FAQ for Goods and Services Tax (GST)

FAQs for Goods and Services Tax (GST)

As many of you may already be aware, the Government will be introducing the Goods and Services Tax (GST), which will be implemented on 1 April 2015. Essentially, GST is a 6% tax that will be incurred on all items consumed in Malaysia (except for items specifically zero-rated or exempted by the Government), and will replace the current Sales and Service tax, where only selected items are subjected to the 6% tax.

So, how will GST impact you as a customer? Below are some of the key things you need to know:


  1. When I register a new prepaid SIM pack, will I be charged for GST and how much will it be?
    You will not be charged GST when you register a new prepaid line, as there is no registration fee.
  2. How much will a prepaid SIM pack cost, now that I am charged for GST?
    The price of a SIM pack will now cost RM10.00, inclusive of GST.
  3. What are the prepaid products and services that are subjected to GST?
    All telecommunication charges are subjected to GST, except for roaming charges which are non-taxable. Since GST is deducted upon top-up, for roaming charges, GST will be refunded to the customer accordingly.
  4. Are all top-ups subjected to GST? If no, which top-ups are excluded from GST?
    Yes, all physical or e-reload top-ups are subjected to GST.
  5. How do you charge GST for prepaid calls, SMS and internet?
    All top-ups are sold inclusive of GST. GST is charged upon activation of each top-up. For example, RM10 top-up will have airtime of RM9.43 The GST paid by customers will be collected and remitted to Customs, in accordance with the GST Law and guidelines for all goods and services consumed.
  6. Why there is no tax invoice issued for purchasing top up at retailers?
    GST is applied upon activation of top-up tickets and it can be verified via e-statement. Therefore, there is no tax invoice issued upon purchase of top-up tickets. Instead, a receipt is issued to the customer. There is no requirement for the GST registration number of Maxis to be stated on the receipt. To claim for input tax credit, you may use your Hotlink e-statement which will record the GST deducted at the point of activation. You may download your Hotlink e-statement via your MyHotlink account at www.hotlink.com.my or Hotlink RedApp.
  7. The Government recently made an announcement during Budget 2016 in October that Malaysian consumers will receive rebates equivalent to the amount of GST paid, which will be credited directly to their prepaid accounts. When will this be effective?
    Until 31 December 2016, a rebate will be credited into your account immediately after a successful top up. All Malaysian customers will receive this rebate. If you haven’t been receiving it, kindly call our Customer Service team at 123 for assistance to check on your registered details with us. You may verify the rebate via e-Statement, which can be downloaded from Hotlink RedApp or hotlink.com.my. For example, a customer who tops up RM10, will receive a rebate of RM0.57. An SMS will be sent to inform the customer. The SMS will read : You will receive Special Rebate of RM0.57 for your top up of RM10.00 on 10/03/2016. For balance, dial *100*5# or via the Hotlink RedApp.


  1. When I register for a new line, will I be charged for GST? If yes, how much?
    Any fees for new registration are subjected to GST; therefore 6% GST will be included in the total payable amount.
  2. What are the items that are subjected to GST, and which are those exempted from GST?
    All telecommunication charges are subjected to GST, except for roaming charges which are non-taxable.
  3. How do you charge GST for these products and services?
    GST is charged via normal postpaid billing based on a customer's bill cycle. For device advance payment, GST is charged upon purchase.
  4. Why am I being charged GST for advance payment?
    GST is chargeable upon payment or invoice, whichever is earlier.
  5. How much GST will I need to pay when signing up for a new device contract?
    When you purchase a device, the 6% GST is chargeable for device and device advance payment (if any). In the case where device advance payment is waived, then GST would only apply for the device.
  6. If I return the device and would like to be refunded, how is GST refunded?
    GST should be refunded together with any sum that is supposed to be refunded to you.
  7. How will GST be shown in bills or how is GST calculated if my bill cycle is on 21 March 2015 – 20 April 2015 and GST is effective 1 April 2015?
    We will charge GST for the full bill cycle ending in April 2015. As such, please note that the whole bill dated from 21 March 2015 till 20 April 2015 is subjected to GST.

    However, since GST will only be effective from 1 April 2015, for charges which were not originally subjected to Service Tax, Maxis will give a refund on the GST charged from 21 March 2015 to 31 March 2015 in the next bill cycle.

Integrated / Home Fibre

  1. When I register for the service, will it be subjected to GST and how much will I be charged?
    Any fees for new registration are subjected to GST. The amount you would need to pay would be the fee including the 6% GST on the fee.
  2. If I decide to terminate my contract early and I'm charged a penalty fee, will the penalty be subjected to GST?
    No, the termination charges will not be subjected to GST.


  1. Will customers in designated areas (Langkawi, Labuan and Tioman) be charged GST?
    Customers in designated areas such as Langkawi, Tioman and Labuan will be charged GST when they use telecommunication services. However, purchase of goods such as devices and device accessories in these areas are not subjected to GST.
  2. Now that GST has been implemented, will customers still need to pay the 6% service tax?
    GST will replace the present consumption tax comprising the sales tax and the service tax (SST). Therefore, service tax is no longer applicable from 1 April 2015. Customers will still have to pay any service tax billed prior to 1 April 2015.

Click on the link below for the Consumer Forum of Malaysia's press release: http://cfm.org.my/press-release/20150401/implementation-of-gst-on-goods-services-in-the-telecommunications-sector-pric