Introduction to GST – Part 3

  • Who needs to register?

Any person or business who makes taxable supply of goods and services  is liable to register. Registration is mandatory for businesses whose taxable turnover has exceeded the prescribed threshold limit. The proposed threshold limit is RM500,000.

What is the Taxable Turnover?

The taxable turnover includes:

  • Standard-rated supplies
  • Zero-rated supplies
  • Deemed supplies (such as private use, fringe benefits, etc)

The taxable turnover excludes:

  • Exempt supplies
  • Sale of Capital Assets
  • Imported services

How to calculate the turnover?

Calculation of turnover for registration is based on the total value of the taxable supplies for a 12-month period. The liability to register is determined by:

  • Historical turnover – based on the turnover of the current month and the preceding 11 months or
  • Future turnover – based on the turnover of the current month and the next 11 months.

Voluntary registration

Businesses who fall below the threshold limit may apply for voluntary registration. Once a business is registered, it must remain in the system for at least 2 years.

Registration period

The taxable person or business is required to register within 28 days of the relevant month. The effective date of the registration will be on the 1st day of the following month.

Pre-registration

Pre-registration application shall be made 3 months before GST implementation. Exercise for early or pre-registration to begin 6 months before GST implementation date.

Group registration

There is a facility to allow related companies to account GST in a group, subject to a control of more than 50% equity. Prior registration for the individual company is necessary.

Each member of the group must make wholly taxable supplies. Incidental financial supplies to be treated as taxable supplies. Supply between members is generally disregarded. An elected representative member for the group is to account for the taxable supplies made by or to a member of the group.

Divisional or Branch Registration

There is a facility for a branch or division to register separately. The branch or division shall have a self-accounting unit in order to register. The branch or division shall be separately identifiable by reference to the nature of business. Every separately registered branch or division has the same taxable period.

Deregistration

If a taxable person  or business fulfill the required conditions, he is required to deregister.

  • Mandatory deregistration when the business ceases
  • To notify the tax authorities within 30 days after the cessation of business

About this entry