Registered retailers who derive cost savings from the Goods and Services Tax (GST) should pass them on to consumers or else it is going to be an unreasonable profit, says Royal Malaysian Customs Department Assistant Director from the GST Division, Annie Thomas.
"Since the registered retailer is entitled to claim the input tax, GST is not a cost to the registered retailer and therefore, the cost of goods or services before charging GST should not include the GST incurred on the input.
"Mark up for the price at the point of sales should be done on actual cost, not on consideration price to the supplier, which is an incorrect method," she said at the National GST Conference 2014 here today.
The portion of GST incurred claimed as input tax has to be deducted from the price of the goods supplied to the registered retailer before the registered retailer marks up (value add) to the cost of sale.
This is important because the registered retailer has claimed the amount of GST on acquisition of the goods and that the GST on input is not a cost to him.
Annie added that a non-registered retailer will face difficulties to compete with those registered retailers as their costs are much higher.
"A non-registered retailer would not be able to claim input tax, so their costs are going to be higher compared to registered retailers.
"Their profits will also going to be less compared to those registered because they cannot claim input tax," she said.
Registered retailers should talk to their suppliers and customers on the cost savings, said Annie, adding that they should ask suppliers to be registered if they reach the threshold revenue because it mandatory for them to be registered.
Any retailer who makes taxable supplies (i.e. standard and zero rated supplies) where the sales turnover in a year has exceeded RM500,000 is liable to be registered as a registered person, explained Annie.
However, any retailer whose sales turnover does not reach the threshold of RM500,000 can choose to be registered voluntarily, she added.
Annie was one of the speakers for a session entitled, "Impact of GST on retailing", at the conference organised by the Malaysian National News Agency (Bernama) and Tax Advisory & Management Services Sdn Bhd.
The session was moderated by Bernama Acting Deputy Editor-in-Chief Mikhail Raj Abdullah.
Bernama
Fri Jul 11 2014
...
MITRA sudah belanja RM40 juta daripada peruntukan RM100 juta tahun ini
Sebanyak RM40 juta daripada peruntukan RM100 juta yang disalurkan kerajaan tahun ini kepada MITRA telah dimanfaatkan untuk pelbagai program.
Laporan Pasaran Labuan IBFC 2023 tunjukkan pemulihan kukuh, pertumbuhan luar biasa
Laporan Labuan IBFC 2023 mendedahkan pertumbuhan luar biasa wilayah itu yang menyumbang RM1.2 bilion kepada hasil fiskal Malaysia dan melepasi paras RM1 bilion buat pertama kalinya.
Freedom Flotilla to Gaza: Guinea-Bissau akur kepada Israel, tidak beri kebenaran guna bendera bagi misi pelayaran
Kerajaan Republik Guinea-Bissau dilaporkan tunduk dan akur kepada gesaan Israel untuk tidak membenarkan misi pelayaran Break The Siege: Freedom Flotilla to Gaza menggunakan bendera mereka.
Penyakit berkaitan haba dikhuatiri meningkat di Gaza
Penularan penyakit berkaitan haba panas menjadi kebimbangan terbaharu di Gaza selepas suhu luar jangka melampau melanda wilayah itu setiap hari. Ia sudah semestinya diburukkan lagi dengan kekurangan air bersih dan ketiadaan sistem pembuangan sisa pepejal yang sepatutnya wujud di sesebuah kawasan didiami manusia.
Ilhan Omar melawat peserta tunjuk perasaan
Wakil Dewan Perwakilan Amerika Syarikat (AS) Ilhan Omar mengadakan lawatan di kampus penyokong Pro Palestin di Universiti Columbia New York pada Khamis.
Dua lelaki didakwa jadi 'tali barut' kepada China
Dua lelaki yang mana salah seorangnya pernah bertugas di Parlimen United Kingdom (UK) enjalani proses perbicaraan di mahkamah London pada Jumaat selepas didakwa menjadi tali barut menyalurkan maklumat sulit kerajaan kepada negara tembok besar itu.
Polis serbu pejabat 'Save the Children' di Guatemala
Polis Guatemala melakukan serbuan mengejut ke atas pejabat-pejabat Pertubuhan Save the Children di pelbagai lokasi di negara itu. Ia bagi mencari bukti dakwaan pertubuhan yang memperjuangkan kebajikan kanak-kanak itu, terlibat dalam jenayah penderaan terhadap golongan itu.
LIMA '25 dianjurkan pada 20-24 Mei tahun depan
Pameran Maritim dan Aeroangkasa Antarabangsa Langkawi 2025 (LlMA ‘25) akan dianjurkan pada 20 hingga 24 Mei tahun depan bertemakan Innovate Today, Thrive Tomorrow.
Malaysia komited tingkat hubungan dua hala bersama Libya
Malaysia terus komited mempertingkatkan hubungan dua hala yang berterusan bersama Libya demi manfaat bersama dalam pelbagai sektor.
Demi rakyat, Zahid-Muhyiddin henti saman fitnah
Presiden Umno, Datuk Seri Ahmad Zahid Hamidi dan Presiden Bersatu, Tan Sri Muhyiddin Yassin bersepakat untuk menamatkan pertikaian peribadi antara mereka.