Info Centre - Credit Cards
Credit Cards Info Centre

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FAQ for GST
Personal Financial Services (PFS)

(A) General Enquiries

1.What is GST?

GST or Goods and Services Tax, which is also known as value added tax or VAT in many countries, is a multi-stage consumption tax on goods and services.

GST is a multi-stage tax on domestic consumption. GST is charged on all taxable supplies of goods and services in Malaysia except those specifically exempted. GST is also charged on importation of goods and services into Malaysia.

GST shall replace the current consumption tax i.e. the sales tax and service tax (SST)

2.When will GST be implemented?GST will be implemented effective from 1st April 2015.
3.What is the GST rate?Effective 1st April 20125, 6% of GST rate shall be levied and charged on standard-rated supplies.
4.Will GST be charged on all banking transactions?

No. GST will only be charged on applicable fees and charges.

Please refer to www.hlb.com.my for list of fees and charges that will be charged with GST.

5.Can you provide me HLBB’s GST registration number and registration date?

HLBB’s GST registration : 000459079680

HLBB’s GST registration date : 20th August 2014

(B) Credit Cards

  1. What are the credit card Fees & Charges that are subject to GST?
    You may refer to our website for the listing of credit card related Fees & Charges that are subjected to the GST.
  2. Is GST going to replace Credit Card Service Tax of RM50 (principal) or RM25 (supplementary)?
    Yes, once GST is enforced on 1 April 2015, Credit Card Service Tax shall be ceased
  3. Can the GST be waived?
    No, as this tax is payable to Kastams on taxable supplies of goods and services.
  4. How is this GST going to be imposed on the taxable Credit Card transactions?
    The GST imposed on the taxable supply shall be posted into the Credit Card account and reflected in the Credit Card statement as a separate transaction but tied back to the original taxable transaction.
  5. Will there be a reversal of the GST transaction if the original taxable transaction was reversed out subsequently?
    Yes, the 6% GST would be reversed out accordingly and such reversal will also be reflected in the Credit Card Statement.
  6. Will there be a Tax Invoice generated by HLB on the GST imposed on the taxable supply?
    Yes, the Tax Invoice is retrievable from the following channels:
    - Sign on to Hong Leong Connect to retrieve the Tax Invoice
    - Request hardcopy from Branch
    - Call HLCC and request a copy to be sent via eMail or Fax
  7. Will there be a Credit Note generated by HLB on the GST transaction which was subsequently reversed out in accordance to the reversal of the original taxable supply?
    Yes, the Credit Note is retrievable from the following channels:
    - Sign on to Hong Leong Connect to retrieve the Credit Note
    - Request hardcopy from Branch
    - Call HLCC and request a copy to be sent via eMail or Fax
  8. Is Late Payment Charges and Finance Charges (Retail & Cash Interest) subject to GST?
    No, they are not subjected to GST.
  9. Is Card Replacement Fee subject to GST?
    No, it is not subjected to GST.
  10. Is Early Settlement Fee for Balance Transfer (BT) subject to GST?
    No, it is not subjected to GST.
  11. My credit card’s anniversary month falls in March (before GST implementation). Do I have to pay for GST imposed on the taxable supply - Annual Fee?
    No, GST will not be imposed on Annual Fee charged on March 2015 instead the existing Credit Card Service Tax of RM50 (principal) or RM25 (supplementary) shall be imposed.
  12. f I have paid the annual fee and card service tax on 15 March 2015 (before 1 April 2015), will the GST still be imposed after 1 April 2015?
    No, the GST will only be charged on 15 March 2016.
  13. I am having a credit card free annual fee for life with no spending condition. Do I have to pay for the GST under annual fee?
    No, as the annual fee is not billed, hence no GST imposed.
  14. Do I have to pay GST for the cash rebates I am earning every month on my card (example Wise card/ Fortune Card/ Essential card cash rebates)?
    No, rebates you earned are not subjected to GST
  15. Do I have to pay GST on free gifts received from the Bank’s initiated marketing campaigns or promotions?
    No.
  16. If I redeem a voucher from your rewards program, example RM100 AEON voucher for my purchase at AEON shopping complex- do I have to pay additional GST?
    Redemption of a cash voucher is not subjected to GST.
  17. For rewards redemption, would the 6% GST be imposed on the item redeemed?
    No.
  18. For rewards redemption via fast track (partial points and partial charged), would the 6% GST be imposed on the RM amount?
    No.
  19. If I take up BT/ BT+/ CFC/ CFC+ with your bank, do I have to pay for GST?
     BTBT+CFCCFC+
    Amount1
    Interest1N/A
    Handling fee2N/AN/AN/A
    One-time interest2N/AN/AN/A
    RM2 IBG fee3N/A
    1 Not subject to 6% GST
    2 Subject to 6% GST
    3 Should you require for the funds to be disbursed via IBG, the 6% GST is chargable on the RM2 IBG fee
  20. I used my card in overseas and I understand there is an administrative fee imposed by Card Scheme and the bank. Is the administrative fee subjected to GST?
    Yes, the administrative fee imposed by Card Scheme and the Bank is subjected to GST.