These are taxable supplies that are subject to a zero rate. Businesses are eligible to
claim input tax credit in acquiring these supplies, and charge GST at zero rate to the consumer.
How GST works on a zero rated supply :
How GST works on a zero rated supply at the wholesale level :
Computation of GST on zero rated supply :
|
Level of supply
|
Sales price(including GST at 6%) |
Payment to Government |
| Wholesaler |
Sales price = RM100.00
GST = RM0.00
Total sales price = RM100.00 |
GST collection = RM0.00
Less: GST paid =RM0.00
GST payable = RM0.00 |
| Retailer |
Sales price = RM125.00
GST = RM0.00
Total sales price = RM125.00 |
GST collection = RM0.00
Less: GST paid =RM0.00
GST payable = RM0.00 |