250 GST Accounting Training

Slide 1

What is GST?

How does GST work?

Proposed GST Model

What is GST?

How does GST work?

Proposed GST Model

What is GST? 

Consumption tax in the form of value added tax

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Also known as Value Added Tax (VAT)

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GST incurred on inputs is allowed as a credit to the registered person

Proposed GST Model – Standard-rated

To replace current tax system Sales Tax & Service Tax (SST) 5%, 6%, 10% & specific rate Various threshold

GST Rate =6% Threshold = RM500,000

What is GST? INPUT Raw materials

OUTPUT Goods

Rent

Business Utilities

GST on outputs

GST on inputs

= Input tax

Services

Claimed input tax

= Output tax

What is GST? When your output tax is more than input tax, you are in a Payable position. ____________ Output Tax

Input Tax

Payable to Custom

What is GST? When your input tax is more than output tax, you are in a Refundable position. ____________

Output Tax

Input Tax

Refund from Custom

Type of Supply TYPE OF SUPPLY

Taxable

NonTaxable

OUTPUT TAX

INPUT TAX

Standardrated (6%)

6%

Claimable

Zero-rated

0%

Claimable

Exempted

No GST Charged

Not Claimable

Out of Scope

GST disregard

Not claimable

How Does GST Work? Standard-Rated

GST AT 6%

Manufacturer Wholesaler

Retailer

Consumer

Claim Back 6%

How Does GST Work? Standard-Rated

GST AT 0%

Manufacturer Wholesaler

Retailer

Consumer

Claim Back 0%

How Does GST Work? Zero-Rated

0%

Exported Goods & Services First 300 units (Domestic Users)

How Does GST Work? Exempt GST AT 6%

Supplier

NO GST

Private hospital Consumer NO GST

Proposed GST Model – Exempt

Rail

Buses

Highway toll

Private health & education

Funeral in package

Water transportation

Residential property

Taxi/ Hired car

General use/ agriculture land

Financial services

Proposed GST Model – Out of Scope Federal & State Government Out of Scope

Subject to GST

Local Authority & Statutory Body

All supplies by Federal & State Government

Supplies made in the regulatory and enforcement (R&E) functions

Supplies that have been directed by Minister in the GST (Government Taxable Supply) Order

Non R&E functions i.e. Business activities

e.g. Assessment rate collection, issuance of licenses, penalty

e.g. Rental facilities

e.g. Supply made by RTM, Prison Department

Acquisitions

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Need to pay GST on their acquisitions Relief on selected goods

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Need to pay GST on their acquisitions Relief on selected goods

Special Refund Entitled to special refund if 

claimant is registered (mandatory) person

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hold goods on 1 April 2015 for making taxable supply

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goods are subject to sales tax

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holds relevant invoices or import document to show sales tax has been paid

Special Refund Goods not eligible for special refund 

capital goods e.g. building and land

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goods used partially or incorporated into other goods e.g. raw materials, work in progress

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goods for hire e.g. cars, generators

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goods not for business e.g. personal use

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goods not for sale or exchange e.g. containers, pellets, stationeries, moulds, manufacturing aids

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goods entitled to drawback

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goods allowed sales tax deduction under credit system

Special Refund Reduce special refund to 20% (20% method) 

purchase goods from non licensed manufacturers

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goods are subject to sales tax

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holds invoices which does not show sales tax has been charged

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claimant is a registered (mandatory) person

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hold goods on 1 April 2015 for making taxable goods

Special Refund 20% method 

reduce the actual purchase price by 80% for goods held on hand on 1 April 2015 Special refund = actual price x 20% x sales tax rate

Example: Purchase RM15,000 of raw materials but holds RM10,000 on 1 April 2015 Special refund = RM10,000 x 20% x 10% = RM200

Special Refund Manner to claim special refund 

claim within 6 months from 1 April 2015

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for special refund < RM10,000 require audit certificate signed by a chartered accountant

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for special refund ≥ RM10,000 require audit certificate signed by an approved company auditor

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use special form to claim refund (manual or online)

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to be given in 8 equal instalments over a period of 2 years

Panel Decision 2/2014 v)

The value of the goods held on hand on 1/4/2015 for purposes of the special refund can be ascertained as follows: a) Specific identification If the goods held on hand on 1/4/2015 can be attributed to invoice or Customs Form No. 1, based on specific description, series, no products, brands or other specific identification, such invoice or Customs Form No.1 shall be used. Example: Goods with serial number ABC123 and the related invoices are invoices issued on 3rd February 2014 as the serial number of ABC123 appeared on the invoices. The value in such invoices can be used for the special refund.

