GST in Malaysia Essay

In Malayan Tax System. Royal Custom & A ; Excise Department is responsible for all policies related of Goods and Services Tax ( GST ) . Presently. the rate of GST can be category to 3 rates which are standard rate. zero rate and exempt supplies. ( Gst. imposts. gov. my. 2014 ) GST can merely be charged on the concern was registered under the Malayan Goods and Services Act 2014. The enrollment freedom is given if the business’s one-year turnover of nonexempt provider is below than the GST enrollment threshold. Therefore. such concerns can non bear down GST on their merchandises or services from their clients. ( Gst. imposts. gov. my. 2014 ) The GST enrollment is available from 1st June 2014 for any concerns which have reach the GST enrollment threshold of more than RM500. 000 are required to register under with Royal Malaysian Customs Department for the Goods and Services Tax ( GST ) before 31st December 2014.

However. the concern with one-year turnover below RM500. 000 may use for the GST voluntary enrollment that is because enrollment GST is voluntary. ( HengAnn. 2014 ) There are no any excess fees charged for GST enrollment processing. Goods and Services Tax ( GST ) and Value-Added Tax ( VAT ) are a type of ingestion revenue enhancement had been invented in 1950’s. Both of GST and VAT are based on value added construct and it is a multi-stage revenue enhancement. so GST or VAT will bear down at each phase of supplies concatenation.

Presently. there are 160 states had implemented GST or VAT and from this statistic has shown that GST and VAT are an effectual and just revenue enhancement system. Harmonizing to the information shows based on the part. 160 states had implemented GST or VAT are as the undermentioned states: 7 states in ASEAN. 19 states in Asia. 53 states in Europe. 7 states in Oceania. 44 states in Africa. 11 states in South America and 19 states in Caribbean. Central and North America.

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On 7th April 2014. the Goods and Services Tax was passed in Dewan Rakyat Malaysia with 119 ballots for and 81 ballots against. Start from 1st April 2015. GST will effectual at a standard revenue enhancement rate of 6 % . The propose of execution GST will replace the current ingestion revenue enhancements which are Government Gross saless Tax ( 10 % ) and Services Tax ( 6 % ) .