Understanding GST Tax Codes - Part 9

Deemed Supply - DS

Goods supplied without consideration attracts GST. For example, goods removed from business for own consumption or private use by a business owner is deemed to have supplied by the business to the owner. Private use of business assets will also attract GST. Gifts below RM500 are not subject to this rule.



However, services provided free of charge is NOT subject to GST UNLESS it is provided to a connected person. The definition of "connected persons" is appended on the Third Schedule of the GST Act.

Description	Dr.	Cr.	Tax Code
Deemed Supplies	Amount owing by owner
		GST - Output Tax	DS
		Sales

OS

This tax code refers to supplies which are outside the scope of the proposed GST model and GST is therefore not chargeable. This is commonly known as out-of-scope supply. Examples:

• transfer of business as a going concern, 
• private transactions, 
• third country sales (i.e. sale of goods from a place outside Malaysia to another place outside Malaysia)

Description	Dr.	Cr.	Tax Code
Out of Scope Supplies	Trade Receivable		OS
Sales of goods from China to		Sales
Singapore without coming into Malaysia

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