The Royal Malaysian Customs Department (RMCD) is still responsible for processing the claim for Goods and Service Tax (GST) refund by virtue of GST (Repeal) Act 2018. Nevertheless, the claim for refund of GST is subject to verification process.
As a measure to expedite the process for the claim of GST refund especially during and after the Movement Control Order (MCO) period, several approaches (as below) will be implemented by way of “refund first and audit later for selected companies”:
|1||GST refund of less than RM100,000
|The claim is subject to verification and need to pass through the verification process (desk review). However, the Company or Claimant will still be subject to audit at anytime within 6 years from 1 September 2018.|
|2||GST refund of RM100,000 and above
|The claim is subject to risk rating process (Penarafan risiko). Once the claim has passed the risk rating and verification process (desk review), the GST will be fully refunded. However, the Company or claimant will still be subject to audit at anytime within 6 years.
If the claim does not pass through the risk rating process, GST will not be refunded until the full audit (field audit) is conducted. However, as a measure to ease the Company’s cash flow and to ensure the importance of the revenue of the nation is secured, the GST will be fully refunded if the Company is able to fulfil the following requirements:
i. Pass the screening process through verification (desk review); and
ii. A declaration from the director of the company that the information provided in the claim is true and correct and agree to pay back any under payment of taxes and penalties; and
iii. Place a bank guarantee (BG) of a value equivalent to 10% of the total amount of GST refundable as at 1 January 2019.
Full audit (field audits) will then be carried out on the company and the BG will be returned once it is confirmed that there is no under payment of taxes and penalties.
For Companies which have NOT received the claim for the GST refund, please check the status via Taxpayer Access Point (TAP) system or visit the nearest customs office to find out any further information that is required by the RMCD.