Non Taxable Supply

• Exempted Supply

• Out of Scope Supply (Supplies which are not subject to GST)
  - Supplies by non registered person
  - Supplies not in the course or furtherance of business
  - Supplies made outside Malaysia
  - supply below threshold (supplies by hawkers)
  - Supply of service by employer to his employee - supply for employment purpose
  - supply by statutory bodies and local authorities with respect to regulatory and enforcement functions
  - Supply by Government (No GST)

- Federal and State Government
- e.g: Assessment, licenses, penalty

• Subject to GST
  Water supply
  Broadcast (RTM)
  Prison department
  Sabah State railway
  rental of sports complex, parking services, garbage collection

• Other 'Non-taxable' supply (GST is not applicable and Input Tax Claimable)
  - Gift below RM 500 & Sample
  - Token, Stamp (excluding postage) & Voucher
  - Pension, provident or social security fund
  - Supply by any society to member without payment (membership)
  - Supply by any society to sponsor (of no commercial value)
  - Subsequent supply of blocked input supply
  - Insurance indemnity settlement
  - Diplomatic and consular services by foreign mission
  - Supply of goods or services under Islamic financial arrangement other than the provision of financing

Royal Custom Website
http://gst.customs.gov.my/en/ib/Pages/ib_tag.aspx