steadyaku47

Saturday, 14 March 2015

GST

Goods and services tax (GST)

GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
Generally, businesses and other organisations registered for GST will:
  • include GST in the price of sales to their customers
  • claim credits for the GST included in the price of their business purchases.
So, while GST is paid at each step in the supply chain, businesses do not actually bear the economic cost of the tax. The cost of GST is borne by the final consumer, who can't claim GST credits.




steadyaku47 comment: The above is what GST means in Australia. Read the last line of the above carefully again :  

The cost of GST is borne by the consumer. 

Repeat not by the business but by the consumer.

The business collects the GST on behalf of the Government from the consumer by including the GST in the price of sales to their customers.

So where does the "extra" GST payment comes from? It comes form the pockets of you and me! So how not to pay more for the items you are now buying? Must pay more lah because before there was no GST to pay, now got GST! So no need for any long winded explanation lah.... go figure this out yourself.

Now whether the government can collect the GST from the business that is collecting the GST for the government is another things to consider. In Malaysia (as we all know) possession is 90% ownership ma! So how?