Panel Decision 2/2014 b) First in First out (FIFO)

If the goods held on hand on 1/4/2015 can be directly associated with many invoices due to general product description, value value on the latest invoice before the 1/4/2015 shall be used. If the quantity of goods held on hand exceeds the quantity stated in such invoice, the value for the remaining number of goods should be based on the quantity that can be covered in the previous pr evious invoices issued in sequence prior to the final invoice before the 1/4/2015.

Panel Decision 2/2014 Example: Total goods held on hand on 1st April 2015

Related Invoice

Sales Tax Paid

Description

Quantity

Date

Quantity

Price per unit (RM)

Per unit (RM)

Sandal

3000 unit

1st March 2015

800 unit

2.00

0.20

15th Dec 2014

1,500 unit

1.80

0.18

1st Jun 2014

2,500 unit

1.70

0.17

The value for claiming special refund – refund – (800 X RM0.20) + (1,500 X RM0.18) + (700 X RM0.17) = RM549

vi) has

has

The value determined as in sub (v) can only be used when payment to the supplier been made. Example: From the above example, If the latest invoice before 1st April 2015 (1st March 2015) not been paid by a taxable person, the value for claiming special refund will be (1,500 X RM0.18) + (700 X RM0.17) = RM389

1. Installation –

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Before installation or upgrades, always backup your existing database. Install AutoCount Accounting version 1.8 (32/64bit) or AutoCount Express 1.8 (32/64bit). A separate new program folder (Accounting 1.8) and short cut icon will be created. Your existing folder and shortcut of version 1.3/15/1.6 will remain untouched. For existing user who upgrades from earlier version (1.3, 1.5 or 1.6), you need to request for new license code that can be worked on version 1.8. For education purpose, license code is not needed. For learning purpose, create a new account book with company name: AutoCount GST Exercise. AutoCount Backup Server:

1. Installation Upon saving the newly created account book, the following screen ‘Add to Scheduled Backup’ will be prompted, if you do not want to add this account book into the list of scheduled backup, click Cancel. In order for the scheduled backup to work, you must install AutoCount Backup Server. By default, during installation, if you have chosen Standalone Installation OR Network Installation > Server Installation, AutoCount Backup Server will be automatically installed. Should it not been installed, just look for the installer (AutoCount Backup Server Setup.exe) on the DVD and double click to install it.

1. Installation •

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Task Name: Assign a name for this scheduled backup task. A Task ID will be auto generated. Server Backup Directory: The path of backup destination. E.g. D:\AutoCount Backup\ Backup File Prefix: Set the prefix for the name of backup file to be generated. E.g. ACSB Apply password to your Backup File: this is to set password for the backup file to be generated. This password will be needed when restoring the backup file. Backup Start Date/Time: set the date/time for the very first backup file to commence Repeating: set if you want to repeat the backup task.

1. Installation •

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Repeat Type: choose how you would like the backup task to be repeated: Every Hour, Every Day, Every Week Day or Every Month. Notify on failed/success: check the checkbox so that you will be notified of the failure/success of the scheduled backup task via the email address provided by you. Email: key in the email address if you have chosen to be notified on failed/success. Backup Service Port: set the backup server service port. Usually this is auto-set. Backup Service Host: this is the host PC where backup server is installed.

1. Installation •

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Save: to confirm adding the task of scheduled backup for this account book. Cancel: to choose not to add the task of scheduled backup for this account book. The service will then keep prompting a reminder message such as: Warning: Database xxx does not exist in Scheduled Backup… until you go ahead and set the task.

Login to the newly created account book: AutoCount GST Exercise

2. Check ‘Use Goods and Services Tax’

1. General > Goods and Services Ta Tax x Check this if most of your sales are tax inclusive

To copy GST setting from another account book

3. Set GST start month and year (it should be 04-2015 or later)

4. Set taxable period (usually 3 or 1 month)

2. Activate GST Malaysia •

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Tools >Options > General > Goods & Services Tax Use Goods & Services Tax: Tax: check this checkbox to activate a GST menu on the main menu bar. GST bar. GST Rate: Rate: set the GST rate to 6.00 Rename Tax to: to: key in GST. In some countries, it may be named VAT. Must specify Tax Code: Code: this checkbox if checked will make it compulsory to assign a tax code for each of the of the transactions. No ‘null’ value is allowed. Tax Reporting Currency Code: Code: This feature is used in i n Singapore version.


