What is GST Transitional Rules on Trade?
GST liability - If such supplies are made before 1 April 2015 and ends on or after 1 April 2015 (spanning 1 April 2015) where the invoice is issued or payment is received before 1 April 2015, the consideration for the proportion of supplies made on or after 1 April 2015 are liable for GST.
GST payable on transition transactions will be calculated on pro-rated basis and is only applicable to the upfront commission paid for Bank Guarantee/Bank Guarantee-i (BG/BG-i), Standby LC/Standby LC-i (SBLC/SBLC-i), Import LC/Import LC-i, and LC Usance Bill (LC/LC-i).
Illustration of GST Payable on Pro-rated basis:
Example 1: BG/BG-i upfront commission RM1,200 paid on 2 January 2015 for tenure ending 31 December 2015.
Pro-rated (1 April 2015 - 31 December 2015) : RM905.79 (RM1,200 * 274 / 363)
GST Payable : RM54.35 (RM905.79 * 6%)
Changes on Trade Finance Application Forms
All trade application forms have been incorporated with GST clauses. AmBank Transaction Banking reserves the right to collect from you should there be any GST applicable for the fees and charges set out in the application forms effective 1 April 2015.