GST: RM100 compound daily if firms not registered

KOTA KINABALU - A daily compound of RM100 will be imposed on companies which failed to register for the Goods and Services Tax (GST) beginning Jan 1.

State Customs Department Director Datuk Dr Janathan Kandok on Friday said this applies to all business companies that had sales turnover of RM500,000 or more and are subject to mandatory registration of the GST but failed to do so after Dec. 31,2014.

"We can also issue a compound fine of up to RM15,000 on those who fail to register," he said, adding that business owners who failed to register their companies could be charged under Section 96 of the GST Act 2014, which carries a fine of up to RM30,000 or a period of up to two years jail or both.

"Ample time has been given to them to register for GST and I again remind companies subject to mandatory registration of GST to do so as soon as possible," he said.

He said business companies with less than RM500,000 in annual sales turnover could voluntarily register their companies.

On another note, he said as of Dec 31 last year, the State Customs Department has registered a total of 16,395 companies. "The target Key Performance Index (KPI) for GST registration was initially set at 5,000 companies but later increased to 12,000.

"Thus, it means that we have exceeded the KPI target by 137 per cent," he told a media conference held at the Wisma Kastam here, Friday.

On that note, he said from Jan 2, the department will focus on post verification on the registration of GST.

"We will conduct several series of hand holdings to guide companies registered with GST on how to use My-GST system. The GST tax of six per cent will be enforced starting April 1 this year to replace the Sales and Services Tax.

DE