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Enable Tax Document Number Management: Management : This feature is used in other countries where the government controls the tax document numbers. Allow Different Tax Currency Rate: Rate: This is used in Singapore version. Use Inclusive GST for all Sales documents: documents: Check this if most of your sales pricing are inclusive of GST. of GST. You may, however, change the Inclusive to become Exclusive (or vice versa) during transaction entry. entry.


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GST Setting From Other Account Book: this is used to import settings from another account book. Items can be imported are: customized reports, GL accounts (including account type, journal type and currency, MSIC code…), tax codes, stock item’s default tax code, debtor/creditor default tax code. GST Start Date: the earliest start date (month) will be the effective date of GST in Malaysia i.e. 04-2015. In actual case, your start date will depend on your registration date. Just follow the instructions as shown on your registration approval letter.


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GST Taxable Period (months): In most cases, taxable period will be 3 (months). Some companies (e.g. whose annual turnover is > 5 million) may have monthly taxable period. However the taxable period will be assigned by Royal Malaysian Customs Department (RMCD) upon your registration as GST company. Just follow the instructions as shown on your registration approval letter. For learning purpose, use current month as GST Start Date, and set taxable period to 1 (month).

How to implement GST setting for existing AutoCount Accounting users? The use of ‘GST Setting From Other Account Book’ •

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Note: It’s advisable to make early preparation, understand the setting and use of GST features before effective date. You may make the GST setting in advance and have a try run. Create a backup file for existing account book (e.g. Account Book 1) Restore the backup file onto a new account book (e.g. Account Book 2). Perform GST setting in this account book. Including update/insert GL Accounts, assign MSIC Codes, GST Code Maintenance, set


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default Tax Code by Debtors/Creditors/Stock Items, Customize reports… you may test run with some transactions to feel the whole cycle of GST processes. When getting close to the effective date, logon to your real account book (Account Book 1), go to Tools > Options > General > Goods & Services Tax, click on GST Setting From Other Account Book.

1. define the Server name and Database to be copied from.

2. check if you’d like to include

any customized reports.

3. select contents to be copied..

4. Click to start copy.


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Define the Server Name, select the Database to copy from (in this case it means Account Book 2), select the options to be copied. Click Copy. Now your account book is equipped with GST settings, you may perform entries/transaction records involved GST.

3. Update Company Profile General Maintenance > Company Profile Key in the Tax/GST Registration No

Key in GST ID and Self-Billed Approval No (if any)

3. Update Company Profile Click on the tab of Logo & Report Header Click on Set Default Report Header

1. Click this tab

2. Click to set the default report header 3. You may rearrange the layout and change the font type/size/color.

GST Tax Code - Purchase Tax Code

Tax Rate

Description

TX

6%

Purchases with GST incurred at 6% and directly attributable to taxable supplies.

IM

6%

Import of goods with GST incurred

IS

0%

Imports under special scheme with no GST incurred (e.g. Approved Trader Scheme, ATMS Scheme).

BL

6%

Purchases with GST incurred but not claimable (Disallowance of Input Tax) (e.g. Medical expenses for staff).

NR

0%

Purchase from non GST-registered supplier with no GST incurred.


Tax Rate

Description

ZP

0%

Purchase from GST-registered supplier with no GST incurred. (e.g. supplier provides transportation of goods that qualify as international services).

EP

0%

Purchases exempted from GST. E.g. purchase of residential property or financial services.

OP

0%

Purchase transactions which is out of the scope of GST legislation (e.g. purchase of goods overseas).

TXE43

6%

Purchase with GST incurred directly attributable to incidental exempt supplies.


Tax Rate

Description

TXN43

6%

Purchase with GST incurred directly attributable to non-incidental exempt supplies.

TX-RE

6%

Purchase with GST incurred that is not directly attributable to taxable or exempt supplies.

GP

0%

Purchase transactions which disregarded under GST legislation (e.g. purchase within GST group registration).

AJP

6%

Any adjustment made to Input Tax e.g.: Bad Debt Relief & other input tax adjustment.

GST Tax Code - Supply Tax Code

Tax Rate

Description

SR

6%

Standard-rated supplies with GST Charged.

