1/4/2015 is importance date to implement GST, therefore, all business have encounter a GST transitional period to GST era.

1. GST Transitional
Period
Loh Boon How
Chartered Accountant

2. When to pay sales tax?
1. If a sales tax licensee is not a GST registered person.
a. Raw materials and component held on 1/4/15,
b. Finished and semi finished held on 1/4/2015,
c. Supplies before 1/4/2015, but invoice and payment before
1/4/2015
B. H. Loh & Associates
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3. When to pay sales tax?
• Submit the sales tax return CJP 1 not later 28/4/2015
2. If sales tax licensee is a GST registered person on 1/4/15,
there will no liability to account sales tax.
B. H. Loh & Associates
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4. When to pay service tax?
a. The unpaid service tax amount exceeding 12 months from
the date of invoice,
b. The service tax in last taxable period,
c. Supplied before 1/4/2015, but the invoice and payment on
or after 1/4/2015
B. H. Loh & Associates
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5. When to pay service tax
• The tax return submitted on :
a. The latest 28/4/2015 – Form CJP 1,
b. Not exceed 12 months period from 1/4/2015 – Lampiran H
B. H. Loh & Associates
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6. What is bad debt relief and
subsequent received?
B. H. Loh & Associates
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Bad debt relief is claimable in 6 years
Sales tax
paid
1/1/2015 1/4/2015
Subsequent
collect to
account sales tax
1/7/2015
GST
implementation

7. What if goods sold before 1/4/15
but return after 1/4/15?
B. H. Loh & Associates
• The manufacturer can claim sales tax refund
by using the form JKED 2,
• The good return due to the wrong quantity,
poor quality or uncontract good.
Sales tax
paid
Good
return
GST
implementation
7 1/1/15 1/4/15 1/6/15

8. What if service perform before
1/4/15 but terminate after 1/4/15?
B. H. Loh & Associates
• The service provider can claim service tax
refund by using the form JKED 2
Refundable within 6 years from the services tax paid
Services tax
paid
Issued credit
note for
Service
terminate
GST
implementation
1/1/15 1/4/15 1/6/15 8

9. What is progressive supply?
B. H. Loh & Associates
9
Sales &
services
tax
Supply of goods
and services
Scenario 1
Payment received
/ invoice issued
1/3/15 1/4/15 1/5/15

10. What is progressive supply?
B. H. Loh & Associates
Goods and
Services tax
Payment received /
invoice issued
Scenario 2
Sales &
services
tax
Progressive supply of goods and services
1/3/15 1/4/15 1/5/15 10

11. What is progressive supply?
B. H. Loh & Associates
11
Goods and
Services tax
Supply of goods
and services
Payment received
/ invoice issued
Scenario 3
1/3/15 1/4/15 1/5/15

12. What is progressive supply?
B. H. Loh & Associates
Sales &
services
tax
Payment received
/ invoice issued
Scenario 4
Goods and
Services tax
Progressive supply of goods and services
1/3/15 1/4/15 1/5/15 12

13. What is special refund?
1. The register mandatorily,
2. The good held on 1/4/2015,
3. The goods are subject to sales tax and services
tax,
4. Holding the relevant supplier’s invoice (Prove
of the recipient of the goods),
5. Holding the import document (Prove the
importer is the owner of the goods).
B. H. Loh & Associates
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14. What is special refund?
B. H. Loh & Associates
14
• If the claimant unable to show proof that
sales tax has been paid on 1/4/2015.
Example : Sales tax not stated in the invoice
Special refund = purchase price x 20% x sales
tax rate applicable
20% method

15. What is special refund?
No Stock value Certified
(a) Less that
RM10,000
The audit certificate issue by
chartered accountant
(b) More that
RM10,000
The audit certificate issued by
company auditor
B. H. Loh & Associates
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Stock count – identified the sales tax paid
• Submit within 6 months from 1/4/2015 through Tax
Access Point, only one time with no correction
allowed

16. How does special refund work?
• The special refund will be off-set against unpaid
sales tax, services tax, GST and other taxes. The
balance will be refunded on a quarterly basis
over 2 years.
• If discover, false, inaccurate, misleading or
misrepresented, the DG may withhold the
unpaid refund
B. H. Loh & Associates
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17. What is special refund
subsequently return?
• If the claimant refunded and subsequently
returns, he must account for output tax. Failing
to account for return will subject to penalty.
B. H. Loh & Associates
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18. What goods not entitled to
special refund?
• Goods used for packing materials, label
• Raw materials directly used in finished goods,
such as : textile and buttons,
• Goods held for hire, Such as generator,
• Goods for hobby,
• Goods not for sales, such as : stationery, cleaning
• Capital asset
• Goods purchase with sales tax and subsequently
exported,
• Goods entitled to claim sales tax deduction
B. H. Loh & Associates
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19. When does contract supply charge
GST?
• No opportunity to review – on or after the
introduction of GST with 0 rated supply for a
period of 5 years
B. H. Loh & Associates
5 years
GST
charge
No GST charge 0 rated
1/6/12 1/4/15 31/3/2020 19

20. When does contract supply charge
GST?
• An opportunity to review – the supply will be
subject to GST when the review opportunity
arise
B. H. Loh & Associates
Review opportunity
No GST charge charge
0 rated
GST
1/6/12 1/4/15 31/5/16 20

21. Thank you
B. H. Loh & Associates
Address :
No. 1-3-15, Goldhill Complex,
Tingkat Paya Terubong 1,
11060 Penang.
H/P No. : 016-4893382
Email : bhlohass@gmail.com
Web-site / facebook : bhloh.com.my
B. H. Loh & Associates 21