It is no secret that the Goods & Services Tax (GST) will be soon implemented on 1 April
2015, and the GST rate has been fixed at 6% while the current Sales Tax and Services
Tax will be abolished. The question is, are you ready?
As a general rule of thumb, GST is a consumption tax based on the
value-added concept, such tax levied and charged on the taxable supply of goods
and services by a taxable company and individual. Further, GST is also imposable
on the importation of goods and services.
No doubt, GST can only be levied if the business is registered under
GST. In other words, a business is not eligible to be registered if its annual
turnover of taxable supplies does not reach a prescribed business turnover.
Therefore, such businesses are not liable to charge and collect GST on the
supply of goods and services made to their customers.
We need to pay tax so that our Government can operate efficiently. Besides,
GST is proven better tax format as it works effective, efficient and
transparent, further spur economic growth as well as increase our country’s competitiveness
in the global arena.
GST is not new concept, in actual fact, the idea of GST was actually devised by a French tax
official during the 1950s. GST is also known as VAT (Value-Added Tax) in other
countries. There are more than 160 countries nowadays including the European
Union and Asian countries such as China, Singapore and Sri Lanka practice such
form of taxation.
Here are some of the tax rates of countries around the world who have
implemented GST or VAT.
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About GE Consult
Founded
since 2003, GE Consult has helped numerous local SMEs/SMIs in
developing their company profiles, business plans, business proposals
etc. assisted clients in securing business deals and contracts. If you
are looking for a winning company profile or any professional services,
please do not hesitate to contact us at (+6017) 330 8077 and/or email
rachel@geconsult.org for further service explanation.
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