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Goods and Services Tax ("GST") Adjustments Post 1 September 2018

The Royal Malaysian Customs Department has recently uploaded two Guides on GST adjustments and declarations, following the repeal of the GST Act 2014 on 1 September 2018.  Please click on the above header link for a copy of the GST Guides at MySST website.

Set out below are some of the notable points, based on the Guides dated 19 April 2019:-

  1. Tax Invoice

Any GST registered person who makes a taxable supply of goods or services before 1 September 2018 is not allowed to issue a tax (GST) invoice on/ after 1 September 2018.  However, he shall account for the output tax accordingly in the final GST Return (“GST-03”), by 29 December 2018.

Any GST due and payable that is yet to be accounted for in the final GST-03 shall be accounted for and paid by amending the final GST-03. 

  1. GST Debit Note (DN) and Credit Note (CN)

GST DN and CN can be issued by any GST registered person where there is a change in consideration for a taxable supply made before 1 September 2018.  The corresponding adjustments to output tax and input tax shall be made as follows:-

DN or CN Issued/ Received

GST Adjustments

During 1 Sept 2018 to 29 Dec 2018

In the final GST-03, by 29 December 2018

After 29 Dec 2018

By amending the final GST-03 in the month in which the DN or CN is issued/ received, by the last day of that month

The above adjustments are allowed subject to the following conditions:-

  • The DN or CN is issued in accordance with Regulation 25 of the GST Regulations 2014;
  • The DN or CN issued must be valid and agreed by both parties and accepted by the recipient;
  • The adjustment to the principal amount and GST amount must be recorded in the relevant account by the issuer and the recipient;
  • All records related to the DN or CN adjustment need to be kept for 7 years.
  1. Retention Payment

A GST registered person is not required to account for GST on any invoice issued pertaining to a retention payment or retention payment received, whichever is the earlier, on or after 1 September 2018 which relates to work done before 1 September 2018.

  1. Input Tax Claim

Any input tax claim supported by a valid tax invoice issued before 1 September 2018 must be made in the final GST-03 by 29 December 2018.

  1. Bad Debt Relief

After 29 December 2018, any GST registered person who is entitled to a bad debt relief is allowed to make a claim by amending his final GST-03, subject to meeting conditions.

Other than issuing reminder letters and legal notices of demand, the debt must be written off in the account to be considered as “sufficient efforts” in making a claim for bad debt relief.

GST on any subsequent recovery of bad debt, after 29 December 2018, shall be accounted for by amending the final GST-03.

  1. Reversal of Input Tax Claim (“6 month Rule”)

Any GST registered person who is required to make reversal of input tax claim, after 29 December 2018, as a result of failure to pay his supplier within 6 months from the date of the acquisition must do so by amending the final GST-03.

Subsequently, if he makes payment of the outstanding amount due to his supplier, input tax can be claimed by amending the final GST-03. 

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Contact KPMG

For more information on our core service offerings, please contact:

Petaling Jaya Office

Tai Lai Kok
Executive Director –
Head of Tax and Head of Corporate Tax
+ 603 7721 7020

Long Yen Ping
Executive Director –
Head of Global Mobility Services
+ 603 7721 7018

Bob Kee
Executive Director –
Head of Transfer Pricing
+ 603 7721 7029

Ng Sue Lynn
Executive Director –
Head of Indirect Tax
+ 603 7721 7271

Soh Lian Seng
Executive Director –
Head of Tax Risk Management
+ 603 7721 7019

Nicholas Crist
Executive Director –
Corporate Tax
+ 603 7721 7022

Dato’ Leanne Koh
Executive Director – 
Corporate Tax
+ 603 7721 7026

Neoh Beng Guan
Executive Director – 
Corporate Tax
+ 603 7721 7025

Ong Guan Heng
Executive Director – 
Corporate Tax
+ 603 7721 7027

Chang Mei Seen
Executive Director – 
Transfer Pricing
+ 603 7721 7028

Ivan Goh
Executive Director – 
Transfer Pricing
+ 603 7721 7012




Evelyn Lee 
Executive Director –
Penang Tax
+604 238 2288 (ext. 312)

Regina Lau
Executive Director –
Kuching & Miri Tax
+6082 268 308 (ext. 2188)

Titus Tseu
Executive Director –
Kota Kinabalu Tax
+6088 363 020 (ext. 2822)

Ng Fie Lih
Executive Director –
Johor Bahru Tax
+607 266 2213 (ext. 2514)

Crystal Chuah Yoke Chin
Tax Manager –
Ipoh Tax
+605 253 1188 (ext. 320)