The Government has announced the reduction of the GST rate from 6% to zero % on all goods and services supplied on or after 1st June 2018.
However this does not mean GST is abolished from 1st June 2018. Businesses will still required to comply with the requirements of GST Act 2014, especially on the duty to submit GST returns until further notice by the authorities .
The Government has announced that GST will be replaced by Sales and Services Tax (“SST”) and the SST will come into effect 2 to 3 months after June 2018.
However at this stage it is not clear whether the SST would be in the form before the introduction of GST on 1st April 2015. Previously the sales tax was generally 5% or 10% of factory price or import value, and service tax was 6%. On the issue of registration thresholds, previously service tax had various registration thresholds ranging from RM3 million for restaurants to zero for professional services.