What’s the Tax on the Bill? Understanding GST & SST in Malaysia

Ever looked at the receipt and wondered why the total is higher than expected? Maybe it’s that mysterious 6% or 8% tagged on at the end. As a consumer, it’s normal to feel unsure whether you are being taxed correctly, or are businesses charging you more than they should?

With Malaysia’s tax landscape shifting between GST and SST, it’s easy to get confused. This guide breaks down who’s allowed to charge GST or SST, how much is legal, and what to do if you suspect you’re being overcharged. Whether you’re running a business or just shopping at your favourite kopitiam, here’s how to check if that extra tax on your bill is really meant to be there.

What’s the Difference Between GST and SST?

GST: The Old System (2015–2018)
The Goods and Services Tax (GST) was introduced in Malaysia in 2015 and scrapped in 2018. It was a multi-stage tax, meaning businesses charged GST at every step of the supply chain. While this made taxes more transparent, it also added compliance complexity.

SST: The Current System (Post-2018)
Malaysia reverted to SST in 2018. Sales Tax is charged once at import/manufacture (generally 5% or 10% by tariff while on LVG is 10%). Service Tax is charged by registered service providers 8% for most services since 1 Mar 2024, with specific categories at 6% (F&B services, telecommunications, parking, logistics).

Who Can Charge SST in Malaysia?

Not every business is allowed to slap a tax on your bill. Only registered SST businesses can charge Service Tax or Sales Tax and they must clearly show it on your invoice.

Examples of businesses that CAN charge SST:

• Restaurants/cafés earning > RM1.5 million/year (F&B services 6%).
• Hotels/clubs/karaoke/massage & wellness (generally 8% for their services; hotel F&B remains 6%).
• Digital service providers (Netflix, app stores) (8% since 1 Mar 2024).
• Telecommunications companies (6%).

These companies are officially registered with the Royal Malaysian Customs Department (RMCD) and have an SST registration number.

Who CANNOT charge SST?

• Small hawker stalls or kopitiams
• Freelancers or part-time home bakers
• Startups with revenue under RM1.5M that didn’t register voluntarily
• Online shops or Facebook sellers without RMCD registration

If your RM8 kopi beng is suddenly RM8.48 due to “tax”, that’s a red flag unless it’s a cafe in a mall registered for SST.

How to Know If You’re Being Charged Incorrectly

It can be tricky, especially if you don’t have the time to verify every RM0.60 on a bill. Here are practical steps you can take:

1. Look for the SST number on the invoice.

Registered providers must issue invoices with prescribed particulars (incl. name, address, ID number and SST rate/amount shown separately).

2. Use the MySST portal

Go to MySST official website and click on “Registration Status”, search by the company name, SST registration number or business registration number. If it’s not listed, it’s not legally allowed to charge SST.

3. Look for exact % breakdown

SST charges should clearly be labeled “6% SST” or “10% Sales Tax.” Vague terms like “Other charges,” “Processing Fee,” or “Service Fee” without explanation could indicate misuse.

Are You Paying 6% or 10%? Here’s How It Works

Note: Alcoholic beverages are 8%; non-alcoholic ready-to-drink are 6%. If alcohol is bundled in a buffet/banquet meal, 6% applies to the package.

What About GST? Is It Still Charged in 2025?

No. As of 2025, Malaysia does not have GST. Any merchant still charging “GST 6%” is either outdated or intentionally misleading. GST was abolished in 2018 and replaced by SST.

How to Report Unauthorised Tax Charges

If you spot something fishy on your receipt like a “Service Tax 10%” from a roadside stall, or being told “GST still applies”, you have the right to report it.

But which authority do you report to, JKDM (Jabatan Kastam Diraja Malaysia) or KPDN (Kementerian Perdagangan Dalam Negeri)? Here’s the breakdown:

Scenario 1: Business charges SST without being registered

You dine at a café and notice a 6% service tax added to your bill. You check MySST and find out they are not registered for SST.

Report to: JKDM (Customs)
This is a violation of SST law, and JKDM handles enforcement of whether a business is legally registered to collect Service Tax (or Sales Tax).

