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GST Updates

The Royal Malaysian Customs Department (RMCD) has released an updated GST guideline pertaining the issuance of tax invoice, debit note, credit note and retention payment after 1 September 2018. This newly updated guideline shall prevail over the latest tax alert in April 2019: Updates on GST and Sales Tax Exemption.

The major changes in the updated guideline are briefly highlighted as follows:

Tax invoice

  • Previously, a tax invoice is not allowed to be issued after 1 September 2018. The new guideline provides that any registered person who makes taxable supply of goods or services before 1 September 2018 may issue either tax invoice or invoice after 1 September 2018 and account for tax in the final return
  • A registered person who is the recipient of a tax invoice is eligible to claim the input tax credit in his final return on or before 29 December 2018. Such claim is deemed the final claim for all input tax and any input tax credit is not claimable after 29 December 2018.

Retention payment

  • As provided in the previous guideline, a registered person is not required to account for output tax on any invoice issued for retention sum or any retention payment received, whichever is earlier, on or after 1 September 2018, relating to work done before 1 September 2018. If he has issued a tax invoice or received retention payment on or after 1 September 2018 and he has declared and paid the tax in the final return, he may issue a credit note to his client and amend his final return.
  • A recipient of a credit note relating to retention sum shall adjust his final return. He may apply for remission via GST TAP should there be any imposition of late payment penalty.

Please contact your respective Grant Thornton indirect tax adviser should you require further guidance.