GST returns must be submitted to the GST office not later than the last day
of the following month after the end of the taxable period.
Taxable period is a regular interval period where a taxable person is liable
to account and pay to the government his GST liability. The standard taxable
period is on quarterly basis. However, a registrant may apply to be placed in
other taxable period (monthly or 6 monthly) subject to specific conditions as
follows:
| Categories |
Periods |
Conditions |
| Standard Taxable Period |
Three months |
- Applicable to all taxable turnover not exceeding RM5 million
|
| Non-standard Taxable Period |
One month |
- Applicable to taxable persons with annual taxable turnover exceeding RM5
million
- Applicable to other taxable persons on request and subject to approval
|
| Six months |
|
Input tax credit mechanism
Businesses have to charge and collect GST on all taxable goods and services
supplied to the consumers. Only businesses registered under GST can charge and
collect GST. Businesses are allowed to claim whatever amount of GST paid on the
business inputs by offsetting against the output tax.
- The excess amount of output tax shall be remitted to the government
within the stipulated period.
- In the case where the amount of input tax cannot be fully recovered,
businesses can make a claim for refund from the government.
Notes:
- Maximum time period to claim the input tax is 6 years from the date of
supply.
- Input tax credit cannot be claimed on blocked input such as GST paid on
passenger motor car, club subscription fee, medical and personal accident
insurance premium, medical expenses, family benefits, entertainment expenses
except for employees and etc.
- Apportionment rules have to be applied when the taxable person makes a
mixed supply.