Businesses in free zones must pay GST

PUTRAJAYA: The value added services provided by businesses in the free zones are subject to the Goods and Services Tax (GST), Customs GST director Datuk Subromaniam Tholasy said yesterday.

He said although those services rendered are subjected to GST, businesses registered in the free zones can re-claim whatever input tax incurred.

Subromaniam said that it is important for all GST registered individuals or companies to submit their GST statement and makes the necessary GST payment as well as comply to all GST rulings.
"As a responsible GST registered individual or companies, it is important for them to properly file all their input and output tax.

"Furthermore, it is also important for them to submit the GST statement (GST-03) and make payment for the taxes no later than the last day of the month following the next taxable period concerned," he said during a press conference on GST at the Ministry of Finance.

He also mentioned that it is important for the companies to keep sufficient records of all GST-related business transactions for a period of seven years to determine their respective taxation period.

"The monthly taxation period is for companies with taxable turnover for at least RM5 million while the quarterly taxation period is for turnover of less than RM5 million," he added.

Meanwhile, Domestic Trade, Cooperatives and Consumerism Ministry secretary-general Datuk Seri Alias Ahmad issued a stern warning to those who tried to sabotage the implementation of GST by hiking the prices of their goods and services.

He said that the ministry does not tolerate such action and will not hesitate to take stern action against irresponsible traders.