LAST_UPDATESun, 27 May 2018 11am

Bill Payment & Online Banking Fees To Be Charged GST

PETALING JAYA - When the Goods and Services Tax (GST) comes into effect this April 1, Malaysians will also be charged for MEPS, online banking, and over-the-counter transactions.

GST will be payable in respect of the basic charge or fixed fee in connection with commercial banking products and services, said the Association of Banks Malaysia (ABM) executive director Chua Mei Lin.

The banks will collect the tax on behalf of the Royal Malaysian Customs. However, interest or spreads charged by commercial banks will not be subjected to GST.

Chua also added that GST will be applicable to service fees imposed on online interbank Giro fund transfers and some over-the-counter transactions – including bill payments at Pos Malaysia counters.

“ABM member banks will publish their list of fees and charges and GST details, including whether GST is payable or not for those charges,” Chua said.

“If there is a bank charge or fee, then GST will be imposed on those charges. The six per cent GST charge will not be for the transaction amount but for the bank charges,” Customs director-general Datuk Seri Khazali Ahmad explained.

Pos Malaysia also confirmed this, saying that GST is not the bill amount but only the service fee.

“For example, if the bill is RM100 and the service fee is RM1, the customer has to pay RM101.06 after GST,” they said.

“Hence, the billing agencies will also absorb the GST payment and the customer need not pay anything beyond the bill amount,” they added.


- mD