Budget 2017 Highlight Part 4 of 4

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02Budget 2017 Highlight – New proposal and changes affecting Goods and Services Tax Act (GSTA), 2014 for Goods and Services Tax (GST).

According to the recent announcement of Malaysia Budget 2017 on 21 October 2016, there are new proposal of legislation as below:

1. Additional: Gazetted Order – GST relief is given to valid disabled persons on the
purchase of approved equipment from the suppliers designated by the Social Welfare Department and expand more item in the list of equipment


2. Additional: Section 70 of GSTA – No GST to be charge under the Warehousing
Scheme on

• Goods from Principal Custom Area [PCA which consist of Licensed
• Manufacturing Warehouse (LMW), Excise Warehouse and Free Industrial Zone
• (FIZ)] that are deposited into and supplied within and between warehouse

3. Additional: Section 162(a) of GSTA – No GST in Free Zone (FZ) [consist of Free
Commercial Zones (FCZ) and Free Industrial Zone (FIZ)] as follows:

• Not chargeablesupply and removal of goods made within and between FCZsupply and removal of goods made within and between FICsupply and removal of goods made within FCZ and FIC

Not chargeable

• supply and removal of goods made within and between FCZ
• supply and removal of goods made within and between FIC
• supply and removal of goods made within FCZ and FIC

• Not due and payablegoods imported into FIZ

Not due and payable

• goods imported into FIZ

• GST suspendedremoval of goods from FZ to Designated Areas (which is Langkawi,Labuan and Tioman)removal of goods from FZ to an approved warehouse underWarehousing Scheme

GST suspended

• removal of goods from FZ to Designated Areas (which is Langkawi,
• Labuan and Tioman)
• removal of goods from FZ to an approved warehouse under
• Warehousing Scheme

Exceptional:

• Goods as prescribed under the Free Zones (Exemption of Goods and Services)
• Order 1998
• Goods and Services as prescribed under Goods and Services Tax (Impositionof
• Tax for Supplies in Respect of Designated Areas) Order 2014
• Any other goods prescribed by the Minister of Finance

Please refer to the below link for further details:

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