Implementation in SAP-SRM

Goods & Service Tax (GST) Overview

1. GST is a tax on domestic consumption of goods & services which will

replace existing Sales & Service Tax (SST).

2. GST is paid when:

i. Goods and services are purchased from GST registered vendor on

standard rated supplies

ii. Goods are imported into Malaysia

3. Effective Date : 1st April 2015

4. GST Rate : 6%

5. GST can be billed to TM under the following conditions:

i. Supplier is GST registered with TM

ii. Goods delivered or service rendered after 1st April 2015 on standard

rated supplies

(what change is required in the system in order to achieve the to-be process)

Go to tab ‘Tax

Information’

Go to tab ‘Tax

Information’

Fill up the GST number and Date

(obtained from Malaysian Royal

Customs)

Upload/Attach the GST approval letter Upload/Attach the GST approval letter

(obtained from Malaysian Royal

Customs)

3

GST Update in SUS Portal

Go to tab ‘Additional

Company Data’

Go to tab ‘Additional

Company Data’

Submit Changes

Impact of GST to SUS Invoice

Invoice for PO

Registered Vendor with TM

Invoice for PO:

1.Price is NOT inclusive

sales tax (only gross price).

2.Have 6% tax value/amount.

3.GST indicator is ticked in

SUS.

Note: Only applicable for GST

Registered Vendor with TM

1st Apr 2015

GR date before GST GR date after GST

Invoice for PO:Invoice for PO:

1. Price is inclusive of

sales/service tax (if

applicable).

2. No tax value/amount.

3. GST indicator not ticked

in SUS Portal.

No

Scenario for GST registered

supplier with TM

Purchase

Order

Goods Receipt / Service

Acceptance

GST is

charged in

invoice?

1 PO issued & Goods/Service

delivered before 1st Apr. 2015 No GST

User to enter actual

Document Date before 1st

Apr. 2015

No

2

PO issued before 1st Apr. 2015

& Goods/Service delivered

after 1st Apr. 2015

No GST

User to enter actual

Document Date after 1st

Apr. 2015

Yes

3

PO issued after 1st Apr. 2015

& Goods/Service delivered

before 1st Apr. 2015

Have GST

User to enter actual

Document Date before 1st

Apr. 2015

No

4 PO issued & Goods/Service

delivered after 1st Apr. 2015 Have GST

User to enter actual

Document Date after 1st

Apr. 2015

Yes

GST Impact to Purchase Order & Delivery

Document Date : The actual date of receipt of goods and services as per the Delivery Order/ Service Acceptance .

Posting date is normally date of data entry and can differ from Document date.

1st April 2015

PO

issuance

Goods/Service

delivery

Goods/Service

delivery PO

issuance

Goods/Service

delivery

Goods/Service

delivery

GST is NOT

charged in

invoice

GST Impact to Purchase Order & Delivery

GST is NOT

charged in invoice

GST is

charged in

invoice

GST is charged in

invoice

Note: Applicable if supplier is GST registered

with TM and the supply is standard rated

Frequently Asked Questions (FAQ)

No Question Answer

1 Is GST part of TM contract value ? No, GST amount is NOT part of contract value and will NOT

be deducted from the contract.

2 Is additional budget for GST required

for project or cost centre ?

No, additional budget is not required as the GST is not

charged to the project or cost centre as TM will offset the

GST charged by suppliers against the output tax.

3 Does supplier need to add GST

amount in Bill of Quantity (BOQ) for

new project after 1st April 2015?

No. All unit prices must exclude GST amount. GST will be

added on to PO price provided the company is GST

registered with TM and the supply is standard rated.

4 If PO issued before 1st April 2015 and

goods or service delivery are after 31

March 2015, what will happen to

invoice submission with GST 6%?

Whether supplier should charge GST shall be determined

based on the delivery of goods or services regardless of PO

issuance date.

Vendor can still claim GST even though the PO value did not

include GST as long as the goods or services were delivered

after GST period.

5 Do all invoices submitted to TM (by

GST registered supplier) from 1st April

2015 be inclusive of GST 6% ?

Not all invoices to TM from 1st April is subject to GST. It will

depend on when the goods and services were supplied or

rendered. If it is before GST period, the invoices should not

include any GST. GST only applies to goods and services

delivered after GST period.

SUS Invoice Before GST

GST indicator not

tick Net Value is a price Net Value is a price

inclusive sales tax

No tax value No tax value

No GST

Component

SUS Invoice After GST

Net Value is a price Net Value is a price Net Value is a price Net Value is a price Net Value is a price Net Value is a price Net Value is a price Net Value is a price

NOT inclusive NOT inclusive NOT inclusive NOT inclusive NOT inclusive NOT inclusive NOT inclusive NOT inclusive of of of of of of of of

sales sales sales sales sales sales sales sales taxtaxtaxtaxtaxtaxtaxtax

(only gross price)(only gross price)(only gross price)(only gross price)(only gross price)(only gross price)(only gross price)(only gross price) Have 6% tax Have 6% tax Have 6% tax Have 6% tax Have 6% tax Have 6% tax Have 6% tax Have 6% tax

value/amountvalue/amountvalue/amountvalue/amountvalue/amountvalue/amountvalue/amountvalue/amount

GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is GST indicator is

autoautoautoautoautoautoautoauto--------ticked for ticked for ticked for ticked for ticked for ticked for ticked for ticked for

GST VendorGST VendorGST VendorGST VendorGST VendorGST VendorGST VendorGST Vendor

GST Component GST Component

exist

Note: Applicable if supplier is GST registered with TM and the

supply is standard rated

Purchase Order (PO) After GST

GST ID

GST Rate

Note: Applicable if supplier is GST registered with TM and the

supply is standard rated

Need Assistance?

Please visit SRM page at TM Corporate Website : www.tm.com.my Online Help Supplier Relationship Management Supplier Enquiry Form

Thank You