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GST Malaysia Calculation

23 Aug 2016

GST Malaysia Calculation

"Steven Moo Financial Sustainability Blog: GST Malaysia Calculation". Stevenmoo. N.p., 2013. Web. 23 Aug. 2016.


For simple straight forward calculation, for Pemborong Calculation, assuming cost is RM30 and selling price RM40, Pemborong is able to make a profit of RM10.00, this profit is a Value Added differences, which subject to GST 6% X RM10.00= RM0.60.

However the GST has to be done through in accounting for cash flow as for the following
a) Paid to the vendor   (RM31.80)
b) Received from Customer RM42.40
c) Pay to GST Custom (RM0.60)

You are getting the same profit RM10.00 with the a) b) c) above. Custom getting RM0.60

However if ignoring input tax, it would be
a) Paid to the vendor   (RM31.80)
b) Received from Customer RM42.40
c) Pay to GST Custom (RM2.40)

You are getting the same RM8.20 profit only. Custom getting RM2.40.

How GST is going to affect our lives. Effective 1 April 2015, Malaysians is implementing Goods and Services Tax (GST) when they purchase products or seek services. There are standard rated 6% or zero rated or exempted and out of scope supplies.

"Persons" having businesses with annual sales turnover exceeding RM500,000 are liable to be registered under GST. "Persons" include an individual, sole proprietor, partnership, company, trust, estate, society, union, club, association or any other organization including a government department or a local authority which is involved in the business of making taxable supplies in Malaysia. 
The annual sales turnover can be determined based on either: 
  • The total value of taxable supplies of the current month and the previous 11 months, or
  • The total value of taxable supplies of the current month and the next 11 months.
For an average of monthly sales achieve lower than RM40,000 or based on how the financial statement being submitted previous year, everyone should have an idea GST need or need not to register.

Based on the table listed above, a business operator needs to register themselves in GST before able charging output tax to consumer and claim input tax from supplier. They may experience the following :-
a. Daily detail sales records is being captured.
b. Daily detail purchase records is being captured.

While non-taxable products and services items would be listed as well during this period.

Since the records is becoming TRANSPARENT in such a way that they might experience some impact over the accounts records being presented before 1 April 2015, and after GST implementation. Therefore during year 2014, business operators are recommended to hold a proper accounting records, and to do a proper stock check  

a. To ensure what type of stock in the business
b. To ensure stock value is captured

To facilitate the stock take process, online stock take system is available, which uses mobile smartphone that has internet access and touch screen capabilities. All data captured is able to translate into Microsoft Excel format. Kindly request for demo.

Market already has a mobile barcode capabilities to capture data for stock taking on the mobile phone. Well, GST create a tedious job for accounts people and book keepers. Please do ensure you have kept the records in order.

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