Wee: Documents must be error-free to get quick GST refund

PETALING JAYA: Businesses will get their refunds under the Goods and Services Tax (GST) on time, if their documents are error-free and their profiles at the Customs De­­partment’s GST website are updated.

Minister in the Prime Minister’s Department Datuk Dr Wee Ka Siong was responding to complaints that many companies were facing cash flow problems because of delayed refunds.

“The Customs Department receives between 70,000 and 80,000 monthly filings for GST refunds and about 40% of them have been getting their refunds within the stipulated 14 days,” he said after opening the 15th Forum of Asia Pacific Graphic Arts here yesterday.

Under the GST Regulation 2014, refund of input tax is made within 14 days of online submission or 28 working days if filed manually.

Dr Wee urged companies filing for refunds to ensure their documents were complete and correct.

“They should log on to the Cus­toms Department’s GST website to check and update their profiles on registered names and addresses. The department also needs the companies’ up-to-date bank information,” he said.

Dr Wee said there were cases of companies that intentionally understated their profits but expected “unreasonable refunds”.

“The department’s system will raise this as a reason for alert and make the companies verify the irregularity,” he said, adding that it wasted the time of both parties. Dr Wee, however, reassured businesses that the Government would listen to their problems and address them, adding that he was aware that the delays in getting refunds were causing huge cash flow problems for many small-and-medium enterprises (SMEs).

“We need to understand the pro­­blems faced by the SME’s. They have to fork out 6% for GST first. If they can’t receive the re­­funds early, they have to look elsewhere for working capital so that operations can continue to run,” he said.

Dr Wee said although both the Customs Department and companies filing for GST returns needed to work together to solve the issue, more effective mechanisms to disperse refunds also needed to be implemented so that businesses were not unduly affected.

“The Finance Ministry is working hard to find ways to speed up the disbursement of refunds,” he said. The event was Dr Wee’s first meeting with members of the media since he underwent surgery on June 26. Looking much slimmer, he was his usual jovial self.

“If this is a result of my efforts in losing weight, you should all congratulate me. Even so, I’m still far from achieving my ideal BMI (body mass index),” he joked.