive an approval letter which informs you of your GST registration number and effective date of GST registration. A license in the form of hard copy will not be issued.
TYPE OF GST FORMS:
Forms for GST registration are as follows:
i. GST – 01 Application for goods and services tax registration
ii. GST – 02 Application for group / joint venture registration
iii. GST – 02A Details of group / joint venture member registration
iv. GST – Adm3 Application for goods and services tax registration exemption
v. GST – Adm4 Application for cancellation of goods and services tax registration/special scheme
What is the process of filing GST returns?
A registrant needs to account for GST charges and GST paid on the taxable supplies made by him in each taxable period. Business can claim for GST returns from the Malaysian government through the following mechanism and methods:
If you need to file an Individual GST return (IR3).
Need to apply for your IRD number. If you don’t have this call us on 0800 227 774. When you claim a refund you must keep:
- a copy of the GST invoice you issued for the sale the refund relates to
- a separate GST bad debt account slip
- amount you have written off as bad debt
- amount of GST you want to claim as a refund for bad debt
- GST period in which you originally accounted for the GST on the sale
- GST period in which you are claiming a refund
- total amount of GST charged on each sale
- amount of any payment received for each sale
- name of your customer
- date and number of the invoice
You must keep the records listed above for six years from the date you make your claim. GST returns and payments must be submitted not later than the last day of the month following the end of the taxable period.
How will refunds be processed?
The GST refunds will be proceeded with the direct credit to your bank account, if you provide your bank details, you can fill out a Direct credit authorization (Fast refunds) (IR587) form, which you can find in the “Forms and guides” section.
If a refund applies, they will send you a cheque within 15 working days. Your GST return will have a due date on it, which is the date you need to get the completed GST return to us.
How to e-file GST returns?
GST is a self-assessed tax. GST-registered businesses are required to e-File their returns and make payment to Inland Revenue Authority of Singapore (IRAS) by the due date .It is compulsory to e-File your GST returns through myTax Portal. Failure to e-File is an offence under Regulation 53(1) of the Goods and Services Tax (General) Regulations. Inland Revenue Authority of Singapore (IRAS) is responsible for collecting income tax, property tax, goods & services tax
To e-file your GST returns we should need to provide
Your organization’s tax reference number
Your personal identification number (NRIC/ FIN/ ASGD/ ITR)
Your personal SingPass/ IRAS PIN
Your organization’s e-Services Access Code issued by IRAS (required only if your organization is e-Filing GST return for the first time or you would like to authorize/ re-authorize a person for e-Filing).
Since GST registration is essential for the purposes of submission of GST return, payments, correspondence, etc. it is necessary to maintain clear and perfect records in accounting purposes. Among the various GST accounting software in the market, Reach GST Accounting software is one of the simple but equipped and effective GST accounting software for your any type of business in Malaysia.
There are many best features about Reach GST accounting software. To name a few:
With Reach GST Accounting software you will be able to view the last prepared invoice automatically while creating new Invoices. Set reminders for every invoice. SMS or email reminders automatically. Send bills automatically to your accountant and add notes. Prepare VAT, Service Tax, TDS and Excise Reports automatically.
So automate your business and to be free from your GST issues start to implement Reach GST accounting software for your any type of business. To know more about Reach GST accounting software Visit us today. You can even try our software here. You can also speak with our software experts at 603-21683603/ 603-21683631.