The GST is introduced as part of the Malaysian government’s effort to replace the current consumption tax to make the overall tax system more efficient. To be compliant with the tax law, proper and careful record-keeping is absolutely critical. But getting all the numbers right may be easier said than done.
What does it mean to be efficiently compliant with the GST regulations? It means having clear visibility to the detailed breakdown of your business transactions. It means having to submit the GST returns by a stipulated deadline. It also means assisting with the auditing practice of the Royal Malaysian Customs Department (RMCD) to ensure proper filing and recording. And all these are extra effort required of your company. As an SME, you may have limited manpower and resources to handle the extra obligations. And the penalty of making a mistake is very costly.