 So, what are the penalties for the various offences? Late GST registration penalty depends on the delay in applying for registration. The penalty ranges from a minimum of 1500 ringgit for a delay of 1 to 30 days and a maximum of 20,000 ringgit when the delay exceeds 360 days. The penalty for late payment has been amended. With effect from 1 January 2016, late penalty of 5 to 25% is imposed for the total tax due. But effected from 1 January 2017, the late penalty is imposed as a percentage of the amount which remains unpaid and it ranges for a minimum of 10% of the unpaid tax for delayed payment of 1 to 30 days. For a delay of more than 90 days, the RMC may institute prosecution and the court may impose a fine up to 50,000 ringgit or maximum imprisonment of 3 years or both, plus the penalty above. When incorrect returns are made, the taxable person on conviction is liable to a maximum fine of 50,000 ringgit or maximum imprisonment term of 3 years or to both and also to a penalty equal to the amount of tax undercharged. The RMC as an alternative may offer a compound for an amount not exceeding 25,000 ringgit. The quantum of tax evasion and fraud penalty depends on how many times the offence has been committed. For the first offence, the offenders liable to a fine not less than 10 times and not more than 20 times the amount of tax or imprisonment term not exceeding 5 years or both. For a second or subsequent offence, the fine would be between 20 to 40 times the amount of tax, imprisonment not exceeding 7 years or both. Where the amount of tax cannot be ascertained, fine of not less than 50,000 ringgit and not more than 500,000 ringgit or imprisonment not exceeding 7 years or both for failure to keep full and true records. Penalty of a maximum fine of 50,000 ringgit or imprisonment term not exceeding 3 years or both. The specified penalty for hindering or obstructing an officer in the course of performing his duty under the GST Act is heavy. On conviction, the offenders liable to a maximum fine of 100,000 ringgit or imprisonment term not exceeding 7 years or both. Most offences on conviction are subject to penalties specified under the GST Act, which prescribed a maximum fine and or a maximum terms of imprisonment. However, for any offence for which no penalty is expressly provided, the Act also provide a general penalty, which carries a fine not exceeding 30,000 ringgit or maximum imprisonment of 2 years or both. Another point to note is that most offences are compoundable. For an offence to be compounded, the GST officer has to make a written offer to the suspected person upon a written consent of the public prosecutor. The tax amount payable is not more than 50% of the maximum fine for that offence and payable within the time specified in the offer. A compound is not a penalty. And following an offer to compound, no prosecution can be instituted against the person. Non-compoundable offences generally relates to the duties of the RMC personnel. For example, refusal to answer questions or giving false information to the GST officer.