Gst: Government Service Tax
I. INTRODUCTION
It is generally perceived that the introduction of the Goods and Services Tax (GST) can facilitate a significant improvement in the overall tax administration and enable revenue authorities to introduce modern procedures based on voluntary compliance. GST is a consumption tax charged on a wide range of domestic & international products, goods and services. GST covers all types of goods & services sold to Malaysian & non-Malaysian residents also known as consumers except for common commodities such as rice, flour & sugar. It is a broad-based tax imposed on every level of a product, from raw materials all the way to finished goods. Goods and services tax (GST) is one type of indirect taxes. GST is also known as value added tax (VAT) (Abood Mohammad Salmeen Alebel, n.d). On the other hand, indirect tax is a tax that can make people difficult such as export duties, import duties, excise duties, sales tax, service tax and others. (Juliana A. Kadir, Mustafa Idris, Zulkifli Mohamed, n.d). Although GST and VAT have different names, they represent the same system where the cost of tax is actually borne by the end user. It affects all layers of business and consumers and whether consumer realizes it or not, you’re being taxed for almost everything. It is a tax based on consumption.
GST had been introduce to Malaysia on January 2007. Thailand and Indonesia are among the country whom introduce GST to Asia. Since GST is new to Malaysians, many have questions about its operating mechanism, for example how it applies to each level of the goods in a supply chain and eventually how it affects the end consumer. Business owners would be more interested to find out how it affects the production costs and its impact in running the businesses. In the technical sense, GST is divided into input tax and to understand the GST operating mechanism we can see this analogy. A cotton planter sells cotton to cloth manufacturer at RM100 and collects 4% GST
It is generally perceived that the introduction of the Goods and Services Tax (GST) can facilitate a significant improvement in the overall tax administration and enable revenue authorities to introduce modern procedures based on voluntary compliance. GST is a consumption tax charged on a wide range of domestic & international products, goods and services. GST covers all types of goods & services sold to Malaysian & non-Malaysian residents also known as consumers except for common commodities such as rice, flour & sugar. It is a broad-based tax imposed on every level of a product, from raw materials all the way to finished goods. Goods and services tax (GST) is one type of indirect taxes. GST is also known as value added tax (VAT) (Abood Mohammad Salmeen Alebel, n.d). On the other hand, indirect tax is a tax that can make people difficult such as export duties, import duties, excise duties, sales tax, service tax and others. (Juliana A. Kadir, Mustafa Idris, Zulkifli Mohamed, n.d). Although GST and VAT have different names, they represent the same system where the cost of tax is actually borne by the end user. It affects all layers of business and consumers and whether consumer realizes it or not, you’re being taxed for almost everything. It is a tax based on consumption.
GST had been introduce to Malaysia on January 2007. Thailand and Indonesia are among the country whom introduce GST to Asia. Since GST is new to Malaysians, many have questions about its operating mechanism, for example how it applies to each level of the goods in a supply chain and eventually how it affects the end consumer. Business owners would be more interested to find out how it affects the production costs and its impact in running the businesses. In the technical sense, GST is divided into input tax and to understand the GST operating mechanism we can see this analogy. A cotton planter sells cotton to cloth manufacturer at RM100 and collects 4% GST
References: 1. Abood. M.S .Alebel (n.d). Goods and service tax, problems and effects of implementation,1, 55-64. Retrieved January 3, 2011 from http://cob.uum.edu.my/journals/images/EBulletin/paper_7_goods_and_services_tax% 5B1%5D.pdf 2 5. What is GST?(2010). Retrieved January 16, 2011 from http://www.jagam.org.my/09_tayori/2010/04-Apr/tayori-apr-2010.pdf APPENDIX