ABM publishes list of bank products, services with GST

PETALING JAYA: The Association of Banks in Malaysia (ABM) has published a list of Goods and Services Tax (GST) treatment by its commercial bank members on over 300 general bank products and services.
ABM said the list was drawn up in consultation with the relevant regulatory authorities and member banks.
The list is available on ABM's website www.abm.org.my with a set of frequently asked questions and answers. However, the list is not exhaustive and merely sets out the GST treatment for the identified types of banking products and services.
ABM advised bank customers to refer to their respective banks for the revised fee payable after the inclusion of GST, where applicable, for each product and service. Its members will also be publishing the detailed price listing at their banking premises or in their respective websites.
"Interest paid by commercial banks to banking customers as a result of deposit taking through various types of accounts (savings, current, fixed deposit or such similar accounts) will not be subject to GST but fees and charges imposed by commercial banks for services enjoyed in relation to these accounts, such as fees and charges for electronic funds transfer, encashment, interbank Automated Teller Machine (ATM) withdrawals (in cases where the ATM is not the ATM of the bank in which the customer's account resides), other ATM fees if any and phone banking, will attract GST," ABM said in the statement.
Interest charged for the provision of loans, advances or credit by a commercial bank to its customers will not be subject to GST but fees or charges imposed in the provision of loans, advances or credit such as, where applicable, documentation fee, loan application fee, redemption statement request fee and/or processing fees will attract GST.
Meanwhile, the transmission of money or remittances will not be subject to GST but the commission levied for the issuance of a cashier's order or a demand draft and tele-transmission charges will attract GST and while the issuance of a cheque by a drawer for payment is not subject to GST, the cheque processing fee will be subject to GST.
Similarly, the cost of the cheque book (excluding stamp duty) and the service fee for encashment of the cheque over the counter will attract GST.
Finance charges in respect of the use of a credit card, debit or charge card are not subject to GST but the annual subscription fee, if any, charged for a credit card will attract GST in place of the RM50 service tax presently payable.
GST is also payable with respect to card fees for debit and charge cards unless such fees are waived.
"Additionally, fees and charges which are imposed to compensate for loss, damages or in cases where the customer fails to meet certain requirements or conditions are not subject to GST. Examples of such charges are late payment charges, replacement fee for lost card/book/PIN, and unauthorised overdraft fees," said ABM.