The Goods and Services Tax (GST) is a value-inclusive tax imposed on most products and businesses sold for domestic goods. GST is paid by customers, but it is sent to the governing body by the companies offering the products and businesses. As a result, GST brings revenue to the governing body. The first country to implement GST was France in 1954, and since then, around 160 countries have adopted this tax system in one form or another. Examples of countries applying GST are Canada, Vietnam, Australia, Singapore, United Kingdom, Monaco, Spain, Italy, Nigeria, Brazil and South Korea. Malaysia implemented GST on April 1, 2015. The Malaysian GST system has two GST rates (6% and 0%) and allows zero rate on exported products, international services, basic food items and many books. The types of goods that are not affected by GST are residential goods, financial services, childcare and private education services, health services and public transport services. The types of products affected by GST are cosmetics, skin products, fast food, electronic devices and many more. The difference between Goods and Services Tax (GST) and Sales and Services Tax (SST) is that Sales Tax is only imposed on one level of production, which is normally produced at the production level, when the goods leave the factory. Service tax is imposed on certain services when they are offered to the customer. Additionally, GST is a tax on consumerism based on the concept of value addition at each level of the supply chain, from production to the consumer. It is imposed on goods and services at all levels of production and distribution in the supply chain, including export goods and services. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayIn Malaysia, two laws separately govern goods (Sales Tax 1972 in Act 64) and services (tax on Services of 1975 in Act 151) and both. taxes were handled by the Royal Malaysian Customs and Excise (Customs). Thus, sales tax and service tax will be charged to the customer who consumes taxable goods and services. Sales tax is charged to the customer who consumes taxable products and then collected by the business and customs official. Another service tax is charged to the customer who consumes taxable services such as hotels and restaurants. Along with a growing budget deficit, the Malaysian government is content to implement GST to improve revenue collection. In reality, the general operation of GST will only be imposed for the value of each stage. Thus, the person is registered for the GST required to charge customers for goods and services. The person can claim a credit for any GST incurred on purchases and if their customer taxes the goods and services, they can also claim a credit, a way of avoiding double taxation. But the GST rate was still not a concern as the government required to consider a few factors such as the current sales tax and service tax threshold, number of businesses in Malaysia, exemption and the zero rate, as well as social and economic considerations. environment, the tax will be imposed in two situations which are the input tax and the output tax. Input tax is the tax generated during the process by.