GST shall be levied and charged on the taxable supply of goods and services made in the course
or furtherance of business in Malaysia by a taxable person. GST is also charged on the importation
of goods and services.
A taxable supply is a supply which is standard rated or zero rated. Exempt and out of scope supplies are not taxable supplies. GST is to be levied and charged on the value of the supply.
GST can only be levied and charged if the business is registered under GST. A business is
not liable to be registered if its annual turnover of taxable supplies does not reach the
prescribed threshold. Therefore, such businesses cannot charge and collect GST on the supply of
goods and services made to their customers. Nevertheless, businesses can apply to be registered
voluntarily.
Almost all countries collect income tax, which is a percentage of what you earn
as an individual. Another way the government gets revenue is by collecting tax
from business operations, like sales tax and duties on items that are bought or
sold.
We need to pay tax so that the government can operate. GST is one method of
collecting taxes which works better than others.