Goods and Services subject to Government Service Tax (GST) Malaysia

"In principle, GST is imposed on all goods and services produced in the country including imports. However, certain basic foodstuff likes rice, sugar, flour, cooking oil, vegetable, fish and meat, eggs and essential services such as health and private education, public transportation, residential property and agricultural land are not subject to GST. Such exemption is to ensure that the lower income group is not burdened by GST. "

Source : http://www.treasury.gov.my/index.php?option=com_content&view=article&id=1496%3A15-adakah-semua-barang-dan-perkhidmatan-dikenakan-gst&catid=186%3Acukai-barang-dan-pekhidmatan&Itemid=306&lang=en

As quoted above, it seems like we still have further to configure in application to implement GST in Malaysia. My understanding from that, the best configuration is to have different category and type for tax calculation, and each of the type of tax apply to individual Goods and Services ("item code").

Below is my assumption to have a solid yet flexible tax calculation:

(Category Of Tax) 

           |

           |__>> Goods
           |           |__(Type of Tax)
           |                      |__> GST 5%                 --> Item G01XXXXX
           |                      |__> GST 7%                 --> Item G02XXXXX
           |                      |__> Special Tax Type 1  --> Item GTX01XXX
           |                      |__> Special Tax Type 2  --> Item GTX02XXX                   
           |__>> Services 

           |                      |__(Type of Tax)
           |                      |__> GST 2%                 --> Item S01XXXXX
           |                      |__> GST 4%                 --> Item S02XXXXX
           |                      |__> Special Tax Type 1  --> Item STX01XXX
           |                      |__> Special Tax Type 2  --> Item STX02XXX                    

From the above tax method, timely and accurate report shall available when owner wanted to submit their tax, weekly, monthly, or yearly. In addition, it might be configurable to posted in different tax GL Account Code for reporting purposes.


In fact, not all the application are Enterprise Resource Planning (ERP) or having integration to Inventory Module, however, we still believe it is still depending on the quality of consultation to provide a better solution to suit your needs.


Note: The quote is updated since 15/03/2010, we are still not confirm the final tax method .......