Customs, ministry to identify traders charging both SST, GST in May audit

A notice announcing the GST is displayed on the shelves of a supermarket in Kuala Lumpur April 1, 2015. — AFP pic
A notice announcing the GST is displayed on the shelves of a supermarket in Kuala Lumpur April 1, 2015. — AFP pic

PUTRAJAYA, April 20 — Traders were warned today against charging customers for both the old Sales and Services Tax (SST) and the newly-introduced Goods and Services Tax (GST), which the Customs Department said could be one reason behind the spike in prices of certain items.

Customs GST director Datuk Subromaniam Tholasy said his department and the Domestic Trade, Cooperative and Consumerism Ministry (KPDNKK) will conduct an audit next month to identify those who have been double-charging customers.

He said that Customs and KPDNKK already have a joint working committee on the matter.

“If they don’t want to claim for SST and continue to impose it on top of the six per cent GST charge, then I would like to stress that it is unfair and not permitted,” he said adding that input tax is claimable and should no longer be treated as cost.

“They (traders) cannot reason by saying they are incurring additional cost since they can claim their SST,” he added.

Subromaniam also reminded businesses to collect their SST refunds from the government and stressed that once these are collected, the prices of goods must be readjusted to include the six per cent GST.

The traders, he reiterated, are not permitted to impose the SST on the goods once they charge for GST.

He said to date, only three companies have claimed their refunds for the SST from the government, amounting to a RM93,873 payout.

“Technically, they (traders) have six months to claim the SST which they have paid for their goods before GST came into being.

“One of the condition for the claim is that the traders pay the sales tax of their goods as stated in their invoice within 60 days of it being issued.

“These may be why the traders are yet to pay and claim thereafter,” Subromaniam said.

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