GST Zero-rated supplies

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