What is GST? Definition of Goods & Services Tax
GST is a consumption tax charged on a wide range of domestic & international products, goods and services. It’s a broad-based tax imposed on every level of a product, from raw materials all the way to finished goods. It affects all layers of business and consumers – And whether you realize it or not, you’re being taxed for almost every thing.
Goods & Services Tax (GST)
Malaysia’s budget 2010 reports that the Goods and Services Tax (GST) is currently at the final stage of completing the study on the implementation, where analysts are measuring the social impact of its presence in Malaysia.
The Malaysian government said that it could be possible for them to implement this in the near future. Looking at Malaysia in a broader scale, GST will not only affect big businesses, but small and medium enterprises (SME) as well. Although there were nimbles of past information saying that a food outlet can only charge GST if it’s annual turnover is above RM3 million (3,000,000 Ringgit Malaysia), the GST compliance requirements and thresholds has not been officially announced.
If we were to take into account GST’s implementation into goods and services, we have to assume that will happen to all stages of the supply chain – Which means from the purchase of raw materials or start-up goods all the way to end-user (consumer ready) products available for sale. Ultimately in a product, GST charged to every level are passed on to the next person and ultimately, the consumer.