April will come sooner and many consumer worried about Goods and Service Tax (GST). One of common question is about GST on ATM.
I’ve got the question about how GST on ATM. Some of them said that the 6% is based on our withdrawals which means a lot for us.
This is wrong misconception as the Finance Ministry has reiterated that GST only applies to the RM1 MEPS fee. This means, the RM1.00 fee will increase to RM1.06.
Other’s banking service will affect on GST is the money transfer. It means the commission a bank levies for its service in issuing either a cashier’s order and demand draft will be increased by 6% not the amount being transferred.
For telegraphic transfers, there is a commission charged by the bank and it also has 6% charge.
For moneychanging transaction, it is not including the GST but if there’s a service fee, than the 6% will be included.
Loan also has the various fee subject to GST but not the actual loan amount. It also including the cheques and credit card which is from the service fee amount only.
This means the annual subscription fee for credit or debit cards are subjected to GST, but interest isn’t.
For more information, refer gst.customs.gov.my.
// Eventhough, the GST is based on transaction and not amount, it still costly. It means we need to increase 0.06 when using MEPS or avoid using it. It is not good for consumer and also industry especially for technology that using MEPS for their transaction.