GST Rate of 0.1%: A Comprehensive Guide
In Malaysia, the Goods and Services Tax (GST) is a broad-based consumption tax that is imposed on the supply of goods and services. The GST rate is set at 6%, but there are certain items that are exempted or subject to a lower GST rate of 0.1%. In this article, we will discuss the items that fall under the 0.1% GST rate category.
What is the 0.1% GST Rate?
The 0.1% GST rate is a reduced rate of GST that is imposed on certain goods and services. This rate is lower than the standard GST rate of 6% and is applicable to specific items that are essential or of national importance.
Goods Subject to 0.1% GST Rate
The following goods are subject to the 0.1% GST rate:
a. Agricultural Products
- Rice
- Sugarcane
- Wheat
- Paddy
- Fresh fruits and vegetables
- Livestock and poultry
b. Pharmaceuticals
- Medicines and medical devices
- Vaccines
- In vitro diagnostic reagents
c. Education
- Educational materials such as books, journals, and magazines
- Tuition fees for educational institutions
d. Healthcare
- Healthcare services provided by licensed healthcare professionals
- Hospital services
- Medical consultation fees
e. Financial Services
- Basic savings accounts
- Savings accounts for individuals with disabilities
- Islamic banking services
Services Subject to 0.1% GST Rate
The following services are subject to the 0.1% GST rate:
a. Public Transportation
- Bus and train services
- Taxi services
b. Funeral Services
- Funeral services provided by licensed funeral parlors
- Cremation services
c. Social Services
- Welfare services provided by non-profit organizations
- Charitable services
Conclusion
In conclusion, the 0.1% GST rate is a reduced rate of GST that is imposed on certain essential goods and services. This rate is applicable to items such as agricultural products, pharmaceuticals, education, healthcare, financial services, public transportation, funeral services, and social services. It is essential for businesses and individuals to be aware of the items that fall under this category to ensure compliance with GST regulations.
