January 28, 2015

GST : Answer from Penguasa Kastam Part 1

Everyone at this moment is busy dealing with GST matters. I have also no choice but to seek some practical and logical answers.We all would know there would be a lot of different answer coming from different custom officer. Even in the guideline itself, they tends to have new updates along the way. One option I found more useful is that, getting a good knowledge from a good "Penguasa Kastam" rather "Telephone Operator" would be much more practical. Another solution is from a qualified GST Tax Agents, which we might foresee charges for asking.

Here are the findings:-

a. There would be only one billing named : "TAX INVOICE"
No Cash Bill, No Cash Memo, No Cash Sales. In order to differentiate it, put a Term Column inside the Tax Invoice.
(of course it is not workable in a practical situation, what we would do is to put a wording "Cash Sales" in front of the No., while the title of the documents still remain as "TAX INVOICE", while the wording "Invoice" put in front of the No., this would get yourself a two running different numbers)

b. There would be only one running continuous number for "TAX INVOICE"
No distribution of different Tax Invoice book for different sales person, No open two Tax Invoice book at the same time, and No simply get a numbered Tax Invoice book and open an invoice or cash sales.

c. Simplifed Tax Invoice need to apply for naming a bill "Cash" for customer
There is a need to ask for Customer Name and Address to fill in every Tax Invoice if simplified Tax Invoice not approved or pending for approval. The application can be done through GST website after login your password.

d. Pre Printed and Computer Generated Tax Invoice
There are only two options using Pre-Printed or Computer Generated Tax Invoice. No GST chop number is allowed or your own company chop if you the one are issuing your own Tax Invoice. 

e. Error or Correction on Tax Invoice would be cancel or using Credit Note
There is a need to cancel the Tax Invoice and reissue a clean Tax Invoice. While dealing of changes of price and quantity, credit note is required.
(Strictly speaking, if you would notice that this implementation actually would ensure of no changes of Tax Invoice is allowed, whereby this could be traced from the GST software, time, date and user who modify it)

f. One Credit Note refer to One Invoice?
Based on the example given, one issued credit note is referring to only one invoice with date and reason.
(However if we look for GST compliance software, it would allow us that one issued credit note to refer many invoices + date with each specified reasons. )

g. HSCODE? Tariff Code? search for Zero Rated Item?
Based on custom guideline, below would illustrate how to get the code. For those who export, you may obtain this code from K2 form, for those having trouble identified, you may get either forwarding company or at custom office. They mostly use PDK code and AHTN code, which equivalent to HSCode. Let's see example :

i) What you would get from Custom website, for zero rated item. It is read as 1511.90.910 to be zero rated item.

ii) Where do you get the Tariff Code Table from custom website? It is at the bottom.

iii) Once you click, search PDK code 1511, search in front 4 numbers is sufficient.

    From here you would see 1511.90.910.

iv) However something you may notice a code having a four digits at the back, search AHTN code 1511

Now you may get AHTN Code 1511.90.9200 = PDK Code 1511.90.910

For general guideline please click http://gst.customs.gov.my/en/cp/Pages/cp_imp.aspx for Sundry Goods list.

h. Buy before 01 April 2015, Deliver on or after 01 April 2015?
The following example seems easy to understand, is to show GST is inclusive RM2,547.17.
(This situation happens a lot, it might require a lot of adjustment entries in the accounting department where custom might not really into accounting explanation. Therefore, for the Billing department, it is advisable to bill on 01 April 2015 if the delivery reach at customer place on and after 01 April 2015 for a simple solution.)

to be continued....
for the time being I could be reached at stevenglobal@yahoo.com

January 22, 2015

GST : "Forcible" Registration and Penalty

A totally shock and surprise attack over non registered GST companies and individuals that suppose to be registered themselves before due date 31 Dec 2014.

Latest News :-
Companies which refuse to register for the Goods and Services Tax (GST) by March 1 will be slapped with a RM15,000 compound and forced to register for the new tax regime, the move was to ensure all qualifying companies register for the GST by Feb 28 to avoid paying the fine.

Being delay to register GST on Mar 1, 2015, the penalty is RM9,000, while delay on Mar 21, the penalty is RM14,000 and the maximum delay would see a total of RM15,000 penalty at the end of 31 Mar 2015.

From what we have known all the while is that, from a generous monthly penalty RM200, and then turn into a RM1500 monthly, and a sudden starting hike of penalty at least RM3000 p/month.

Custom does have all the numbers of companies, that have yet to register would be forced to register starting February 2015, and the penalty rate is keep on going up day by day.

Only 304,444 companies have registered for the GST so far which mean the balance of 195,556 companies and individuals are on the penalty list. First round is 50,000 companies are being identified and would be chased by the custom starting February 2015.

From the other part of the news is that, those registered GST who would choose GST ready cash register machine, need to have a barcode scanner, which mean the product which carries a barcode needs to be captured as sales, instead to simply using a general item code for the product.

This Point of Sales category is on the announcement from the GST site. Click below:-

The compliance is truly a headache for a beginner.

Updated news :-

No legal action will be taken against companies if they were to register for GST by Feb 28, 2015, However, action would be taken against those who failed to do so and a crackdown would be launched against errant traders from Mar 1.

January 14, 2015

GST : National Essential Medicines List

There a list of National Essential Medicines List published in the GST website, contains MAL Number as a guideline for zero rated.

Let's have a look below:-

You may click the link download the above file. However, you may also wish view the same file from the custom Malaysia, look for 9A), by click below link:


January 12, 2015

GST : List of Sundry Goods

There a list of sundry goods published in the GST website.
For everyone in the industries as well as consumer, this file serves much better picture which product is GST standard rated and which one is Zero Rated.

Let's have a look below:-

You may download the above file (4MB) in size. However, you may also wish view the same file from the custom Malaysia, by click below link:


November 20, 2014

GST : Highlights

Since GST is approaching, it is something we would like to know more about in near future, having practical hands on, as well as handle it with great care. I have summarized at about 10 basic guidelines in the following pdf file.

Those are :
a) where you could obtain GST Guidelines, Form, and Information
    (generally one needs to know how to be online, and reading it yourself)

b) how to calculate RM500k, and 28 days require to register
    (annual turnover 12 months does not necessarily mean from Jan to Dec)

c) eight (8) type of GST audit and their power
    (custom seldom tell you this, when cancelling GST, they would audit your accounts)

d) GST form (GST-03), reports your Sales, Purchase, Fixed Assets 
    (custom seldom tell you that, these records must tally with income tax)

e) GST submission monthly/quarterly, Invoice Basis/Payment Basis, GST Amendment requirement, Penalty remain unpaid, Bad Debts Claim Relief, Price Display
    (Basic understanding on GST operation, amendment of GST form is allowed but penalty)

f) Rules : Late registration, Late payment, 7 years of book keeping record, Directors' 20%, failure to furnish information, semakan status kawalan imigresen
    (Rules are remain as rules)
    (Do not wait for penalty letter, but to submit penalty along)
    (Any correction on submitted of GST form, let's say the amount comes from 6 months ago,
            although not stated clearly, it would become a 6 months penalty rate)

g) GST accounting software belongs to Custom
    (Custom seldom tell you that, GST compliance software actually is Custom Software)

h) Tax invoice within 21 days, CN and DN requirement
    (21 days rule to ensure billing is fast enough for custom)
i) Transition Period
    (Read it and understand GST is inclusive even before 01.04.2015)

j) GST Calculation
    (Knowing payment of GST can fluctuate due to Sales and Purchase on seasonal sales)