GST Diary for layman - A2. What is GST to consumer

Not to be surprise, I would generally say that, everyone who living in Malaysia will start to do some contribution to our nation economy development through paying GST. Yes, everyone including your pet, when you buy pet food from a taxable person (pet shop).

To be more simple, all the stuff that you could not find their name in either GST Exempt List or Zero Rated List, you may need to pay an additional 6% GST on top of the price that you paying now if you are buying from a registered person (expected nearly >90% of business ). 

Kindly be noted that, there are some differences between GST vs Sales & Services tax. Other than the items to be included, the seller involved in GST is also many more timesssss than the Sales and Services tax. 

E.g. Take account that a common restaurant takes space of 24 x 75 sq. with 60 seats could serve for 480 heads count a day, total 14,400 heads a month or 172,800 heads a year, each customer averagely RM15 per visit, the annual turnover of the restaurant is about RM2,592,000, which is not even up to the service tax threshold of RM3,000,000 for restaurant operate outside hotel. Further, count on how many restaurants be fully engaged all the time from open to closed? We would say that’s nearly impossible unless the restaurant is a retailer chain of business or has branches to contribution and get to meet the threshold. However, GST reduce such threshold from RM3,000,000 to RM500,000, which is a restaurant with same physical set up, charge not more than RM10 per visit, only the lunch & dinner time is fully engaged, yearly turnover could be easily more than RM864,000 (RM10 x 60 x 4 x 30 x 12). 

So, please do not be surprise that the Indian Mamak store in next door is collecting GST from you, do not surprise that even a small convenient stall with only half shop lot book store operate below the low cost flat is also collecting GST from you when you getting a magazine there.

Note: Thanks for your time spending with me to read on my thought, for continue reading; please refer to my topic E0. End topic: Actions you need to prepare for GST implementation