1. www.iTrainingExpert.com 1 General Concept of GST Business Finished Goods (Sales) INPUT OUTPUT GST on inputs = Input tax Claimed input tax Purchase of Raw materials, Component parts Machineries, equipment Rent - factory Audit fees, Tax fees, Company Secretary fees Manufacturer Goods Service It’s a multi-level consumption tax => “Pay as you consumed” Actual Business Tax point of view

2. www.iTrainingExpert.com 2 General Concept Types of SupplyOutput TaxInput Tax Standard Rated6%6% Claimable Zero Rated0%6% Claimable ExemptedNo6% Not Claimable Out of ScopeNoNot Claimable Taxable Supply Non Taxable Supply Before Delivery Full / Part Payment Tax Invoice Issued After Delivery Whichever is earlier 21 days Rule Apply Please issue tax invoice on time to avoid penalty

3. www.iTrainingExpert.com 3 Time of Supply – 21 Days Rule Tax Point Change Back to Basic 20 Apr 15 10 May 15 Issue of Tax invoice within 21 days File tax return on 30 Jun 15 Tax Points (Basic) Tax Points (Actual) 20 Apr 15 12 May 15 Issue of Tax invoice in 23 days File tax return on 30 Jun 15 Tax Points (Basic) Tax Points 31 May 15 Incorrect Tax Return: Penalty: RM50K or 3 years Imprisonment or both Incorrect Tax Return: Penalty: RM50K or 3 years Imprisonment or both ≤ 21 days > 21 days Request: Issue “Tax Invoice” and send to Client immediate after delivery