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Amendments to Director General (“DG”)'s Decisions - Issuance of Tax Invoice, Debit Note and Credit Note on/ after 1 September 2018

In line with the repeal of the GST Act 2014, the Royal Malaysian Customs Department (“Customs”) previously issued a DG’s Decision on 7 September 2018 to reiterate that GST registered businesses are not allowed to issue any tax invoice on/ after 1 September 2018.  It follows that GST debit note or credit note shall not be issued, effective 1 September 2018.  However, GST must be accounted for in the final GST Return (due by 29 December 2018) for any taxable supply made before 1 September 2018, including retention sum for work done before 1 September 2018. 

On 21 December 2018, an Amended DG’s Decision has been issued in which tax invoice, credit note and debit note for GST purposes may be issued on/ after 1 September 2018 for any taxable supply made before 1 September 2018.  However, these GST documents issued after 29 December 2018 will be subject to Customs’ audit. 

The Amended DG’s Decision also allows businesses to apply for extension of time to account for GST or claim input tax after the due date for the submission of the final GST Return (i.e. 29 December 2018), subject to reasonable grounds on a case by case basis e.g. where the retention sum relates to a defect liability period beyond 29 December 2018.  However, there are no further details on how and when the application should be submitted as well as whether any penalty will apply if the approval is not granted.

Please click on the above header link for a copy of the DG’s Decisions and Amendments at the SST official portal. 

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