Malaysia GST Calculation

Selling price

  1. = model cost × markup %
  2. = mp%

i.e.

$1 + 20% = $1.2 First markup 20%
$1.20 + 30% = $1.56 Second middleman markup 30%

After implemented GST 6%.

$1 + 6% = $1.06 No GST upon raw product
$1.06 + 20% + 6% = $1.332 First markup
$1.332 + 30% + 6% = $1.84 Second markup

Let assume all markups, p are equal. So after GST selling price total times of middleman transferred.

  1. 1.062(1+p) m
  2. 1.063(1+p)2 m
  3. 1.06n+1(1+p)n m

Finally come out.

  1. Selling price after GST 6% = 1.06n+1pn m


where

  1. n = total time of middleman transferred
  2. p = after markup %
  3. m = model cost


Increment or Inflation

  1. = 1.06n+1pn m/ pn m
  2. = 1.06n+1

Assumption

Now we can calculate how many times the product get transfer to end of consumer by assuming all markups are same.