Are you GST ready?

GST is a broad based multi-staged consumption tax covering all sectors of the economy, levied on the supply of goods and services at every stage of the supply chain from the supplier up to the retail stage of the distribution. In short, GST has an implication on all business operations, whether they are small or large businesses operating in Malaysia cum 1st April 2015.

GST readiness basic checklist:

• Understand GST framework and mechanism: Although the general principles and concepts of GST are the same for many countries, you advised to understand the GST requirements as provided in the GST Act, 2014 and other supplementary acts; and agreed practices and guidelines provided by the Royal Malaysian Customs (RMC) http://gst.customs.gov.my/en/rg/Pages/rg_sg.aspx
• GST impact study: Review and identifying business transactions affected by GST implementation. Refer to RMC industry guide: http://gst.customs.gov.my/en/rg/Pages/rg_ig.aspx
• Transitional provisions: Understand and prepare the necessary transitional arrangements moving into the GST era on 1 April 2015. Sales and Services Tax will be abolished from 1 April 2015.
• Preparation for GST: Registration (mandatory registration deadline is 28 February 2015), staff training, IT system readiness,  familiarisation of accounting double entries affecting GST, mapping accounting chart of accounts and transactions to recommended GST tax codes.
• GST reporting and reconciliation: Reconcile and balance all GST figures in your GST-03 return form with accounting data

Next: GST framework and mechanism