Starting June 1, 2018, Goods and Services Tax (GST) in Malaysia is set to reduce from 6% to 0%.

To be compliant with the change in GST rate, you must update your existing GST rate from 6% to 0% on the midnight of May 31, 2018.

Optionally, if your list price for services and products includes the GST rate of 6%, you can consider updating the price of each service and product to reflect the GST rate change.
Example: If the list price of a Green Tea Shampoo is 100 ringgits inclusive of 6% GST, after the GST tax rate change, you can change the price to 94.36 ringgits (at 0% GST).

In this article, you will learn how to update your tax rate from 6% to 0% and also how to update the price of your services and products.

To update your tax rate from 6% to 0%

1. Ensure that you are at the organization level.
2. Navigate to Admin > Setup > Tax Groups.
    The Manage Tax groups page opens.

3. Click the tax group name you created for GST.
    The tax group details opens.

4. Click the Component tab.  
     The existing tax components and an option to add additional tax components
      appears.

5. Locate your existing tax component and change the TAX (%) from 6 to 0.

   Important: You do not have an option to save the changes in the Component tab.

6. Click the Centers tab.
     The list of centers appears.

7. Ensure all your centers that are located in Malaysia are selected and click Save.
    You have successfully updated your existing GST rate from 6% to 0%.

Update Price of a Service

If the list price for your services includes the GST rate of 6%, you can consider updating the price of each service to reflect the GST rate change.

To update the price of a service

  1. Navigate to Admin > Resources > Services.
  2. From the list of services, click the service whose price you wish to update.
    The service details appear.
  3. Click the Price tab.
  4. Change the Sale Price as required.
  5. Click Save.
    The price of the service is updated.

Repeat steps 2 to 5 for all other services whose price you wish to update.

Update Price of a Product

If the list price for your products includes the GST rate of 6%, you can consider updating the price of each product to reflect the GST rate change.

To update the price of a product

  1. Navigate to Admin > Resources > Products.
  2. From the list of products, click the product whose price you wish to update.
    The product details appear. 
  3. Click the Price tab.
  4. Change the Sale Price as required.
  5. Click Save.
    The price of the product is updated.

Repeat steps 2 to 5 for all other products whose price you wish to update.

See Also

Transitioning to Zero Rated GST: FAQ

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