Prepare:

• Photo or scan of your receipt 
• Name and location of business
• Date and time of transaction
• What was charged (for example, “Service Tax 6%”)
• Screenshot showing they’re not in the MySST system

How to report:

• Online: JKDM Aduan Portal
• Hotline: 1-300-888-500
• Email: ccc@customs.gov.my

Scenario 2: Business uses “GST” label post-2018

A spa issues you a receipt that says “GST 6%” in 2025, but GST has been abolished since Sept 2018.

Report to: KPDN (Ministry of Domestic Trade and Cost of Living)
Even if the tax percentage is “correct,” using “GST” is misleading, especially if they are not registered for SST either.

Prepare:

• Photo of receipt
• Business name, address
• Explanation of confusion or misleading label
• Optional: Screenshot from MySST showing no registration

How to report:

• Online: EzAdu KPDN
• WhatsApp: 019-279 4317
• Call: 1-800-886-800
• Email: e-aduan@kpdn.gov.my

Scenario 3: You’re charged both 6% SST + 10% “Service Charge” and feel unsure

Your bill at a restaurant includes both “Service Charge 10%” AND “Service Tax 6%”, and you feel the total is excessive.

This is common in mid- to high-end restaurants.

As long as:

• The restaurant is registered for SST (check MySST)
• The service charge is properly disclosed (in menu, table signage or prior notice by staff)

Then both charges are legal.

What To Do If Charged Without Disclosure? 

Prepare:

• Photo of receipt
• Check the menu for any mention of service charge, keep photo evidence
• If not stated, and the restaurant refuse to remove it

File a complaint with KPDN as details mentioned in the previous scenario.

Scenario 4: Business adds arbitrary “Tax” without specifying SST or service

Your receipt has a “Tax 8%” line item with no further explanation, and the shop isn’t listed in MySST.

Report to:

• JKDM if you suspect fake SST
• KPDN if it’s more of a misleading term or unexplained surcharge

Prepare:

• Photo of receipt with the suspicious charge
• Name, location of shop
• Screenshots or MySST lookup

Extra tip: It is better to keep the receipt for any future clarification or disputes.

Tools to Check Before You Report

Real Examples: Businesses That Charged Tax Illegally

1. Restaurants charging 6% “GST” after it was abolished

• Case: In 2019, several F&B outlets were fined by the Domestic Trade Ministry (KPDN) for charging “GST” despite it being repealed.
• Penalty: Compound fines up to RM50,000 under the Price Control and Anti-Profiteering Act.
• Lesson: Even if it’s a system error, you are liable.

2. Unregistered cafés charging “SST” to inflate prices

• Case: In 2021, small cafés in urban areas were reported by customers for including “SST” on bills, despite not being SST-registered.
• Action: Reported to KPDN and Customs for enforcement.
• Impact: Tarnished brand trust, potential fines.

3. Online sellers adding GST in Shopee/Lazada listings (post-2018)

• Case: Some sellers continued using “+6% GST” labels in product descriptions.
• Outcome: Shopee and Lazada warned sellers, and Customs monitored platforms.
• Lesson: Charging outdated taxes = illegal and misleading.

Reminder for Businesses

If you’re a business owner:

• You must register for SST if your annual revenue for taxable goods/services exceeds RM500,000.
• You can check your SST registration status via MySST Portal.

Final Advice:

“If the tax isn’t itemised, explained, or backed by a registration ID, you have every right to question it.”

As a consumer, you deserve to know exactly what you’re paying for. Whether it’s SST, GST, or a 10% service charge, no one should slip in extra costs without clarity. Ask questions, check receipts, and don’t hesitate to report suspicious charges.

If you’ve experienced unfair charges and want your story heard, Press – PR Agency Malaysia helps everyday consumers share real issues with the public. From viral media stories to public interest features, our platform is built to give Malaysians a voice.

Disclaimer: This blog is for informational purposes only and does not constitute legal or tax advice. For accurate GST/SST obligations or reporting procedures, please consult the Royal Malaysian Customs Department (JKDM) or the Ministry of Domestic Trade and Cost of Living (KPDN), or speak to a qualified tax professional.