GST Requirements, Penalties

         Registration on GST

All businesses will fall within the scope of GST unless they are specifically defined as zero-rated, exempt or out-of-scope. The prescribed threshold is RM500,000 of annual turnover. For those that fall below this prescribed threshold, it will be voluntary registration, whereas those that exceed this amount, it is a mandatory registration.

 GST Filing

The document that is used to submit the GST Returns is called Form 3. (“GST-03”).

As for the frequency, it depends on the annual turnover of the company. For annual turnover below RM5 million, the frequency of filing is quarterly. Those companies that are achieving annual turnover above RM5 million, the filing frequency will be increased to monthly.

Deadline for filing of the GST Returns and payment of GST is the last day of the month following the taxable period. Example, if the taxable period is January to March, then the deadline for filing and GST payment shall be 30 April.

Keeping of Records

All GST registered businesses are required to keep their records for 7 years. The required documents are (non-exhaustive):-

1.         Documents showing goods and services supplied or received;

2.         Importation documents

3.         Exportation documents

4.         Contracts and quotations, showing the GST liabilities

 Penalties – Late Registration

·          Fine up to RM20,000 effective 1.1.2015 for those liable to register under Subsection 184(2) GST Act 2014. Subsection 21(6) GST Act 2014.


Penalties – Incorrect Return

·          Fine not exceeding RM50,000 or imprisonment not exceeding 3 years or BOTH; and

·          Penalty equal to the GST undercharged

 Penalties – General Offence

·          Fine not exceeding RM30,000 or imprisonment not exceeding 2 years or BOTH.

 Penalties – Late Payment of GST

·          5% if within 30 days;

·          Additional 5% after 30 days but not exceeding 60 days;

·          Additional 3% for every subsequent 30 days or part thereof;

·          AND subject to a maximum tax of 25% of the late payment penalty (for 181 days or more).


 Update on 8 December 2014

 CNPS Advisory PLT (LLP002391-LGN)

Tel: 013 - 3141 593 / 016 -2409 294  Fax: 03-6207 1598