Following The Tabling Of Budget 2015, The Government Has Named More Than 900 Items That Will Be Zero-Rated Or Exempted From The Goods And Services Tax (GST), Which Is To Be Implemented In April 2015
The publication of two orders by the Attorney General's Chambers – the Goods and Services Tax (zero-rated supply) Order 2014 and the Goods and Services Tax (exempt supply) Order 2014 was put up late today following an announcement by second finance minister Datuk Seri Ahmad Husni Hanadzlah (pic) that GST-related items would be gazetted today.themalaysianinsider.com
Two Terms To Learn Before We Dive Into The List: Zero-Rated Supply And Exempt Supply. Zero-Rated Supply Items Are Free From GST All Along The Value Chain From Suppliers To Consumers While Exempt Supply Items Only Apply To Consumers
1. As Confirmed By PM Najib Razak In Budget 2015, RON95, Diesel And LPG Will Be Exempt From GST
The supply of raw materials and components made to a person who belongs in a country other than Malaysia for the treatment and processing of goods by any taxable person under the Approved Toll Manufacturer Scheme.
2. Fresh and Dried Food Items, Such As:
Meat items - live, fresh, chilled or frozen - from cows, swine, sheep and goats, chicken, ducks and geese. Seafood items include fish (live, chilled, fillet, dried, salted, smoked and soaked in brine) as well as lobsters, prawns, crabs, oysters, scallops etc.
Eggs as well as a variety of vegetables (e.g. potatoes, tomatoes, onions, shallots, garlic, leeks, cabbages, cauliflowers, lettuce, carrots, cucumbers, peas, mushrooms, and spinach) and fruits (e.g. coconuts, bananas, dates, apples, oranges, pineapples, avocados, guavas, mangoes etc.)
Coffee, tea, rice, flour, cooking oil, noodles, pasta, bread, biscuits, sugar and salt, as well as an array of spices including but not limited to pepper, cinnamon, nutmeg, cloves, ginger and turmeric.
3. Printed Materials For Reading And Educational Purposes And Stationery Including:
Printed books, dictionaries, encyclopadias, newspapers, journals, periodicals, text books, reference books, religious text, as well as children's picture, drawing and colouring books.
Registers, account books, note books, receipt books, letter pads, diaries, exercise books, binders, folders etc.
4. Utilities, Such As Water Supply And Electricity (The First 300 Units Of Usage)
The supply of treated water by a person who is licensed under the Water Services Industry Act 2006 to domestic consumers irrespective of minimum or non-usage, excluding distilled water, de-ionised water, oxygenised water, and mineral water.themalaysianinsider.com
The supply of the first 300 units of electricity to domestic consumers irrespective of minimum or non-usage for a minimum period of 28 days as per billing cycle.
1. Healthcare Services, Including 2,900 Brands Of Essential Medicine
Any medical, dental, nursing, midwifery, allied health, pharmacy and ambulance services provided by healthcare professionals, hospitalisation, as well as screening, diagnosis, or treatment for those suffering from any disease, injury or disability of mind or body.
Exemptions are also given for services for preventive or promotive health purposes, for curing or alleviating any abnormal condition of the human body by the application of any apparatus, device or any other medical technology, and mortuary services.
2. Educational Services, Including Private Childcare, Ranging From Pre-School To Secondary And Tertiary Education As Well As Religious Schools
Food and drinks supplied by canteen operator in government, government-aided or private preschool, primary and secondary schools are also exempted, alongside course materials, field trips, provisions of food and accommodation, students' transportation, and examination services.thestar.com.my
3. Financial Services, Such As Savings And Current Accounts, Loans And Advances, Currency Exchange Services, Life Insurance, As Well As Trading In Bonds And Securities
However, the exemptions do not apply to any fees, commission, merchant's discount or similar charges during the usage of these financial services.
4. Investments In Gold, Silver And Platinum In The Form Of A Bar, Ingot Or Wafer, Provided They Fulfill Investment Characteristics
Gold, silver and platinum coins are also included in the exemption.
5. Public Transport Services And Tolled Highways
Full Lists Of Items For Both Categories Are Available On The Government's Federal Gazette Page
We're only days away from the implementation of the much-dreaded 6% GST. Time is ticking, so you'd better get to doing some of these before 1 April 2015: