Iskandarliving Forums • <!-- IF S_IN_MCP -->Moderator Control Panel • <!-- ELSEIF S_IN_UCP -->{ UCP } • <!-- ENDIF -->View topic - GST illustration

GST illustration

Credit Card; Deposits for Subsale; Drafting a Will; Insurance; Loans; Opening of Bank Account; Procedure for Buying from Subsale; Procedure for buying from Developer; Remittances; Taxes;

GST illustration

Postby avelc » Tue Oct 29, 2013 7:56 pm

Illustration that shows GST will increase property prices (from another forum).

Question: Does anyone knows if GST only applies to end consumers? or the entire supply chain?
eg: manufacturer gst 6% -> distributor 6% -> wholeseller -> retailer 6% -> end user.

entire chain.

each entity (gst registered) in the chain - pays net gst
i.e. each of these entity pays gst when buying and also collects gst when selling. so net goes to lhdn
e.g. purchase value $100, gst $6. sell value $200, gst $12. net gst to lhdn is $6. -> next entity in the chain until it reaches consumer.

importer. prod $100. pays $6 gst. sells at $200 to wholesaler. importer collects $12 gst from wholesaler. net gst is $6. wholesaler sells to retailer at $300, collects $18 gst from retailer, so wholesaler net gst is $6. retailer sells to consumer at $400, collects gst at $24, and claims back $18, so retailer pays net gst at $6. consumer pays $24 gst but can't claim back from lhdn.

with the exception of consumer (or end user in your example) who pays full 6% gst but can't claim back gst from lhdn.
Asst Administrator
Posts: 317
Joined: Thu Dec 22, 2011 12:08 pm

Re: GST illustration

Postby FHBH » Tue Oct 29, 2013 10:14 pm

That is y property price n other things will be more costly. I reckon at least 10% more expensive in 2015 compare to now. Property probably can go up by 15% just on this GST alone, not even talking abt other factors like slowing supply by developers. Locals got distracted by government's property measure to "punish" foreigners. Wait till they digest e news n get panicky by end of e year. Everyone will chiong for property, especially whatever terrace below $750k RM.
Asst Administrator
Posts: 2663
Joined: Sat Jun 16, 2012 9:11 pm

Return to Financial Matters

Who is online

Users browsing this forum: No registered users and 1 guest