A short sharing slide about GST vs SST

1. GST VS Sales and Service Tax (SST)
The Malaysian government had implemented GST by
April 2015 and like it or not, individuals or business
corporates have to get ready. However there are
some differences between this 2 taxes.
The Differences
GST VS SST
1. SST is a single stage tax (one-way) while GST is a
multistage tax which based on consumption.

2. 2. Total payable taxes from consumer to
government:SST: Manufacturer of XYX can drink pays
10% sales tax to government and when the
product reach to fine dining, the restaurant
will need to collect 6% service tax on
behalf government and ended up the end
consumer will need to pay a total of 16%
tax to the government.

3. GST: The good news is the consumer
might be paying LESS!
How it goes?:As the GST rate is standard of 6% where
the manufacturer pays 6% and fine dining
restaurant pays as well 6%, as a result the
end consumer pays up a total of 12% of
GST tax.


4. The input tax credit of GST
SST: Under the SST system, the business
are able to recover on tax paid and
usually it is calculated as cost of business.
In short, as pricing mark up, so as the SST
where there is a possibility of consumer
pay more SST.
 GST: GST is not included in the pricing
mark-up and consumer only pays GST of
each value added process at a flat rate of
6%


5. The Big Question!
However, price of goods will be higher if
trader never take into account of input
tax credit. Price of goods will be lower if
trader willing to take into account of
input tax credit. Will they?
 For example, will manufacturer lower
down the pricing of a XYZ soda drink
since they only pay 6% instead of 10%
sales tax..


6. End of Presentation

The slide is for info sharing purpose and it
is a intellectual property of:
CW Management and Consultancy Services
www.cwca.com.my
The writer can be contacted through:
ckchong@cwca.com.my