GST : Registration Particular

Everybody become more aware that registration actually starts on 1st June 2014. So far not many people have attended the GST talks, which might cost above RM500 per person which is claimable under HRDF.

For a smaller business, it could be a high price for a seminar, considered it as an expensive talk. Anyhow, registration has started. There is an urgency for saying "must register before 31 December 2014", which I might suspect, there would be a delay on processing due to many unforeseen and foreseen circumstances which delay company to obtain a GST ID number.

To avoid such unnecessary delay, 6 months is quite a sufficient time to get things ready, especially GST ID to appear in the Tax invoices and to appoint authorized person to handle GST beside own boss him/herself.  

GST registration form can be found with the link below. http://gst.customs.gov.my/en/rg/Pages/rg_fm.aspx  

GST registration online can be found with the link below. https://gst.customs.gov.my/TAP/_/

Form involved for initially is GST-01. GST-01 would tell what are the appropriate form needed while filling the form. Due to the advances of Information Technologies, email address is needed from the Business Owner or Directors or Person in charge. GST also request particulars of authorised person or person(s) to be registered in the form, which indicates who are the person in charge of GST for future GST audit or GST issue if arise. Particulars such as, name, I/C, email, telephone, fax, residential address, designation, appointed date, and signature are requested.


Of course, those who handle full set of accounts might fit in into this category because handling GST matters at the same time. Are we all ready for it? Below is the Industry Codes (Piawaian Klasifikasi Perindustrian Malaysia 2008) for your findings on industry code in the Part D GST-01 form.

GST : Tax Avoidance Clause?

As usual, if there is any fraud happening, the magistrates would issue a warrant, or search without a warrant, to the business entities. While running through the Guideline from custom, below is one definition on "SINGLE TAXABLE PERSON". Quite interesting is that, the Custom and the Act is giving solution on that by combining all business entities into one single taxable person regardless different business nature but sharing same kind of resources such as finance, economy and have closed relationship as an organisation in the business nature.

Let's have a look :-

Single Taxable Person : In General Guide from Custom

43. A single taxable person means two or more business entities which have been directed by the Director General to be registered under one registration number. Two or more business entities can be classified as a single taxable person when they artificially separate their business activities for the purpose of tax avoidance. All persons named in the direction by the Director General will be registered under one registration number and they may jointly nominate the name to be used for the registration of the single taxable person within fourteen (14) days from the date of the direction. Failing which, registration will be named as specified in the direction. The liability date for a single taxable person registration is the date specified in the direction.

Rang Undang-Undang CBP (GST) 2014
Arahan untuk mengira orang sebagai orang kena cukai tunggal

23. (1) Tanpa menjejaskan seksyen 20, jika Ketua Pengarah berpuas hati bahawa apa-apa perasingan aktiviti perniagaan adalah dibuat-buat yang menyebabkan pengelakan cukai, dia boleh membuat suatu arahan mengarahkan supaya orang yang dinamakan dalam arahan itu dikira sebagai orang kena cukai tunggal yang menjalankan aktiviti perniagaan yang diperihalkan dalam arahan itu dan bahawa orang kena cukai tunggal itu hendaklah bertanggungan untuk berdaftar berkuat kuasa dari tarikh yang ditentukan dalam arahan itu.

(2) Bagi maksud subseksyen (1), dalam menentukan sama ada apa-apa perasingan aktiviti perniagaan adalah dibuat-buat, hendaklah diambil kira setakat manakah orang yang berlainan yang menjalankan aktiviti perniagaan itu berkait rapat antara satu sama lain melalui hubungan kewangan, ekonomi dan organisasi.

For further explanation found from the General Guide GST,

Financial link refers to:

i. financial support given by one party to another;

ii. one party not financially viable without the support from another party; or

iii.common financial interest in the proceeds of the business

Economic link refers to :

i.seeking to achieve the same economic objectives;

ii.activities of one party benefit the other party; or

iii.supplying to the same circle of customers

Organisational link refers to:

i.common management;

ii.common employees;

iii.common premises; or

iv.common equipments

Example 1

X runs a restaurant business and sells food only whereas Y sells beverages. Both businesses share the same premise, employ the same employees and serve common customers. The total sales of food per year is RM 400,000 and that of beverages is RM150,000.

In this example, both businesses are not liable to be registered since their annual taxable turnover is below the prescribed threshold. However, it is obvious that the business activities of X and Y are intentionally separated in order to avoid from the requirement to be registered.

Both businesses fulfill the requirement to be registered as a single taxable person because of financial, economic and organisational links such as sharing thesame premise, having common customers, employing the same workers and utilizing common facilities such as chairs, tables, telephone and utilities.

As such, Customs will direct X and Y to be registered under one registration number.

Example 2

Encik Samy dan Encik Muthu own two partnership businesses providing legal services.

