GST Diary for layman - A.1.Scope of GST

GST is charged on:-

a)      any taxable supply of goods and services;

b)      made in the course or furtherance of any business; 

c)       by a taxable person;

d)      in Malaysia.

     Ref: Para 5, GST General Guide

In other words, Malaysia will soon to have a superior tax regulation system not only charge on certain persons who need to fulfil some requirement (e.g. at least earning RM14,000 by not claiming any alternative relief may subject to income tax), but also a pet fish eat something that may cost a buck (e.g.RM1).Example: any taxable goods (fish food) supply by a taxable person (pet shop) is subject to GST. Thus, Malaysia will sooner become a developed nation that even a pet fish, dog, cat will also take part to contribute their portion to the nation economy via GST.

When  we talk about the word “taxable supply”, we do not have specific list or mentioned item would be fall under the category of “taxable supply” same like Sales Tax or Services Tax, but we do have an exemption supplies list of goods (residential land and property) and services (e.g. Financial, Accommodation Education & etc.). In short, everything is not exempt supply they are taxable supply. Thus, you could imagine that when the moment you came out from restroom in a shopping center which they collect a 20 cents from you, and if they are GST taxable person, you are required to pay additional 6% GST to Royal Malaysian Custom Department (RMCD)on top of the 20 cents collected by the taxable person.

To specifically understanding on each individual item (or specific item you are dealing with) is subject to GST, kindly refer to my topic [Types of supplies].