I still don't know why GST is good for me. Other than adding on the cost of the purchase, what good does it give me? Btw, GST is enforced by Ministry of Domestic Trade, Cooperatives and consumerism.
I attended a seminar on GST conducted by a tax agent recently. As I am doing some trading business, I am made to be aware of the additional working capital to run my business. Apart from that, it is very important to keep track of the GST incurred in buying from suppliers and selling to customers. Otherwise, penalty, penalty, penalty!
Since my business incurs credit terms, my customers can sometimes pay me after 3 months or 4 months. For business sales volume of less than RM5 mil, I have to submit the GST (6%) of the sales amount in 3 months. That means to say that I have to come out with working capital to cover the GST even if customers do not pay me. The penalty of late submission is cumulative.
The zero rated supplies are live cattle, sheep, goats, ducts, fish, etc, eggs, potatoes, carrots and other vegetable, rice, wheat, flour, palm oil, etc, goods supplied to Langkawi, Labuan & Tioman, supply of treated water and 200 units of electricity for a month, education and childcare services, and exports are also zero rated.
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