GST

GST

As you all already know, GST will be implemented this coming Wednesday, 1^st April aka April Fool’s Day. GST which is also known as VAT or the value added tax in many countries is a multi-stage consumption tax on goods and services. GST is levied on the supply of goods and services at each stage of the supply chain from the supplier up to the retail stage of the distribution. Even though GST is imposed at each level of the supply chain, the tax element does not become part of the cost of the product because GST paid on the business inputs is claimable. Hence, it does not matter how many stages where a particular good and service goes through the supply chain because the input tax incurred at the previous stage is always deducted by the businesses at the next step in the supply chain. The price for clothing, foods and beverages, cars, and many more will increase by 6% due to GST. When there’s a tax, businessman will not absorb the cost, instead will pass it down to the consumers. So you can’t blame the consumers to worry so much about GST. If you want to go for shopping or any necessities, you better buy all of it now before 1^st April. Are you ready for GST? As much as you want to say yes, but I know most of you are not.