April 23, 2015

GST : Shoppers Guide

When searching the website, the shoppers guide actually comes from kpdnkk, by clicking the following link:-
http://ebook.kpdnkk.gov.my/   (not all browsers support)

For faster reference, kindly click the respective location of the following link to view, popup to show full page view:-

a) Zon Utara

b) Zon Timur

c) Zon Tengah

d) Zon Selatan

e) Zon Sabah

f) Zon Sarawak

Thank you.

April 6, 2015

GST : Manual or Electronic Receipts / Tax Invoice?

1. You may come across with Custom saying that

Business owners registered with the goods and services tax (GST) are only allowed to issue written invoices or receipts on technical grounds.

Customs Department GST division director Datuk T. Subromaniam said business premises were only allowed to issue manually written receipts temporarily until technical problems were resolved.

"It should be printed. Only when the machine or system breaks down or when there is an electricity supply disruption (are written invoices allowed).

"We do not allow issuing of written receipts indefinitely."

You may click the following for full story :------


2. However, it is the custom themselves provide the following guideline that Electronic or Manual for a tax invoice is allowable as below.

You may find it under Tax Invoice and Record Keeping Guideline page 15.

3. In the confusion of the above, sometime Custom has yet to finish their sentences.

Subromaniam said retailers such as mini markets were not allowed to issue handwritten invoices except pre-printed invoices.

He said pre-printed invoices must be printed with tax invoice, GST ID number, GST amount and others.

You may find the news link below:-

4. With the latest updates :
The Customs Department will allow traders to use their hand-written, pre-printed invoices to charge the Goods and Services Tax (GST) until the end of September.
Its GST Division director Datuk Subromaniam Tholasy however said these invoices would have had to be printed before the tax was implemented, and it only applies to hardware shops, restaurants, mini markets, grocery and sundry shops, book stores, pharmacies and places of entertainment. 

He also urged shop owners to invest in the POS system and GST-compliant cash registers as soon as possible to facilitate transactions between them and their consumers without any confusion.

You may find the news link below:-

In summary, it is advisable to change to a computerized or cash register system while they are forgetful about RM1000 GST e-voucher is just a very small amount to accommodate the changes. Some has not yet to receive the payment since last year submission.

March 29, 2015

GST : Car Price up or down?

When we are search across website searching what happen to the car price, you may find some party would suggest buy cars before April 1, such as the article below :

Link : Buy Cars Before April 1

Suggesting that unsold stocks after April 1, they would either pass on the 80% of the remaining SST to customers or absorb it.

While this comes from the following custom guidelines, which is confusing
a) The invoice does not show sales tax chargeable, it becomes 20% special refund.
b) However if the invoice show sales tax chargeable, does it mean 100% claimable special refund?

Based on this guideline, a) and b) above, the price after April 1 is totally different, whereby 80% SST could be transferred to consumer for condition a), or 0% SST is to be transferred to consumer for condition b).

This applies to all industries that are holding their closing stock in hand 31.03.2015

One thing for sure is that Custom does not require each company to perform 100% closing stock, and this also proof that Custom department does not care about pricing after GST implementation, as 80% SST old stock for all the industries is to be transferred to the consumer, 100% SST for those does not perform closing stock calculation, thus, this pricing formula is actually set by the Custom itself.


March 21, 2015

GST : Is Malaysian READY ?

After going on for some months for the GST preparation, you might experience that, Custom is providing the following services :-

a) giving us simple and basic answer, and no answer perhaps if ask further more.
b) always ask people to read online
c) provide hotline that you need to wait or no one answering.
d) transferring call from one person to another.
e) no 24hours phone support
f) no multi racial language support
g) voluntary GST register is rejected online, opposite what GST act suggest.
h) simplified tax invoice take months to be approved, and some pending
i) revising penalty rate from low to high value during short period of time
j) gst evoucher take months to claim and pending, not claim on the spot, but full of paper work.
and so on....

We know many country have implemented GST, however, given many politician party, or any minister out there, which probably have obtain Phd, Master, Degree qualification from Overseas while studying abroad, they should have known better how GST works and should have provide answer for each Malaysian. It looks like most of the leaders stay silent, that they are not studying abroad, but rather getting all the paper qualification in Malaysia. Who knows better? GST mechanism and the online GST system.

If hotel have stars rating mechanism, such as one star hotel, two star hotel.....five star hotel. If Malaysian given choice to rate Government services, it's totally obvious.

Shoppers Guide which is for Consumer until now still have not been released, which is out of tune and it's March 2015. Consumer is ready for the shopping guide, but who is not ready?

Anyway, hopefully the Government take more effort and initiative to make GST run smoothly.

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 practical, what we would do is to put a wording "Cash Sales No." instead of "No.", while the title of the documents still remain as "TAX INVOICE", the wording "Invoice No." instead of "No.", this would get yourself a two running different numbers)

b. There would be only one running continuous number for "TAX INVOICE"
Not to distribute different Tax Invoice book for different sales person, Not to use 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