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Places You Didn’t Know Are GST Charged

Updated 19 Oct 2018 – By Loanstreet


While we know the major impact of GST on housing prices, and that places such as restaurants and supermarkets have them, there may be other places you didn't know would be GST charged as well. In this article, we're about to show you some of them!

1) ATM (Automatic Teller Machine)

Many people rush to the nearest ATM to withdraw the cash that's needed for their daily expenditures. Easy to access and convenient, rarely would one stop to check all the details on the little slip of receipt that's printed out.

Can you imagine taking out RM100 and be charged 6% (RM6) for GST? No, this is a misunderstanding! The tax will be levied on certain banking fees such as MEPS (Malaysian Electronic Payment System), not the actual withdrawal sum. For example, if a Public Bank cardholder withdraws from a CIMB ATM, the MEPS charge is RM1 and the GST rate will be RM0.06 no matter how much the withdrawal amount is.

Places You Didn’t Know Are GST Charged

2) Parking Facilities

For those who avoid parking inside a mall just because of few ringgits parking fee have more reason to do that now. Yes, we have to expect 6% increase in our parking fee. Family shoppers may not be too shaken out about this but whether this will lead to more double parking outdoors is debatable. Also, it may be handy to keep some of the loose change in the car to avoid getting back tons of coins when paying for the fee.

There have been reports that a car park operator at KL Wholesale Market in Selayang has already incorporated GST in its parking fees. Be aware of this as this may not be legal. It may just be one of the ways to charge extra.

3) Commercial & Residential Land / Building

We are aware that the supply of land used for residential house such as semi-detached house and condominium is exempted from GST. However, this doesn’t mean we should not expect a rise in housing prices. Raw materials are a huge part of the construction expenses and they are obviously subject to the tax. On the other hand, supply of land and building for commercial, administrative and industrial purpose such as office, small office home office(SoHo), hotel and factories are all exposed to GST.

Places You Didn’t Know Are GST Charged

4) Cinema Tickets

Bad news for movie fans! Yes, GST is now a part of your cinema ticket prices starting 1st April 2015. This means you have to fork out extra for your blockbuster hits. Some of you may have noticed there is currently an additional 25% Entertainment Duty charged per movie ticket and given to the Ministry of Finance. This duty was implemented in late October 2011.

On top of that Entertainment Duty, enter the GST. With 6% GST set to replace SST that is made up of Sales Tax (5%-10%) and Service Tax (6%), isn’t that great news? Wrong! Movie tickets were not subject to SST anyway. However, with additional 6% GST on top of the 25% Entertainment Duty, your total tax is now rounded up to a whopping 31%. 

To conclude

Hopefully, the idea of where GST can be found is clearer. If you'd like to learn more about GST, then check out our article on whether GST in Malaysia will be similar to Singapore's.

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