GST - 5W1H

WHAT IS GST?

GST is a consumption tax levied on goods and services at all levels of business. The consumer is taxed only when they spend. GST will replace the Sales and Service Tax (SST). It is aimed to streamline the country’s tax system to be more effective, efficient, transparent and business friendly.

GST was first implemented in France as early as 1950s. Today, more than 160 countries have implemented GST. Malaysia, Myanmar & Brunei are the only remaining countries in the ASEAN region which have not implemented GST.

WHY IS GST BEING INTRODUCED?

It is better and fairer tax system compared to SST. The following are some of the benefits of GST:

·         Reduced business costs
Under SST, the merchant is not able to claim the input tax fully. Nevertheless, with GST, the merchant will enjoy the benefit as they will be able to claim back the input tax over raw materials/goods and services paid at every level of the business. As a result, the operating costs can be reduced.

·         Improved compliance
SST involves a complicated tax administration system whilst GST has a ready mechanism which is self-policing, thus improving compliance.

·         Reduces bureaucracy
The process is easier now with GST since the application for approval of exemption on raw materials is no longer required.

·         Provides fairness
The same GST rate applies for all businesses involved, be they manufacturing, wholesaling, retailing or services.

·         Makes products & services more affordable to consumers
GST eliminates the cascading effect of tax under SST. As a result, consumers get to enjoy more affordable prices for most of the goods and services obtained compared to the SST.

·         Ensures transparency
GST is more transparent compared to SST because consumers will be fully aware if goods purchased or services obtained are subjected to tax and the exact amount of tax payable.

GST RATE AND THRESHOLD

·         GST rate : 6 %
·        GST threshold : RM500,000 (Business that do not reach an annual turnover of taxable supplies amounting to RM500,000 are not required to register under GST. However, voluntary registration is encourage).

GOODS AND SERVICES NOT SUBJECTED TO GST

For socio-economic benefits, certain goods and services are not subjected to tax such as:

*        Basic groceries such as rice, flour, sugar and cooking oil
*        Purchase and rental of residential building
*        Sale and purchase of agricultural land
*        Education
*        Public Transport
*        Healthcare services

For enquiries, please contact: 1300-888-500 / 03-8882 2111
www.gst.customs.gov.my

Source : Ministry of Finance's (MOF) pamplet on GST




Comments

  1. zasma yasmin dawoodDecember 31, 2020 at 3:14 PM

    This comment has been removed by the author.

    ReplyDelete
  2. zasma yasmin dawoodDecember 31, 2020 at 3:17 PM

    Thanks for sharing this post. To know more about gst rate finder please click here : gst rate finder

    ReplyDelete

Post a Comment

Popular posts from this blog

Tunku Abdul Rahman speech at the 1st Muslim Summit 1969

Image
MUSLIM  SUMMIT AT RABAT Below is the speech text by the First Prime Minister of Malaysia, Tunku Abdul Rahman Putra Al-Haj at the First Muslim Summit at Rabat, Maghribi (Morocco) from September 22-24, 1969. Through this summit, the 25 Islamic country leaders that attended the summit voluntarily agreed  to establish Organizations of the Islamic Conference (OIC) on 25 September 1969. Your Majesties, Your Excellencies: I must begin by expressing first of all my profound gratitude to His Majesty King Hassan II for the invitation he has so graciously extended to hold this Muslim Summit Conference here in his lovely Capital City of Rabat.  The warmth of the reception we have received and the arrangements made for our comfort have been so well arranged. Tunku and King Hassan 11, Rabat 25 Sept. 1969 (Foto: Arkib Negara) I am grateful to Almighty God from the bottom of my heart that it has been possible for us to meet together.  This unique gathering of ...
Read more

RUKUN NEGARA (ENGLISH)

Image
Rukun Negara or the Pillars of the Country was declared on August 31, 1970 in conjunction with the 13 th Independence Day celebration. It was introduced following the May 13, 1969 incident that weakened the unity among the races in Malaysia. The purpose behind the formulation of the Rukun Negara was to shape strong and lasting unity between the different races in Malaysia. The principles found in it are clearly the key ingredient for national and racial harmony and unity hence ensuring success and stability for the country. Say your Rukun Negara in English. OUR NATION MALAYSIA  is dedicated to: ·        Achieving a greater unity for her people; ·        Maintaining a democratic way of life; ·        Creating a just society in which the wealth of the nation shall be equitably distributed; ·        Ensuring a liberal approach to her rich and div...
Read more

Bersedia untuk gempa bumi

Gempa bumi adalah salah satu daripada fenomena alam yang paling menggerunkan dan mengakibatkan kemusnahan. Ini adalah kerana kejadiannya tanpa amaran, menakutkan ramai penduduk dan menjadikan mereka kurang bijak serta berkelakuan yang boleh memudaratkan. Memandangkan pengetahuan dan persediaan merupakan kunci kepada keselamatan semasa dan selepas sebarang bencana, anda harus mengambil langkah-langkah perlu supaya sentiasa bermaklumat. Adalah penting bahawa penduduk yang tinggal di kawasan-kawasan mudah dilanda gempa bumi mengambil beberapa langkah berwaspada dan tahu apa yang perlu dilakukan apabila berlaku gempa bumi susulan. Adalah tidak pasti bahawa dengan adanya persediaan dan mengetahui apa yang perlu dilakukan boleh menyelamatkan nyawa, mengurangkan kecederaan dan meminimumkan kerosakan harta-benda. Tambahan lagi penduduk yang tahu apa yang perlu dilakukan semasa gempa bumi akan lebih bersikap tenang dan pengetahuan tersebut bermanfaat baginya. Kesedaran adalah langkah perta...
Read more