eKTP 32

Budget 2017 Highlight
Part 4 of 4


Budget 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

  • 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 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 payable

    • goods imported into FIZ

  • 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


  • 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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