Thorough appraisal: State Domestic Trade and Consumerism Department deputy director Alwi Abdul Hamid (second from left) checking a receipt during a GST inspection at a supermarket in Pahang. — Bernama
PUTRAJAYA: Traders and small businesses must have a point-of-sales (POS) system to issue invoices that are printed and numbered, in compliance with the Goods and Service Tax (GST) standard, by Sept 30.
Customs Department GST Division director Datuk Subromaniam Tholasy said entertainment outlets such as pubs and karaoke joints, pharmacies, bookshops, grocery and sundry stores, hardware shops and mini markets would not be allowed to issue handwritten invoices after that date.
Subromaniam said in an interview that businesses that have frequent sales but are small in value will have to comply with the regulation for printed invoices.
“We are not imposing it on others such as contractors and air-conditioner repairmen, for example. They can still issue the normal receipts,” he said.
“But we are worried about grocery stores, sundry shops, mini markets, pharmacies, and hardware and book shops.
“They must have a POS system or at least a GST-compliant cash register,” he added.
Initially, it was reported that traders and businesses had until April 30 to configure their POS system and issue serially printed invoices.
Subromaniam said his department had received many complaints from consumers who were issued handwritten invoices.
“That is why we are giving these businesses time to ensure that they fully comply with the system and settle the matter once and for all,” he said.
Apart from consumer complaints, Subromaniam said the decision to extend the deadline was because some suppliers of the GST-compliant cash register and POS system had raised their prices two- to three-fold.
He added that the decision for a grace period was also because some businesses had printed their old receipts and invoices.
“We have to be fair to the businesses, but we also need to drive home the message that the money paid by consumers is going into the Government’s coffers.”
Subromaniam said that consumers generally did not mind paying the tax as long as they believed the money was going to the Government.
“When consumers see businesses issuing handwritten bills, they are not confident that the tax is paid to the Government and believe it could be abused,” he said.
Subromaniam added that it was “almost impossible” for businesses to fill out the tax invoices manually because there were many requirements.
He said businesses and traders should not make a fuss about investing in the new system because it only cost “between RM3,000 to RM5,000 and they can claim it as income tax deduction”.
Asked what would happen if these businesses failed to issue printed invoices, he said the department was looking into enhancing the GST regulations.
“For now, we are giving them time to get adjusted to it,” he said.
Subromaniam said the department would send out notices and e-mails to businesses on the extension soon.
