Six types of businesses found with most GST receipt offences

Six types of businesses registered for the Goods and Services Tax (GST) have been identified as the biggest culprits for not providing printed invoices to consumers.

According to the Customs Department, the six are restaurants, sundry shops or minimarket, bookshops, entertainment centres, pharmacies and hardware shops.

Customs Department GST Division director Datuk T.Subromaniam said all businesses are required to install a point of sale (POS) computerised system according to the required standard under the GST Act 2014.

"Customs have received many reports from consumers on the six types of businesses which issued printed receipts without the required information or provided handwritten receipts instead.

"The matter has created doubts among consumers as the receipts did not specify the amount of tax charged and as such some traders have taken advantage to charge more," he said when contacted by Bernama today.

Based on the records from April 1 to 5, a total of 1,617 complaints on GST had been received in which almost 40 per cent were related to tax invoices issued by the registered traders.

Subromaniam said confusing transaction process was also among problems faced by customers.

"The directive on installing POS system for all businesses was to ensure a systematic and transparent sales and purchase process to facilitate traders record their business.

"Besides being compliant for the launch of GST taxation system, all information recorded and receipts generated are considered valid for the purpose of auditing and reporting and as a reference by the authorities," he said.

Earlier, all businesses registered with GST were given until April 30 to install the system, however a discussion with the agencies involved extended the deadline to Sept 30.

"After the grace period, all related businesses will not be allowed to issue hand written receipts except when the POS machine is not working or when there is a power failure and only handwritten receipts in compliance with GST regulations would be accepted,"Subromaniam said.

Meanwhile, the Federation of Malaysian Consumer Associations (FOMCA) deputy president Mohd Yusof Abdul Rahman said the organisation supported the directive to issue printed receipts.

"Based on our monitoring since GST began, we found many errors on the receipts issued including not having correct details on cases reported by consumers," he said.

Mohd Yusof said the action of traders in not complying with GST directives is among the cause of much confusion.

"The problems should be addressed quickly, otherwise consumers will get more confused when receipts are not in accordance to GST standard," he said.