Small Businesses are Forced to Exercise GST to Avoid Losses

PANDAN, 20 Dec: Small-scale traders have to register as businesses charging the goods and services tax (GST) to the Customs Department to enable them to claim the goods credit from distributors and large manufacturers.

The Member of Parliament for Pandan, Rafizi Ramli, said that the GST will only be refunded to the trader on items termed ‘GST credit’.

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“This allows traders to receive the ‘GST credit’ from the Customs Department.

“If the dealer does not claim the GST credit, they will suffer losses. Companies of businesses that sell goods or services exceeding RM500,000 per annum must register to charge the GST,” he said, quoted from Keadilan Daily.

Rafizi, who is also the Director of Strategy for Parti Keadilan Rakyat (PKR) said this at the ‘Understand GST, Reject GST’ briefing which was held at the Ampang Jaya Municipal Council (MPAJ) auditorium yesterday.

He said that companies where their sales were less than RM500,000 would also impose the GST because the government collects the GST from distributors and traders.

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