What are the consequences for businesses failing to submit GST returns by Oct 11?

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Consequences for Businesses Failing to Submit GST Returns by October 11

Businesses that fail to submit their Goods and Services Tax (GST) returns by October 11 will face auto-assessment, where their tax liabilities will be calculated based on their declared revenue at the time of GST application. This measure affects 22,184 businesses, including 800 with turnovers exceeding RM5 million, who have not yet filed their GST-03 statements. These defaulting businesses represent approximately 6% of the total 390,000 GST-registered entities.
Auto-Assessment and Payment Notices

Following the auto-assessment, the Customs Department will issue tax claim notices. Businesses will then have a two-week period to settle the amounts specified in these notices. Companies with a turnover above RM5 million are mandated to submit their returns on a monthly basis, whereas other businesses are required to do so quarterly.
Penalties for Non-Compliance

Failure to pay the assessed tax liability within the stipulated two weeks will result in penalties. The first offense incurs a compound of RM25,000, with a further RM25,000 for a second offense. Continued non-compliance can lead to more severe legal repercussions.
Legal Action and Further Sanctions

Beyond compounds, persistent non-compliance with GST return submissions can result in legal proceedings under Section 41(6) of the GST Act. This may lead to a fine of up to RM50,000, imprisonment for a term not exceeding three years, or a combination of both penalties. The Customs Department has indicated a willingness to assist businesses in understanding the submission process and addressing any issues they may encounter.

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What are the consequences for businesses failing to submit GST returns by Oct 11?

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