Customs dept to take action on qualified online traders who failed to register for GST

PETALING JAYA: The customs department will clamp down next month on online traders who failed to register for the Goods and Services Tax (GST) despite having an annual turnover exceeding the GST threshold.
Customs department deputy director-general Datuk Subromaniam Tholasy said the department has formed a special task force to track down online traders whose annual sales volume has exceeded RM500,000 but have yet to register for GST, Sin Chew Daily reported today.
He said the task force will check on not only companies registered with the Companies Commission of Malaysia (SSM) but also individuals, especially those who use the social media to do business, who are also required to register for GST should their sales exceeded RM500,000 a year.
"As long as you are a local online trader or your company is set up in Malaysia, and your annual sales turnover exceeds RM500,000, you must register for GST," he said.
Subromaniam told the daily that in an audit carried out by his department in January, it was found that some online traders had been evading taxes.
"We cannot disclose how much GST has been recovered (from these errant traders). Some of them will be charged in court."
He pointed out that those who are liable for GST registration but failed to do so will be charged under section 41 of the Goods and Services Act 2014 and can be fined up to RM30,000 or jailed up to three years or both if convicted.
Disclosing that a few hundred online traders have already registered for GST, Subromaniam said his department is monitoring some 30,000 others to make sure they register for GST if they are liable to do so.
Meanwhile, Subromaniam confirmed to Nanyang Siang Pau that the customs department is going to waive penalties on those who evaded Sales and Services Tax (SST) or still have SST arrears if they own up and settle the amount in full before the year is out.
SST was replaced with GST on April 1 last year.
He said the department will make an announcement regarding the matter soon.