Businesses that charged for non-GST items agree to pay back

ALOR SETAR: Businesses that have unintentionally collected Goods and Services Tax (GST) on non-GST items have until April 30 to refund the taxes to customers.

State Customs director Abdul Latif Abdul Kadir said some department stores had mistakenly collected GST taxes on non-GST goods.

“They agreed to refund the taxes and we are advising them as the mistake was due to technical and misunderstanding.

“We will, however, take stern action against those who do it intentionally and offenders will face a fine of up to RM30,000 or a jail term of up to two years,” he said during a joint operations with the state Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) to check on traders at a shopping mall in Mergong near here.

State KPDNKK deputy director Khalid Tik said 21 notices were issued to traders for various offences since April 1.

“Compound fines amounting to RM4,500 were collected from them. Since April 1, we have received 234 complaints on GST.”

He added that enforcement officers were also on the lookout for non-registered traders who were charging and collecting GST.

“Those found committing the offence will be compounded RM500 on the spot,” he said.