Monday, March 23, 2015

Differences Between Standard Rated, Zero-Rated & Exempted

 Differences Between Standard Rated, Zero-Rated & Exempted

Supplies

Standard-Rated Supplies

There will be 6% GST involved for this category. In Lelong.my, seller can setup either Absorb (Include) or

Pass (Exclude) the rate to buyer.

More details: http://gst.customs.gov.my/en/gst/Pages/gst_sr.aspx



Zero-Rated Supplies

Some supplies fall under Zero-Rated which will have no GST (0%) incurs to your buyer. Example supplies
as below:

  • Agriculture products, paddy and fresh vegetables
  • Livestock, live poultry and animals, unprocessed meat of chicken, duck, cow, buffalo, goat,sheep, edible offal and swine (fresh or frozen)
  • Foodstuff, rice, salt, sugar, basic cooking oil, flour
  • Eggs (fresh and salted)
  • Fish, prawn, crab
  • first 200 units of electricity & water for domestic users
  • Goods supplied from principal customs area (PCA) to Designated Areas (Langkawi, Labuan &
  • Tioman)
  • Exported goods & services

More details: http://gst.customs.gov.my/en/gst/Pages/gst_zr.aspx



Exempted Supplies

These are non-taxable supplies and is not subjected to GST. Seller are eligible claim input tax and not
allowed to pass the GST to buyer. Example supplies:


  • Residential property
  • Agriculture land and land for general use, e.g. burial ground
  • Private hospital, education and financial services
  • Domestic passenger transportation and highway toll
  • Supply of gold for the purpose of investment


More details: http://gst.customs.gov.my/en/gst/Pages/gst_es.aspx