At the 2015 Budget announcement in October 2014, our Prime Minister Datuk Seri Najib
Tun Razak had announced the implementation of Good and Service Tax (GST) effective
1 April 2015. GST is a new tax system gazetted on 19 June 2014 with the standard
rate fixed at 6%. It is a consumption based tax imposed on the sale of goods and
services, which is to replace the existing Sales Tax (10%) and Service Tax (6%).
In GST, a product or service is either standard-rated or zero-rated; and exempt
and out of scope supplies are not taxable. (For list of exempted supplies, kindly
visit the eFederal Gazette website at
www.federalgazette.agc.gov.my). Information communications technology (ICT)
industry has been identified as an item in the standard-rated category.
Packet One Networks (Malaysia) Sdn Bhd, P1, recognized as a service provider under
the telecommunications and ICT industry, had officially registered with the Royal
Customs Malaysian Department with GST registration number of 000399921152.
There was zero tax levied on P1’s offerings before GST and hence, there will be
an additional charge of 6% tax on all taxable goods and services supplied by P1
effective 1st April 2015.
For a better understanding on how GST is imposed on P1 services, kindly visit the
Frequently Asked Questions in www.p1.com.my.