Jewellery Manufacturers - GST Exempted or Zero Rated

The AJS is introduced under the GST Act 20XX to help jewellery 
manufacturers, including toll manufacturers, overcome cash flow problem created by huge input tax payments coupled with slow or no output tax collections. 

Under the GST Act, tax charged on supply of precious metals made by a 
taxable person (supplier) to a jewellery manufacturer (approved jeweller) under the AJS will become the liability of the manufacturer and not the supplier. Hence, the supplier does not have to account for output tax on such supply. On the other hand the approved person is not obliged to pay the tax to the supplier but shall account for payment of GST on the supply. 

When such prescribed precious metals are subsequently manufactured into 
finished goods and supplied as jewellery to the local market, the approved jeweller 
has to account for output tax. If such finished goods are exported, they are to be 
zero-rated. 

Jewellery is not defined under the GST Regulations. However, it includes 
ornaments such as bracelets, necklaces, rings, bangles or earrings made of precious metals, set or mounted with gems or imitation gems that have high economic or commercial value. 

Definition of “prescribed precious metals” 
10. The definition of prescribed precious metals as defined under the GST 
Regulations refers to: 
(i) Gold which contains at least 99.5% in purity; 
(ii) Silver which contains at least 99.9% in purity; and 
(iii) Platinum which contains 99% in purity. 

When to account for output tax 
11. The time of supply for an approved jeweller is the earlier of the following: 
(i) when he receives the related invoice, or 
(ii) when he makes payment to the supplier


For more details about Jewellery ERP, Or GST Software, please contact Bifrost Tech Sdn Bhd at 04-6459769 / 04-6384789 or email to our support team at support@bifrostech.com or visit our website at http://www.bifrostech.com

Penang GST - Zero rated GST

These are taxable supplies that are subject to a zero rate. Businesses are eligible to claim input tax credit in acquiring these supplies, and charge GST at zero rate to the consumer.

How GST works on a zero rated supply :

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Penang GST

For more details about GST Software, please contact Bifrost Tech Sdn Bhd at 04-6459769 / 04-6384789 or email to our support team at support@bifrostech.com or visit our website at http://www.bifrostech.com

Penang GST - Malaysia Standard Rated GST

In Malaysia’s Budget 2014 speech, the implementation of Goods and Service Tax (GST) was perhaps the hottest topic. To be introduced in April 2015, it will replace Malaysia’s Sales tax (10%) and Service tax (6%). Under GST, most of the goods and services (except basic necessities) will be charged a tax rate of 6% at every stage of the supply chain. The question now on everyone’s mind – How will life be after GST?

To identify the most likely effects, we must first understand the different implementations of GST and their mechanisms.

Types of GST

There will be three different categories of goods & services under the GST scheme in Malaysia. They are:

I. Standard-Rated GST

Goods and services in this category will be charged a tax rate of 6% at every stage of the supply chain. The tax is billed and collected by businesses and paid to the government. Every party except the final consumer can claim back credits on the GST they already paid (known as input tax). Examples of the goods in this category are cloth, car and fruits. The following diagram shows how Standard-Rated GST works:

For more details GST Software, please contact Bifrost Tech Sdn Bhd at 04-6459769 / 04-6384789 or email to our support team at support@bifrostech.com or visit our website at http://www.bifrostech.com