Input tax claims for transactions prior to GST registration require strict compliance with statutory provisions, and lack of authorization for such claims can lead to rejection.

Introduction

[1] The Applicant filed an application for judicial review (Enel. 10) under O 53 of the Rules of Court 2012 (ROC).

[2] Leave for the application was granted to the Applicant on 5 January 2023 against the Respondent to seek the following reliefs:

2.1. a declaration that the Respondent is bound by s 38, read together with s 39 of the Goods and Services Tax Act, 2014 (GST Act), which provides that any taxable person is entitled to credit for so much of his input tax that is allowable and reasonable to be attributable to any taxable supply made or to be made by the taxable person in the course or furtherance of any business in Malaysia, and that the Applicant is entitled to credit for so much of its input tax that was incurred to acquire the lease to two leasehold properties and to acquire a tank terminal facility to carry out its business activities;

2.2. a declaration that the Respondent shall give effect to reg 38(1)(a)(i) of the Goods and Services Tax Regulations 2014 (GST Regulations), which provides that any taxable person claiming input tax shall do so on the return furnished by him for the taxable period in which he holds a tax invoice in his name, and that the Applicant is entitled to credit for so much of its input tax that was incurred to acquire the lease to two leasehold properties and to acquire a tank terminal facility to carry out its business activities, which the Applicant claimed on the return furnished by the Applicant for the taxable period in which the Applicant holds the relevant tax invoices;

2.3. in the alternative, a declaration that the Respondent shall give effect to reg 38(4)(a) of the GST Regulations, which provides that where any claim of input tax has not been made in the taxable period in which the taxable person holds a tax invoice in his name, the Respondent may allow such person to make a claim within 6 years from the date of supply to him, and that the Applicant is entitled to credit for so much of its input tax that was incurred to acquire the lease to two leasehold properties and to acquire a tank terminal facility to carry out its business activities, which the Applicant claimed within 6 years from the date of supply of the lease and tank terminal facility to the Applicant;

2.4. a declaration that nothing in reg 36 of the GST Regulations, applies to disallow the Applicant's claim for so much of its input tax that was incurred to acquire the lease to two leasehold properties and to acquire a tank terminal facility to carry out its business activities;

2.5. a certiorari order to move the Court to quash the decision of the Respondent in the form of the letter dated 6 September 2022 (Decision) to reject the Applicant's entire claim for RM9,195,449.03 of its input tax as the Applicant had not amended its goods and services tax return to exclude the input tax that was incurred to acquire the lease to two leasehold properties and to acquire a tank terminal facility to carry out its business activities;

2.6. a mandamus to compel the Respondent to refund to the Applicant RM9,195,449.03 of its input tax within 30 days from the date of judgment with: (i) interest accruing at the rate of 5% per annum on the said sum from 6 September 2022 up to the date of judgment; and (ii) interest accruing at the rate of 5% per annum on the said sum and the sum stated in para 1(f)(1) above, from the date of judgment until the date of full settlement;

2.7. costs;

2.8. all necessary and consequential directions