Challenge 1 - GST Registration
The Government's biggest challenge is to get businesses to register under the GST system. GST registration opened in June 1, 2014.
As at middle of September 2014, only 40,000 of the expected 300,000 businesses have registered. Slightly more than 13% have registered. What about the rest of the businesses who are expected to be government tax collectors? .
The deadline for GST registration is Dec 31, 2014, a mere 3 months away. And 87% of businesses have not registered.
The question we should ask is "why is there a slow take up rate for GST registration"
Could it be:
1. they do not know what is GST
2. they do not know they are required to register
3. they do not know how and where to register
I deal in accounting software. So far, I have managed to get only about 25% of my customer base to upgrade their accounting software to the GST version. Out of that number, only 10% have registered for GST, and have gotten our help to redeem the eVoucher of Rm1000.00 to subsidise the purchase of the GST accounting software.
So my database reflects the government statistics. I do have a long way to get the rest of the customers to register for GST, and to claim their share of the GST subsidy.
Challenge 2 - GST awareness
The bigger challenge for the Government is to promote better understanding of exactly what the GST is about. People want to know the effect of GST for consumers and for businesses
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