Goods and Services Tax (GST) is an inclusive value tax imposed on most products and businesses sold for domestic products. GST is paid by customers, but is sent to the government body by the company offering the products and businesses. As a result, the GST provides revenue to the governing body. The first country to implement the GST was France in 1954, and since then around 160 countries have adopted this tax system in one form or another. Examples of countries with GST are Canada, Vietnam, Australia, Singapore, United Kingdom, Monaco, Spain, Italy, Nigeria, Brazil and South Korea. Malaysia implemented GST on 1 April 2015. The Malaysian GST system has two rates GST (6% and 0%) and is zero-rated for exported products, international services, basic food products and many books. The types of goods that are not affected by GST are residential real estate, financial services, childcare and private education services, healthcare services and public transport services. The types of goods affected by GST are cosmetics, skin products, fast food, electronic devices and many more. The difference between the Goods and Services Tax (GST) and the Sales and Services Tax (SST) is that the sales tax is imposed only on a level of production, which is normally at the output level, when the goods are taken out from the factory. Service tax is imposed on certain services offered to the customer. Furthermore, GST is a consumerist tax based on the concept of value addition at every level of the supply chain, from production to consumer. It is imposed on goods and services at every level of production and distribution in the supply chain, including export goods and services. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay In Malaysia there are two laws regulating goods (Sales Tax 1972 in Act 64) and service (Service Tax 1975 in Act 151) separately and both taxes were administered by the Royal Malaysian Customs and Excise (customs). Therefore, sales tax and service tax will be charged to the customer who consumes taxable goods and services. Sales tax is charged to the customer who consumes taxable goods and then collected by the company and responsible for customs. Another service tax is charged from the customer who consumes taxable services like in hotels and restaurants. In addition to the growing budget deficit, the Malaysian government is implementing the GST to improve revenue collection. In reality the general functioning of the GST will only be taxed on the value of each stage. Therefore, the person is registered under the GST necessary to charge for goods and services from customers. The person can claim a credit on any GST incurred on purchases and if the person's customer is taxing goods and services they can also allow you to claim a credit, a way to prevent double taxation from occurring. But the GST rate is still not a concern as the government has asked to consider some factors such as the current threshold of sales tax and service tax, number of businesses in Malaysia, exemption and zero rate , social and economic considerations. On environmental GST, the tax will be imposed in two situations: input tax and output tax. Input tax is the tax generated in the process of purchasing goods and services by the person. Another output tax refers to the consumption tax changed to the customer at the time of sale. Furthermore, the taxable person will divide the rate supplies separately into three GST rate categories.