What I know about the proposed Malaysia GST:-

1). It is proposed that the GST is being taxed at 4%. The mentioned 7% was said by a minister that was not backed by any sources.

2). According to the proposed GST, they are 3 catergories of GST.
a). Standard supply--> It apply to almost all stuffs except for those under exempt and Zero-rated supply. For Standard Supply, the end user/consumers bear the GST.
b). Zero-rated supply --> It apply to daily necessity foodstuff. The term zero-rated means, no GST on input and output, so theoritically, the price of these items should not be inflated by GST (but in practice, the price still increase due to GST...)
c). Exempt supply--> Housing. GST on input but not output. It means that the developers need to absorb the GST and cannot pass to the buyers.

3) Exempt supply for housing
The proposed GST states that the developers need to absorb GST. In practice the developers just add the cost of GST and pass it to the buyers (which is not allowed to do so). But how to govern/prove these? Which developers are so clumsy to bear the GST cost?

Hope these can clarify some issues.

This post has been edited by Denis: May 20 2013, 04:04 PM

At the moment, the proposed GST has presented to the parliament for the 1st reading. 2nd reading and 3rd reading yet to be done. If GST is gonna to replace Sales and Service Tax (SST), then it needs 2/3 majority of the YB to pass through as it involves changes of indirect tax collection system (if I m not mistaken).

After the 13th election, opposition managed to get over 1/3 of the parliament seats and they are opposing GST.
This mean that GST may not be implemented in the forseeable future , imho.

Read carefully, I said over 1/3 is held by opposition. That mean BN is holding less than 2/3.
Get it?

This post has been edited by Denis: May 21 2013, 02:01 PM

That is too bad.
Anyway, thanks for clarification.

Bros, you have a very good knowledge on GST.
Sadly acknowledged that the world isn't fair.
GST is a classic example that the rich will become richer whereas the poor will become poorer.
I mean rich are those who have very high income and they are mostly enterpreneurs.

BTW,personally feel that it can't eliminate smuggling activities (which some people alleged that GST can eliminate smuggling activities).
e.g. Smuggling liquors.

The liquors don't pay input tax as the liquors aren't declared in the custom.
Then the non-taxed liquors are sold to the consumers. The smugglers won't issue any invoices for these liquors and the consumers normally won't request for these invoices (since they know these are illegal liquors or they are also the end users). In this way, the custom just simply can't trace these GST from these smuggling liquors.

Appreciate if you can comment any loopholes for the above transactions on smuggling activities.

This post has been edited by Denis: May 23 2013, 08:59 AM

Dude, totally different issues.