GST

Introduction of GST
GST is a short for Goods and Services Tax. GST is a tax that will replace Sales Tax
(SST) (10%) and Service Tax (6%) in Malaysia. It is one of the measures taken by the
government to improve the country's financial system as well as finding new sources of
revenue by improving the efficiency of tax collection. GST is a classification of indirect taxes
such as excise duty, countervailing duty and service tax, and revenues from levies such as
value added tax, entry tax and luxury tax. Only the final consumer who would bear the GST
charged by the dealer last in the supply chain, with the benefit of a deduction in the previous
stage.
Beside that, GST is a tax that is rated. Tax payments are made at every level by an
intermediary in the process of production and distribution processes. The tax itself is not a
cost to the intermediaries as they can claim back the GST incurred on their business inputs.
GST is imposed on goods and services at each stage of production and distribution in the
supply chain, including the importation of goods and services.

TYPE OF GST
GST is divided into three standard rated, zero-rated and exempt. GST standard rate is
6% on the final price of an item. Among the products involved in the standard rate of GST is
home goods, clothing and accessories. All goods and services under the GST rate is subject to
standard tax of 6% on every stage of the purchase and the parties unless the end user can
recover the credits they have paid for the GST and it is also known as input tax.
The second type GST tax is zero-rated GST. It is GST0% on the final price. Among
the products involved in this type GST is basic foodstuffs, unprocessed foodstuffs and
ingredients that involves education. It means GST zero-rated GST will not be charged to end
users but businesses can claim back input tax credit on the subject.
Next, is the GST neutrality . This means that no tax is imposed on users. The products
involved is an abode with health care. Categories of goods and services is not taxed and it's
also not subject to GST. The last user is not entitled to claim back input tax credit if they are
incurred by any party.
EFFECT OF GST TO PROPERTY INDUSTRY
GST will not affect the property prices directly. But the uncertainty it causes will
cause buyers to hold back purchases. besides, they can afford to wait may delay a decision to
purchase as they will wait until there is a clearer picture of the impact of GST on the wider
economy as well as on the property market.
GST implementation has resulted in a surplus in the property market trait in the
housing industry malaysia. eg surplus that has built condominium .This will cause
berlakuanya situation to wait and see before and after the GST and the conditions that apply
to loans become more stringent by the financial institution.

The next effect is also reduced business costs after replacing the GST sales and
services tax (SST) as the restaurant no longer have to pay sales tax on the purchase of tables,
chairs and other facilities made lain.Dengan implementation of the GST, the dealers can offer
prices cheaper than the money saved from the payment of taxes, "