Goods & Services Tax

Harnessing the Benefits of GST to Ensure Best Business Outcomes

Goods and Services Tax (GST) was first presented in Parliament during the 2005 Budget in September 2004. It is to replace existing consumption tax, i.e. sales tax and service tax. In October 2013, the Malaysian government decided to implement GST on 1st April 2015 with a rate of 6%, which is the lowest in this region.

What This Means? 

GST is charged on all goods and services that are supplied in Malaysia or imported into Malaysia, at every stage of the supply chain. The main difference between existing sales tax, service tax and GST is the latter's multiple tax levels. Nevertheless, companies and businesses are allowed to set-off their "input tax" incurred against their "output tax".

GST Chart

Choose Crowe Horwath

GST implementation may require changes to processes and can be a daunting task. At Crowe Horwath, your business is our focus. Our dedicated team of GST experts can help you craft tailored GST implementation solution based on your unique business needs, whilst minimizing impacts and interruptions to your day-to-day operations. From staff training and project management to periodic health checks to ensure compliance, we work with you each step of the way. 


1. Pre-implementation GST Study
If your company is setting up a new business or venturing into a new area of business, your team may not be aware of the GST implications related to this new business. For such cases, we can assist your company to analyse all the different GST implications that relates to this new business and provide your team with a comprehensive analysis of the appropriate GST treatments that need to be done.


2. GST Tax Risk Management Services ("GTRiM")
GTRiM is a comprehensive review program designed to assist GST-registered businesses to ascertain their level of GST risks with regards to the overall control of the business operations. This review would cover the controls surrounding the preparation of the GST-03 form, output tax and input tax considerations faced by your company. If need be, our review program will assess your current accounting system's functionalities which may potentially produce inaccurate information or errors in the process of preparing the GST returns. With the results of our assessment, we aim to mitigate the risks faced by your company from getting penalized by the Royal Malaysian Customs Department (RMCD) due to potential errors in the GST submission and reporting.


3. GST Retainer Assistance Program ("GRaP")
As the implementation of GST is fairly recent in our country, your business may face many technical and practical issue in complying with the GST requirements. Therefore, it is important for you to understand clearly the GST treatments and implications on your business to avoid any penalties that may be imposed on your company. GRaP is a subscription-based retainer program that allows you to post your GST-related questions for the attention of our team of GST experts on the Crowe Horwath's online portal 24/7. As a subscriber to this program, you will also be notified of all the latest updates or changes in the GST laws, regulations, orders and guides that are published by the RMCD.


4. Technical Opinion on GST Implications 
There will be times when your business is faced with uncertainties in identifying the appropriate GST treatments or implications for a particular transaction or arrangement. Such ambiguities may be caused by the complexity of the transaction or it may represent an area that has yet to be extensively covered by the relevant GST laws, regulations, orders or guides published by the RMCD. In such cases, we would assist your business in studying the arrangement in detail and providing you with our expert opinion on the issue faced by your business. If required, we will assist your business to write to the RMCD to seek clarifications or an advance ruling on the matter.


5. GST Appeals/Dispute Resolution 
If you feel that your business has been wrongly penalized or affected by an adverse decision by the RMCD, we will be able to assist your business in appealing the penalty or against the adverse decision. As licensed GST agents, we will also be able to assist your business as follows:-
  •    Apply for advance rulings from the RMCD;
  •    Seek alternative GST treatments from the RMCD (e.g. an alternative method of apportionment for partial exemption calculation);
  •    Appeal your GST dispute at the GST Appeal Tribunal.
(Please note that the list above is non-exhaustive)


Whether you are a multinational company with internal expertise on GST, or a local business without such experience, let us assist in reviewing your GST implementation programme and provide guidance in ensuring your business achieves the best outcome.

Click to download brochure