FAQ on GST 6% to 0%

All supplies of goods and services which are now subject to GST at standard-rated 6% becomes standard-rated 0% effective on 01 June 2018. Importation of goods is also subject to GST at standard-rated 0%. Here we listed the most common FAQ on GST:

1 STATUS OF GST

1. Is such MOF’s statement applicable to an exempt supply?
A : An exempt supply goods or services is remain exempt. It does not change to standard-rated 0%.

2. Q : Do I need to wait for a letter issued by JKDM to change the rate to standard rated 0%?
A : No, please impose GST at standard-rated 0%.

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2. REGISTRATION

2.1. Q : Do I need to apply to cancel my registration?
A : No, cancellation is not required and you remain registered until further notice.

2.2. Q : I have applied to register for GST but have yet to receive any approval, what should I do?
A : JKDM will continue to process the application.

2.3. Q : I registered late and have been penalised with late registration penalties. Can the penalty be remitted?
A : Remission of penalties is under the discretionary power of the Director General. You are required to apply for the remission.

2.4. Q : I would like to apply for voluntary registration under Section 24 of the GSTA 2014. Do I have to apply?
A : No, you do not have to apply for voluntary registration

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3. DEREGISTRATION

3.1. Q : I have ceased to be a registered person. What is the GST treatment on the business assets?
A : You are required to account for GST at standard rate 0%.

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4. TAX INVOICE

4.1. Q : Do you need to make amendments to the tax invoice to standard rate 0%?
A : Yes, tax invoices need to be issued and the standard rate of 6% is changed to standard rate 0%.

4.2. Q : I made a supply after 01 June 2018 and charged GST at standard rated of 6%. Tax invoice was issued to the buyer. This means I HAVE FULLY charged GST. Do I have to account for tax at standard rate of 6%?
A : 1. Yes. If a credit note CANNOT be issued to the buyer, GST at standard rate of 6% should be accounted for.
2. If a credit note can be issued and the company has accounted for the GST, the company may make adjustments via GST-03.

4.3. Q : I have sold goods and have issued a tax invoice on 01 May 2018. The item was returned by the buyer on 30 June 2018. Should credit note be issued at a standard rate of 6% or a standard rate of 0%?
A : Credit note should be issued at standard rate of 6% because it relates to a tax invoice that was issued on 01 May 2018.

4.4. Q : I have sent my goods to the buyer on 25 May 2018. What is the GST treatment if the tax invoice is issued on 01 June 2018?
A : GST should be charged at standard rate of 6%.

4.5. Q : I have perform my services to the receipient on 25 May 2018. What is the GST treatment if the tax invoice is issued on 01 June 2018?
A : GST should be charged at standard rate of 6%.

4.6. Q : The goods was supplied on 15 June 2018. Tax invoice has been issued before 01 June 2018. However, payment was made after 01 June 2018. What is the GST treatment?
A : GST standard rate of 0%.

4.7. Q : The services was performed on 15 June 2018. Tax invoice has been issued before 01 June 2018. However, payment was made after 01 June 2018. What is the GST treatment?
A : GST standard rate of 0%.

4.8. Q : Tax invoice was issued on 15 June 2018 in respect of utility services granted from 15 May 2018 to 14 June 2018. What is the GST treatment on this supply?
A : GST should be charged at 6% up to 31 May 2018. From 01 June 2018, GST should be charged at standard rate of 0%. Utility companies should make adjustments in subsequent bills.

4.9. Q : A company supplied goods / services before 01 June 2018. Tax invoice will be issued within 21 days from the date of delivery of the goods / services being performed. What is the GST treatment and tax code that need to be used for such supply?
A : GST should be charged at standard rate of 6% and the tax code to be used is SR (6%).

4.10. Q : The company has supplied goods / services before 01 June 2018 and full payment has been received. The tax invoice will be issued after 01 June 2018. What is the GST treatment on such supply?
A : GST should be charged at standard rate 6%.

4.11. Q : What is the GST rate on the self-billed invoice?
A : The GST is standard rate of 0% in self-billed invoice.

More about FAQ on GST, refer to the official links

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