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Customs rejects GST claims by 12 local authorities

Syndicated News
Written by Syndicated News

SEPANG, — July 25, 2017: The Customs Department could not proceed with the Goods and Services Tax claims estimated to exceed RM36 million made by 12 local authorities (PBTs) in Selangor because of doubts in the returns submitted.

The department decided on this after finding that the PBTs had failed to fully account for the GST for taxable supplies.

The PBTs were also found to have claimed for items not eligible for claims such as passenger vehicles for PBT’s use categorised as block input tax, clarified Customs director-general Datuk Seri T. Subromaniam

Under the the law, Customs reserves the right to withhold payment of any claims if there are doubts or doubtful statements in the declaration forms submitted.

“It is true that Customs did not pay the amount stated but it is not a debt. Instead it was held back because there were doubts on the claims, which were either baseless, not valid or eligible,” said Subromaniam when commenting on allegations by Balakong assemblyman Ng Tien Chee that Customs owed more than RM36 million in GST claims to the PBTs from September 2016 to June.

Speaking at a gathering with the media here today, Subromaniam said Customs also did not get the cooperation of the 12 when contacted for additional information.

Under the GST Act, a person could be liable to a fine not exceeding RM50,000.00 and/or a jail term not exceeding three years for submitting incorrect returns. — Bernama




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Syndicated News

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