eKTP 20

GST Input Tax Credit
Part 1


A person is entitled to claim input tax if he is making a taxable supply and satisfies the following criteria:

(a) input tax has been incurred;
(b) input tax is allowable;
(c) he is a taxable person, i.e. a person who is or is liable to be registered;
(d) goods or services acquired in the course or furtherance of business; and
(e) goods or services made in Malaysia or any supply made outside Malaysia which would be a taxable supply if made in Malaysia.

Tax code used : TX (TX-CGA for capital goods acquired), IM, TX-E43, TX-N43,TAX-RE,AJP

Non- Claimable Input Tax

Generally, a taxable person is entitled to claim GST on inputs attributable in making taxable supplies.

The following persons are not entitled to claim input tax.
(a) a non-registered person making taxable supplies
(b) a person making an exempt supply;
(c) a person making an out of scope supply

Tax code used : NR, EP, OP, ZP

Blocked Input Tax

Input tax incurred by a taxable person in respect of the following supplies shall be excluded from any credit under GST:

  1. Supply or importation of a passenger motor car but does not include:

    • Public service vehicle licensed under Suruhanjaya Pengangkutan Awam Darat Act 2010, Commercial Vehicles Licensing Board Act or tourism vehicle licensed under Tourism Vehicle Licensing Act 1999

    • Dealer of motor cars licensed under the Second-Hand Dealers Act 1946;

    • Approved vehicle used for driving instructional purposes by a driving school or driving institute permitted under Motor Vehicles (Driving Schools) Rules, 1992;

    • The stock in trade of a motor manufacturer or a motor dealer; and

    • Any motor car which is used exclusively for the purposes of business as may approved by the Director General

  2. the supply of goods or services relating to repair, maintenance and refurbishment of a passenger motor car.

  3. Hiring of a passenger motor car;

  4. Club subscription fee;

  5. Medical and personal accident insurance premium or takaful contribution;

  6. Medical expenses;

  7. Family benefits;

  8. Entertainment expenses to a person other than employees or existing customers except entertainment expenses incurred by a person who is in the business of providing entertainment .

Tax code used : BL