GST - FOR THE BETTER OR WORSE?
For better or for worst ? If GST 2.0 is finally reintroduced in Malaysia.
So many IF in the above . Let’s assume it is coming back.
I believe there will be some in our communities who will be welcoming this return –
- Most businesses and enterprises in Malaysia who have been making successful claims on input tax credit for their purchases that they have incurred for their business operation. Since GST ( at whatever rate ) which they are charging will be a cost to the final consumer in the previous GST regime, they may like GST to return provided the refund for the zero rated suppliers can be speedier than the past refunds and so are the excess GST overpayment in the returns.
- A minority few like the previous exempt suppliers may not welcome this tax as the GST input is a cost to them and they cannot offset this with GST output as their supply is an exempt supply.
The businesses reservation may be on the prices of their goods and services and the deemed excessive profits that they must refrain from making under the previous Price control Anti profiteering Act. The formula used to monitor the excessive profit is very complicated and cannot be understood by many businessmen and expert as well. This part of price monitoring was not well managed in the previous regime. We may need to rethink about this mechanism to control prices and perhaps let the market to decide what is the best price. In any case this is perhaps the most confusing part of the GST regime.