Companies can claim for SST paid stock sold at GST rate

Companies which still have stock on which the Sales and Services Tax (SST) has been paid when the Goods and Services Tax (GST) is implemented on April 1, can make a claim for the difference with the Customs Department.

Deputy Finance Minister Datuk Ahmad Muslin said although the SST at 10% has been paid, they can only levy the 6% tax under the GST.

"Thus, they can forward a claim to the Customs Department for the difference, together with a valid invoice," he added.

Ahmad Muslin said the government had made a sizeable allocation to deal with any claims.

He said that companies involved in the implementation of the GST should be clear about their ability to make claims on the difference as it had been explained to them by the authorities.

"The companies will also be given a few months to make their claims. "I want to state that about 50,000 companies have yet to register for the GST and face the likelihood of action, including a RM15,000 compound, if they fail to do so.

"To date, more than 300,000 companies have registered for the GST and the understanding of the people of the tax is also getting better, following the information campaign via the media by the government," he added. – Bernama, February 22, 2015.