 How does full GST compliance help? The GST system has a special in-built mechanism feature of automatic deduction of output tax and claim for input tax. With this mechanism in place, full compliance by a business entity benefits the government as delivery or collection of tax revenue is enhanced. The entity itself, since administration of tax liabilities is made easier and at lower business cost. This is made possible as input tax on raw material and incurred expenses are recovered. Also, full compliance helps mitigate risk and prevent unnecessary stress of getting caught during the tax audit. So, what are the offenses that could be committed by a taxable person? Under the GST Act, offenses can be broadly categorized into failure to register, late payment, incorrect returns, tax evasion and fraud, failure to keep full entry records, hindering or obstructing a GST officer and others. To collect GST from customers, a taxable person must be registered with the Royal Malaysian Customs, the RMC. Following the introduction of GST on 1 April 2015 is mandatory for a business entity to register with a new system when it has made more than 500,000 ringgit in 12 months. It anticipates turnover to be more than 500,000 ringgit in the next 11 months including the current month. It takes over as a going concern another business making taxable supplies. A person who is liable to be registered but fails to apply for GST registration should immediately apply for registration within 28 days. The next offense is the failure to furnish returns and pay within one month from the end of the respective taxable period. Taxable period is normally monthly or quarterly. Monthly taxable period must be used if annual taxable turnover is 5 million ringgit or more. Hence, if for example the taxable period is the second quarter of the year, that is from 1 April to 30th of June, the taxable person has to file the tax return and at the same time pay by the 31st of July. Offense for incorrect returns involved, the omission of any information from the return, understatement of any output tax or overstatement of any input tax in a return or the provision of any incorrect information in relation to any matter affecting liability to tax. Tax evasion and fraud is a much more serious offense because it involves intent on the part of any person to evade or to assist any other person to evade tax. Such assistance could be from for example an accountant or a tax agent. The offence is performed willfully, which means the person knows that what is doing is wrong and yet would knowingly omits from a return any information that affects the amount of chargeability to tax, makes any false statement or entry in a return, provides false answer in writing or otherwise to any question or request for information, prepares or maintains false books of accounts in voices or records or authorizes another person to falsify such records or makes users or authorizes the use of any fraud, artifice or contravence. An offence is also committed if a taxable person fails to keep full and true records written up to date of all transactions that affect or might affect liability to tax. These include all records of goods and services supplied by or to that taxable person, example being in voices delivery orders, all records of importation of goods such as import declaration and custom documents. Other records as may be determined by the DG of the RMC. A taxable person is also required to keep documents to substantiate input tax claim and these documents are to be kept for a period of 7 years. Specific guide as to what record should be kept is actually provided in the RMC's guide on tax invoice and record keeping. The guide specifies registration records, taxation records such as GST returns and custom receipts, business transaction records such as sales and purchases related documents and business correspondence, accounting records example being audited financial statements, data and creditor list, other records such as disposal of goods and gifts to customers. It is also an offence if a person in any way assaults, hinders or obstruct a GST officer in the performance of his duties or fails to give reasonable facilities or assistance to any GST officer in the performance of his duties.