The document outlines the implementation of GST in Malaysia, detailing the categories of taxable supplies, compliance requirements, and strategic formulation for businesses. It emphasizes the necessity for awareness, efficiency improvements, and the formation of a GST committee to assess impacts on various operational areas. Additionally, it discusses system implementations, necessary documentation, training, and optimization strategies for cash flow and compliance costs.

1. Ben Lai
www.industries.my

2. GST is charged on:
 Taxable Supply of Goods and Service
 Made by Taxable Person
 In the course or furtherance of business
 In MALAYSIA
 Imported Goods/Services

3. Type of supply Output Tax Input Tax Example
Standard-Rated 6% Claimable Scaffolding, Roofing, Truss,
Racking, Painting,
Installation etc.
Zero-Rated 0% Claimable Basic Food, Lives Stock,
300units of electricity,
Exported Goods & Services
Exempted No GST Not
Claimable
Public Transport, Tol,
Education, Healthcare,
Financial, Residential
Properties, Land for general
use.

5. Strategy Formulation
Create awareness
Compliance with Law

 Improve Efficiency
TOP
Management
--------------
Middle
Management
--------------
Technical /
Operational

6. GST committee was formed with representative
from the respective department to undertake
the impact study on the area of :
 Information System
 Finance / Account
 Sales & Marketing
 Purchasing & Logistic
 Human Resource

8. Before 1 April 2014
 At least 1 month for SYSTEM test run
 Create awareness among all
After 1 April 2014
 Monthly Submission on time
 Not Changes Allowed after submit
 Internal Control

10.  ERP system implementation
◦ Mapping of New Chart of Account
◦ Exchange rate in conformity with RMC requirements
◦ Documentation Setup in conformity with RMC
requirements
◦ GST Return form 03
◦ GST audit file
 Accounting System Advisory Subsidiaries
◦ AutoCount
◦ SQL accounting
◦ SAGE 300 ERP

11.  To review on current documentations
o Expenses Claims Form
o Monthly Allowances
 To formulate new set of HR Policies

12.  Review of all material contracts
 Obtained appropriate registration
 Cancel old sales / service tax license
 Prepare for switch over date (trial run)
 Apply for appropriate special scheme (ATS)
 Identify Cash flow impact and optimization
 Minimization of compliance cost
 Maximize claim of input tax
 Financial Application Impact (eg. BA, Term
Loan)

13.  Pricing Strategy
 Standard rated supplies (Products & Scrap)
 Deemed supplies (Services & Labor)
 Timing of supply (21 days rule)
 Debts Management (6 months old debts)
 Transfer pricing issues (Inter-Company Sales)

14.  Vendor validation & Selection
o To request for vendor registration
o To study all material cost impact
o To study on indirect cost impact (eg. TPT cost)
o To minimize input tax (bonded warehouse)

15.  Attend training run by professional body
 Training of key staff (In house)
 Engage external consultant to run the project
across subsidiaries.

16.  To identify connected person and consider
transfer pricing issue
 To optimise business models impact by GST
implementation
 To optimise Corporate Structure for GST
efficiency