GST Health Check

• Ensure that the company’s current business operations comply with relevant tax laws and regulations
• Analyze the risks and impacts that non-compliant business operations may bring to the company, thereby promoting the company to correct its non-compliant operations
• Provide recommended solutions for correcting non-compliant business operations
• Identify tax planning opportunities to reduce the company’s overall tax burden

The Goods and Services Tax (GST) is Malaysia’s value-added tax, implemented on most transactions during the production process. GST is levied on the provision of goods and services from suppliers to retailers, but all parties in the production chain can claim tax refunds (except for blocked input tax), with only the final consumer bearing the GST. In many countries, GST is also known as Value Added Tax (VAT), a multi-tiered tax system applied to goods and services.

Although GST is implemented at every stage of the supply chain, it does not become part of the product cost, as the input GST paid can be claimed back. Starting from April 1, 2015, the standard GST rate was set at 6%. Suppliers, manufacturers, wholesalers, and retailers can claim back the input GST paid on purchases, which reduces the cost of doing business in Malaysia, leading to more reasonable prices for consumers. To promote socio-economic development, certain essential goods and services are exempt from GST, including basic food, accommodation, education, medical services, public transportation, domestic water supply, and a certain amount of electricity supply.