Do You Know What Trigger GST Audit

Welcome to another series of GST educational posts --> Do You Know What Trigger GST audit.

As always, this is a 5 minutes education posts to explain WHAT, WHY,  and HOW.

 The 7 Reasons Trigger GST Audit?

(1) Your revenue trend is < or > industry average?

(2) Your input and output tax ratio to Supplies Value is < or > industry average

(3) Your CAPEX ratio to supplies value  is < or > industry average

(4) Previous GST filling exception, especially repeat cases

  • Late filling
  • Late payment
  • Filling errors
  • GST amendment & request of refund

(5) Incorrect Tax Code - Supply / Sales

  • Standard rated supply (SR) but no GST value (vice versa)
  • Export supply (ZRE & ZDA) but not supported with Custom Form K2 no
  • Not accounted deemed supply (DS) i.e. imported services; gift value > RM500;
  • Incidental income (IES); Zero rated (ZRL); Relief Supply (RS); Disregard Supply (GS)
  • Adjustment tax code (AJS)
  • Date – Invoice date unmatched with reporting month (quarter)
  • Tax invoice / Credit Note (CN) number not in running sequence

(6) Incorrect Tax Code – Purchases

  • Standard rated purchases (TX) but no GST value (vice versa)
  • Import purchase (IM, IS) but not supported with Custom Form K1 no
  • Capital goods purchases not using TX-CG code
  • Claim on purchases under Blocked Input Tax (BL)
  • Out of Scope(OP); Relief supplies (RP); Exempt Supply (EP); Disregard Supply (GP); Supplies by Non GST registered trader (NR)
  • Adjustment tax code (AJP)
  • Date – Invoice date unmatched with reporting month (quarter)
  • Purchase without Tax invoice / Debit Note (DN) number

(7) Random sampling


Do You Know What Trigger GST audit - WHAT NEXT ?

The good new is except reason no 7, you can manage the other 6.

We had developed a analysis tool that can generate a dashboard report in a day, if your GST data source is from SQL Accounting Program.

If your data source is from other accounting program, we will need extra days to format the data source, so, it could run on our tools.

Interested to know more. Feel free to contact us



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