Legal firm A has a taxable turnover of RM300,000 and legal firm B has a taxable turnover of RM250,000. In this example, if it is proven that there are financial, economic and organisational links between the two legal firms, then these two partnership businesses will be directed to be registered as a single taxable person since the combined turnover of RM550,000 has exceeded the prescribed threshold.

GST : Wait and See MindSet in Malaysian?

Given more than 12 months for preparation on the implementation of Goods and Services Tax (GST) on April 1, 2015... everyone just seems like wait-and-see, grasping only the calculation on how 6% works. Not many people are aware that they are actually should have a plan for it. While Custom in other way around, always reminding us to refer to their website which is full of information to get ready for, with each different industry providing scenarios and examples. From internet google search, more people become aware of this topic, to search for more information.

Some people would rather think of, GST would be cancel due to the voice of the people. While the other side of the story, Custom or Government has already spending money on promoting GST, the more closer to April 2015, the more money has spent. Not forgetting budget 2014 has provided some comfort over the implementation of GST.

Therefore, the periods given is not the period for GST reconsideration, but to get ready for it. GST is not just a tax and financial issue.

It affects all parts of business operations starting from the IT system, procurement, sales and marketing, pricing setting department, supplier relationship, customer relationship to cash flow.

For instance, deadline submission, delay factor such as

a) Credit Note from Vendor Late
b) Invoice from Vendor Late
c) Computer down
d) Changing of Staff
e) No GST Staff
f) Unclear / Unsettle GST issue
g) Vendor not supportive on GST requirement, you cannot claim input tax
h) Tax reports are not tallying each other
i) Accounts not uptodate, which it includes expenses and capital expenditure (fixed assets) item.

would invites penalties and custom audit for delaying and not ready. Bear in mind, deadline would rather better translate as a full set of accounts would have been mostly completed during submission time either quarterly or monthly basis, which no more editing is to be allowed. It is easy to make mistakes if rely solely on human power without GST compliance software and a structured checklist or else there would be figures different from the Custom Report versus Income Tax figure.

Recommended Timing:-

May~Sep 2014 :
Checking GST registration criteria. more than RM500,000 annual sales, need register
Checking GST submission dateline criteria. Quarterly or Monthly
Checking documentation should have English / Malay
(* product item if in fully Chinese / Tamil - normally not accept due to accounting records)
Checking Filling System = GST Tax Filling System?
Checking Closing Stock Value = fully actual or not?
Checking software - GST registered or not? If not consider buying
Checking Manual Tax invoice + keyin method / Fully computerised Tax Invoice
Checking Vendor registered GST ID number.
Register your GST ID Identify Delay Vendor Bills
Identify Product Tax rate
Identify Different Type of Inventories, Going to be (Taxable / Exempt / Zero Tax)
Identify What are the adjustment normally
Operation Manual = documentation Getting Online System
Identify Internal Control
Who would be your ICT support for your monthly / quarterly submission. etc...depends on the industries,
Becareful, mixing type of Taxable product item industries is the hardest and complicated.

Oct~Dec 2014:
Those GST registered software, considered upgrading newer version
Getting a New PC Getting
Custom made Tax Invoice / Credit Note / Debit Note
Select a specific GST staff
Decide GST documentation = Accounting documentation Software Operation Manual, internal Control + security
Implement Internal Control Actual Stock Value as at 31.12.2014
Specify type of reason on Credit Note / Debit Note / Adjustment to the accounts.

Jan~Mar2015:
Those upgraded GST software, need to upgrade to the latest GST.
Do not change GST staff.
Do not modify accounts transaction unnecessarily
Actual Stock Quantity as at 31.01.2015
Actual Stock Quantity as at 28.02.2015
Actual Stock Quantity as at 31.03.2015
(* actual stock quantity is needed due to input tax and output tax = real stock quantity)
Accounts for 2014 completed.


START MAINTAIN YOUR GST PEOPLE / ACCOUNTS PEOPLE / ICT PEOPLE. If you are still waiting and see, the period given by Government for preparation would simply meaningless at all.

"Rang Undang-undang Cukai Barang dan Perkhidmatan telah diluluskan oleh Dewan Rakyat pada 7 April 2014. Seterusnya, pada 5 Mei 2014, Dewan Negara telah meluluskan rang undang-undang tersebut."

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SmartPhone Hidden Feature

One of the tools that I love would be the barcode app available in the Iphone as well as Android phones.

Whenever I go shopping buying grocery stuff, I would take out the phone and place it on the barcode and scan, if the item appears, it would show the price. If the price shown higher than the product in front of me, I would take it as a promoted product or reduced price item and it is time for me to buy.

Not everyone of us could ever remember every product price that we buy regularly and irregularly. Therefore this tools helps me a lot.

By the way, I could add in new product item, plus photos so that next time I could use it for reference.

Require : mobile phone, wifi internet, and barcode apps. Autofocus camera is preferable.

A configuration to :

You may download the apps as below and configure to link to my web program onsite :-

For Android

For Iphone

Contact : stevenglobal@yahoo.com
Type : Free to use