Top 7 GST OFFENCES and RISK – RM50K and..

Welcome to our 5 minutes GST educational posts i.e. the Top 7 GST Offences and Risks.

Top 7 GST offences and its Penalties

The 1st shocking facts is that incorrect GST return, taxpayer is subjected to

a) A fine up to RM50,000; and  / or

b) Imprisonment term up to 3 years; and

c) Penalty up to one time (100%) of tax understated

Incorrect return primarily refer to key entry errors and used of wrong tax code.

Omission means incomplete data reported in return. So, it means a net tax understated and overdue to Custom.

Root cause of incorrect return 

  • Competent accounting staff in GST and its tax codes;
  • Lack of a quality SOP to proactively filtered errors.

The 2nd shocking facts is failure  to keep record, taxpayer is subject to,

a) A fine up to RM50,000; and  / or

b) Imprisonment term up to 3 years.

EXAMPLE of Failure to Keep Record

Based on current Custom audit practice, upon taxpayer is selected for audit, taxpayer must submit its  returns details to Custom, within 2 weeks from request date.

So, if taxpayer unable to submit details within 2 weeks, is an offence under the failure to keep record.

You may find the rest of shocking facts in a table (i.e. top 7 GST risks and penalty) attached in this post.

Also, you may reference to


The good new is, you can mitigate such risk of RM50,000 with no cost or a cost of < RM1,000.

Look up for my next post to help you to mitigate such risk.

Where applicable, DIY tools in EXCEL file, will be proposed for your work environment.

I hope you find the post useful.

Feel free to comment on and ask question about your specific GST challenges and problem.

Till then, take care in balancing your life style journey and GST compliance journey.



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