Implementing GST in Malaysia

On 16 December 2009, the Finance Minister II, Datuk Seri Ahmad Husni Hanadzlah, tabled the much anticipated GST bill in the Parliment for the first reading.

The proposed GST rate is 4% and it will be implemented in the middle of 2011, about one and half year from now.

Companies with turnover of RM500,000 and less are not required to impose GST. The government estimates that the GST revenue will be about RM13 billion in the first year. GST will have a significant impact on the ways businesses are conducted. It is a law that compel the businesses (except for those exempted) to impose GST to its customers, invoice, collect, record, file return and pay ( or get refund)

The amount of GST involved by a company could be very high and any non compliance is subject to penalty.