A Case Study On Texchem Food SDN BHD’S Readiness For GST Implementation
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Date
2014-05
Authors
Abdullah, Affendi
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
With the announcement of Goods and Service Tax (GST) implemented by our government during the Budget 2014 on 25th October 2013, the current consumption tax systems of Sales Tax and Service Tax (SST) will be officially replaced with effect from 01st April 2015. The announcement has since triggered various reactions and perceptions from every level of the society, including manufacturers, accountants, logisticians, retailers, financial institutions, housing developers, general public, etc. that the price of a wider range of products and services will soon be impacted and increase inevitably. Texchem Food Sdn. Bhd. (TFSB), a subsidiary under the Texchem Group of Companies, is also not exempted from facing the potential impacts of the new tax reform to its profitability and sustainability. Before the researchers were able to come out with our findings and recommendations to TFSB on their readiness for GST regime, an aggressive initiative has been taken by our team members in studying and understanding the scope, requirements and legislations pertaining to the GST implementation. By doing so, the researchers have applied the research methodologies of ‘Questionnaire’, ‘Fishbone Diagram’ and ‘Symptoms versus Problems (SVP)’ analyses as recommended by our project advisor, e.g. Tuan Haji Noor Nasir Kader Ali. The tools were used to identify and investigate the key problems that may potentially impact the sustainability of TFSB, for instance cash flow, human error in report preparation and its profitability upon GST implementation. In order to provide an easier understanding to the readers, all our research, including the recommended solutions are explained and simplified into the model of ‘House of
Pillars’. Meanwhile, it can also be used by TFSB as their business strategy and further research in the future.
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Keywords
Texchem food sdn bhd’s readiness , for gst implementation