Specialised Tax

ROSHINI A/P POOBALAN

233678

GROUP F

ASSIGNMENT 1- GST

DUE DATE: 14 SEP 2016 BEFORE 12.30PM

1. Explain the difference between zero rated supplies and exempt supplies for Goods and Services Tax (GST).

Zero-rated supplies include basic essential goods such as rice, fresh fish, meat, chicken, cooking oil and fresh vegetables, water for domestic use, the first 300kWh of electricity for domestic use and exports of goods. These are taxable supplies that are subject to a zero rate. Businesses are eligible to claim input tax credit in acquiring these supplies, and charge GST at zero rate to the consumer.

While, An exempt supply is not a taxable supply. It is a business transaction on which GST is not chargeable at either standard or zero-rated. Businesses are not eligible to claim input tax credit in acquiring these supplies, and cannot charge output tax to the consumer.

1. A manufacturer produced a pair of shoes and sold it to a wholesaler for RM150. The wholesaler sold the shoes to a retailer at the price of RM180. Later, the retailer sold the shoes to consumer at RM220.

REQUIRED:

Based on the scenario above, compute the GST payable to the government and input tax claimable for every stage of the supply chain.

1. Shukor is the sole proprietor of Leisure Electronics, which trades in electronic goods. Leisure Electronics is registered for GST. Leisure Electronics recorded the following sales for February 2016: