Internet of Things (IoT) for GST Malaysia

Is prescribed device part of Internet of Things (IoT) Master Plan? Is prescrived device involving communication between geographically distributed wireless devices through a centrally managed software platform? Let see Internet of Things (IoT) impact on GST Malaysia.

The concept of Internet of Things (IoT) as per figure below consists of three layers:-

  1. Sensor Layer
  2. Connectivity Layer
  3. Application Layer
Internet of Things for GST Malaysia
Prescribed Device was stated in Section 34A and Section 34B in GST Act 2014 and passed in Finance Bill 2016. The main purpose of the Prescribed Device is to collect and gather information of Prescribed Person.
In order for Prescribed Device to work with Internet of Things (IoT), this physical device will act as the sensor between machines. It can use to connect to Point of Sales and Cash Register. The device shall collect the data and capture the event in case of interruption.
Once the data captured in the device, the SIM card inside the device shall combine any transmission protocol such as mobile network to send the data to the server.
A software application in the server shall analyze, report and act upon the data analytics generated by the application. Authorities need to monitor the potential trend and pattern of the data analytics.
Further information about Prescribed Device shall be available in the near future.