Domestic Trade, Consumerism and Cooperatives Ministry enforcement director-general Datuk Roslan Mahyuddin painted this scenario with the 6% GST being zerorised from 01 Jun 2018.
(The zerorised rate means that no GST is charged for goods and services that previously was charged the 6% rate.)
Local air travel is also expected to increase between 5% to 10% during this period.
All registered business entities have to comply with the GST rate adjustment to 0%. All registered businesses are still subject to all existing rules including those related to tax invoice, submission of tax return within taxable period and claims of input tax credit.
The government has further announced that the GST will be replaced and abolished by the sales service tax (SST) on 1st September 2018.