It depended on SPA, even if the SPA is silence on GST, one still needs to look at the other clauses stated in the SPA regarding the amendment, or any other provision etc.

GST is known to be implemented long ago in one day, lawyer who draft the SPA should know how to insert clause to deal with the potential GST issue.

This post has been edited by cherroy: Jul 6 2015, 08:49 AM

GST cannot be waived one and cannot be zero rated simply by anyone.

You cannot have a S&P to counter act the GST ruling. (like as mentioned above zero rated the GST because of contract with no opportunity to review)

Somebody must pay the GST if the GST ruling said, any progressive payment on non-GST exempted property (commercial/industrial) after 1/4/2015 is subjected to GST.

No one can overule the GST ruling.

So GST is a must, aka you cannot overule the law/existing GST ruling.

While a contract is silence on GST, it doesn't mean buyer is not subjected to GST.
Just like teacher ask the student, anyone finish their homework, the whole class silent, it doesn't mean the student finish or not finish their homework.

But on the term "no opportunity to review", then it is between purchaser and vendor already, which is another issue.
Until there is a verdict on similar case, or any specific directive or ruling from Custom department to deal with the case mentioned, we cannot assure the solution should be.

This post has been edited by cherroy: Jul 8 2015, 08:33 AM

Yes, then we proceed the right path, instead of saying "zero rated on the commercial properties" which is not right to start with.

Silence of GST in the clause, doesn't mean developer cannot charge GST on the purchase price.

If there is clause (normally got as far as I encountered, which is quite standard) stated S&P must/will follow what the law stated or imposed or any other regulation incurred, then the developer is just obeying what rules imposed by gov by charging the GST on purchaser.

By right, in GST, it is always the buyer pay the GST, (even for the so called "absorbed GST" goods, seller just lower the price to counteract the GST effect, GST still being imposed paid by buyer).

But with the "no opportunity to review" clause, we cannot assure how the situation should be pan out.

As developer can argue they do not review the property purchase price, still selling the same price, but GST is imposed by Custom, not developer. So they do not breach the contract as they are still selling the same price.
While purchaser can argue that they pay extra more due to GST, which is not the same as stated in the contract.

So, we cannot assure the answer until there is a verdict on this issue.

This post has been edited by cherroy: Jul 8 2015, 09:39 AM

I don't know what you disagree about.

Also, I think little people could understand what you are trying to say with the above statement, care to elaborate more?

Whether the S&P price is inclusive or exclusive, (no opportunity to review issue) it doesn't differ that GST must incur or must be paid after 1/4/2015.

If the price is RM100k,
either developer charge 100K + 6% = Rm106K, or RM94340 + 6% = Rm100K. (if based on no opportunity to review clause)

How can purchaser request developer to issue a tax invoice with zero rated, (RM100K + 0%), when they actually deliver a standard rated item?