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GST Transitional
PeriodLoh Boon How
Chartered Accountant
When to pay sales tax?
1. If a sales tax licensee is not a GST registered person.
a. Raw materials and component held on 1/4/15,
b. Finished and semi finished held on 1/4/2015,
c. Supplies before 1/4/2015, but invoice and payment before1/4/2015
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When to pay sales tax?
• Submit the sales tax return CJP 1 not later 28/4/2015
2. If sales tax licensee is a GST registered person on 1/4/15,there will no liability to account sales tax.
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When to pay service tax?
a. The unpaid service tax amount exceeding 12 months fromthe date of invoice,
b. The service tax in last taxable period,
c. Supplied before 1/4/2015, but the invoice and payment onor after 1/4/2015
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When to pay service tax
• The tax return submitted on :
a. The latest 28/4/2015 – Form CJP 1,
b. Not exceed 12 months period from 1/4/2015 – Lampiran H
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What is bad debt relief andsubsequent received?
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61/1/2015 1/4/2015
Sales tax paid
Bad debt relief is claimable in 6 years
1/7/2015
Subsequent collect to
account sales taxGST
implementation
What if goods sold before 1/4/15but return after 1/4/15?
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71/1/15 1/4/15 1/6/15
Sales tax paid
Good return
• The manufacturer can claim sales tax refundby using the form JKED 2,
• The good return due to the wrong quantity,poor quality or uncontract good.
GST implementation
What if service perform before1/4/15 but terminate after 1/4/15?
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81/1/15 1/4/15 1/6/15
Services tax paid
Issued credit note for Service terminate
• The service provider can claim service taxrefund by using the form JKED 2
GST implementation
Refundable within 6 years from the services tax paid
What is progressive supply?
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91/3/15 1/4/15 1/5/15
Supply of goods and services
Payment received / invoice issued
Sales & services
tax
Scenario 1
What is progressive supply?
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101/3/15 1/4/15 1/5/15
Progressive supply of goods and services
Payment received / invoice issued
Scenario 2
Goods and Services tax
Sales & services
tax
What is progressive supply?
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111/3/15 1/4/15 1/5/15
Supply of goods and services
Payment received / invoice issued
Goods and Services tax
Scenario 3
What is progressive supply?
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121/3/15 1/4/15 1/5/15
Progressive supply of goods and services
Payment received / invoice issued
Scenario 4
Goods and Services tax
Sales & services
tax
What is special refund?
1. The register mandatorily,
2. The good held on 1/4/2015,
3. The goods are subject to sales tax and servicestax,
4. Holding the relevant supplier’s invoice (Proveof the recipient of the goods),
5. Holding the import document (Prove theimporter is the owner of the goods).
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What is special refund?
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• If the claimant unable to show proof thatsales tax has been paid on 1/4/2015.Example : Sales tax not stated in the invoice
Special refund = purchase price x 20% x sales tax rate applicable
20% method
What is special refund?
No Stock value Certified
(a) Less thatRM10,000
The audit certificate issue bychartered accountant
(b) More that RM10,000
The audit certificate issued bycompany auditor
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Stock count – identified the sales tax paid
• Submit within 6 months from 1/4/2015 through TaxAccess Point, only one time with no correctionallowed
How does special refund work?
• The special refund will be off-set against unpaidsales tax, services tax, GST and other taxes. Thebalance will be refunded on a quarterly basisover 2 years.
• If discover, false, inaccurate, misleading ormisrepresented, the DG may withhold theunpaid refund
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What is special refundsubsequently return?• If the claimant refunded and subsequently
returns, he must account for output tax. Failingto account for return will subject to penalty.
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What goods not entitled tospecial refund?• Goods used for packing materials, label
• Raw materials directly used in finished goods,such as : textile and buttons,
• Goods held for hire, Such as generator,
• Goods for hobby,
• Goods not for sales, such as : stationery, cleaning
• Capital asset
• Goods purchase with sales tax and subsequentlyexported,
• Goods entitled to claim sales tax deduction
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When does contract supply charge GST? • No opportunity to review – on or after the
introduction of GST with 0 rated supply for aperiod of 5 years
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191/6/12 1/4/15 31/3/2020
5 years
GST charge
No GST charge 0 rated
When does contract supply charge GST? • An opportunity to review – the supply will be
subject to GST when the review opportunityarise
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201/6/12 1/4/15 31/5/16
0 rated
GST chargeNo GST charge
Review opportunity
Thank you
B. H. Loh & Associates
Address :
No. 1-3-15, Goldhill Complex,
Tingkat Paya Terubong 1,
11060 Penang.
H/P No. : 016-4893382
Email : [email protected]
Web-site / facebook : bhloh.com.my
21B. H. Loh & Associates
