Who is online?
In total there is 1 user online :: 0 Registered, 0 Hidden and 1 Guest :: 1 Bot


[ View the whole list ]

Most users ever online was 25 on Thu Mar 12, 2015 5:00 pm
Latest topics
» This forum no longer accept new postings
Fri Jul 03, 2015 9:34 am by joseph

» Industrial Diesel
Fri Jul 03, 2015 9:11 am by joseph

» ICT industry
Fri Jul 03, 2015 9:10 am by joseph

» Input Tax (Passenger Car for business purpose)
Mon Jun 29, 2015 5:25 pm by joseph

» Conditions to Claim Input Tax
Mon Jun 29, 2015 3:12 pm by joseph

» Additional industry code
Sun Jun 28, 2015 5:53 pm by joseph

» Sales Commisions
Fri Jun 26, 2015 7:44 pm by Poon1

» Advance payment for services not rendered yet
Thu Jun 25, 2015 4:13 pm by joseph

» Turnover Below RM500,000 subequent to GST registration
Wed Jun 24, 2015 6:16 pm by joseph

» Consigment Sales
Wed Jun 24, 2015 6:00 pm by joseph

» GST Accounting Entries
Tue Jun 23, 2015 10:21 pm by joseph

» Advance payment received from Customer
Tue Jun 23, 2015 5:45 pm by joseph

We have 351 registered users
The newest registered user is emtng

Our users have posted a total of 570 messages in 139 subjects

Display results as :

Rechercher Advanced Search

Which is more beneficial to consumers? Zero rated or exempt supplies?

Go down

Which is more beneficial to consumers? Zero rated or exempt supplies?

Post by Admin on Sat Sep 27, 2014 9:39 pm

From the customer's point of view, zero rated and exempt supply seem to be the same but are they?

Supplier of zero rated supplies charged GST at 0% but can claim all input tax. Customer who buys zero rated supplies do not pay any GST. In this instance, effectively the GST cost is borne by the government.

Suppliers of exempt supplies do not charge consumers GST and at the same time cannot claim any input GST. In this case suppliers have bear the cost of GST. When this happens, the cost of the exempt suppliers will increase with the implementation of GST and hence their profit will decrease. A normal business enterprise that strives to maintain and increase profit will most likely transfer the increase in cost to consumers in the form of price increase.

The government recognize that exempt and zero rated goods and services are essential to the public and tries to ease the burden of the public by making it zero rated and exempt. However, in making a supply exempt, the government tries to transfer the cost of GST to the suppliers. Whether the suppliers absorbs the GST and not transfer the price to consumer is left to be seen but the prediction does not look optimistic.


Posts : 47
Join date : 2014-07-30


Back to top Go down

Back to top

- Similar topics

Permissions in this forum:
You cannot reply to topics in this forum