There are many negative consequences to the businesses from the
implementation of GST which shown in previous articles and examples.
The businesses bear financial cost and non-financial costs the caused
by the GST where the financial cost is referring to the system
upgrading for the implementation of GST. In theory, the businesses
would not hurt by the GST due to the claim basis and they can
transfer the extra costs to the end users, but is that true? Let's
see some example on the effects to the businesses as the result of
GST. The most obvious outcome is extra cost incur by the businesses
which is non claimable before the implementation of GST.
All the businesses which are fulfilling the requirement of GST are
mandatory to register with the respective department and mandatory to
change the required system in order to upgrade their existing system.
The businesses have to pay these extra costs before the
implementation of GST which is non claimable, the amount spent
between RM10,000-RM20,000 with RM1000 of allowance from the
government. Besides, the large businesses that are involving of
various departments and business segments have to pay extra costs
with the aim of training their staffs to learn and to enhance the
knowledge on the implementation of GST system. The businesses have to
pay extra cost which include the cost of upgrading the required
system, training costs and consultation fee on the implementation of
GST. All these cost incur by the businesses before the implementation
of GST and these costs are non claimable.
After all, is that only negative consequences from the
implementation of GST to the businesses??? It might looks bad from
the system changes which incur extra costs to the businesses,
however, the operations of the businesses can be improved with the
upgraded system. In the long run, the upgraded system will result in
favourable outcome to the society and
beneficial to the businesses where the transparency
of the transactions improved with the new system implemented and the
businesses are able to keep track their record and maintain proper
information much more easier which increase the global
competitiveness in the long run.
