CCEN 2402, ENTREPRENEUR 2 (NICHE AREA)
SEM 2, 2014/2015

TITLE: HOW GST WILL IMPACT LOCAL ENTREPRENEUR

PREPARED FOR : SIR MOHAMMAD ZULFALIHIN BIN ROSLI
PREPARED BY : NAME | MATRIC NO | ‘AFAF ZULFA BT AHMAD ZAKI | 1326420 |

HOW GST WILL EFFECT LOCAL ENTREPRENEUR

The Government of Malaysia already decided that on 1 April 2015, Malaysia will start imposing new tax system that is known as GST(Goods&Services Tax) to replace the current Sales Tax. One of the major different between GST and Sales Tax is in GST,all items and services from all chain levels are subjected to GST (minus some essential items) thus GST generally has a far wider coverage compared to existing tax system. Therefore,in GST the final tax burden will ultimately will be borne by consumer. Any type of businesses ranging from sole proprietary, company, unions, club, partnership, individuals with more than RM 500,000 taxable sales are required to register for GST. It would be optional for those below RM 500,000 to register voluntarily.The GST will have a great impact on local entrepreneur or business owner. For companies, the immediate challenge would be the integration of GST into their operations. Companies must now assess the impact of GST on their operations and pricing strategies. Although the mechanics of GST are relatively straightforward (that is output tax less than input tax), the challenge is in the details as companies must also consider the capability of their IT systems to cope with the demands of GST, the need to educate employees and customers as well as the impact on employee benefits. The Board of Directors must also be extra careful to ensure that pricing strategies are accurately modeled as a wrong decision could impact the company's performance.
Business will receive a GST identification number upon registrations. Companies will have to issue Tax invoices displaying the