ZRL

0%

Local supply of goods or services which are subject to zero rated supplies.

ZRE

0%

Exportation of goods or services which are subject to zero rated supplies.

ES43

0%

Incidental Exempt supplies.

DS

6%

Deemed supplies (e.g. transfer or disposal of business assets without consideration).

OS

0%

Out-of-scope supplies

GST Tax Code - Supply Tax Code

Tax Rate

Description

ES

0%

Exempt supplies under GST.

RS

0%

Relief supply under GST.

GS

0%

Disregarded supplies.

AJS

6%

Any adjustment made to Output Tax e.g : Longer period adjustment, Bad Debt, recover, outstanding invoice > 6 months& other output tax adjustments.

4.1 Configure Malaysia GST Go to GST > Tax Code Maintenance > Configure Malaysia GST

Click this

Click this

Choose Yes or No

Click this

Choose Yes or No

Click this

Choose Yes or No

Click this

Click Finish

The system has proposed few new GL accounts and if you agree, will generate them and tie to respecti ve tax codes.

Check to select. Uncheck to ignore.

You may change the proposed account no., account description and account type.

Click Save

Tax code maintenance is completed. To modify the selection, click on Configure Malaysia GST.

Tax codes for Input Tax

For input tax, additionally, check the following tax code: NR and ZP.

Click Save

4.2 Setting Default Tax Code in general Click to select a tax code (for each category), click on Edit and set as Default 2. Check Default

3. OK

1. Highlight a tax code of input tax

2. Check Default

3. OK

1. Highlight a tax code of output tax

4.3 Setting Default Tax Code by Stock Item •

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You may set default tax code for any of the Stock Items, especially if the tax code for such item is different from default tax code in general. Go to Stock > Stock Item Maintenance, select the stock item, click on Edit, set the default Supply Tax Code and Purchase Tax Code:

4.4 Setting Default Tax Code by Debtors/Creditors You may set default tax code for any of the debtors/creditors. For example, default tax code for an overseas customer can be set to ZRE which means Output Tax 0% - Zero Rated Supplies (Exports); default tax code for a supplier who has not registered as GST Taxable person should be NR (Input Tax 0% - Non GST supplier)… Setting Default Tax Code for Debtor •

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Go to A/R > Debtors Maintenance Select the debtor, click on Edit, click on Others tab, set the default GST Tax Code: Similarly for Creditor Maintenance.

Assign default tax code

4.5 Setting Default Setting Default Tax Code by GL Accounts You may set default tax code for any of the GL accounts at G/L > Account Maintenance. (see chapter 5) 4.6 How does Default Tax Code work •

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For sales and purchase documents, the priority will be given in the following order: Debtor/Creditor > Stock Item > Tax Code Maintenance. Please be aware that even though default tax code is set, you are able to select other tax code during transaction/entry. For GL, AR and AP entries, the priority will be given in the following order: Debtor/Creditor > Account Maintenance. Please be aware that even though default tax code is set, you are able to select other tax code during transaction/entry.

4.6 How does Default Tax Code work For example: Scenario 1: •

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If you are making wholly standard rated supply, you may set the default tax code as follow:

At Tax Code Maintenance: default input tax code (TX_S), default output tax code (SR_S) At Creditors Maintenance: set default tax code (NR) for those suppliers who are not GST-registered; (IM-GDS) for overseas suppliers of standard rated goods; (IM-SVC) for overseas suppliers of standard rated services. At Debtors Maintenance: set default tax code (ZRE) for those overseas customers. At Account Maintenance: set default input tax code (BL) for expenses accounts where input tax is blocked.

4.6 How does Default Tax Code work For example: Scenario 2: If you are making both standard-rated supply (majority) and zero-rated supply, you may set the default tax code as follow: •

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At Tax Code Maintenance: default input tax code (TX_S), default output tax code (SR_S) At Stock Item Maintenance: for zero-rated items, default input tax code (ZP) and default output tax code (ZRL); you may use ‘Easy Item’ to easily set the default tax codes for large volume of stock items. Alternatively you may also update the related fields using ‘Export to Excel’ and “Import From Excel’. At Creditors Maintenance: set default tax code (NR) for those suppliers who are not GSTregistered; (IM-GDS) for overseas suppliers of standard rated goods; (IM-SVC) for overseas suppliers of standard rated services. At Debtors Maintenance: set default tax code (ZRE) for those overseas customers. At Account Maintenance: set default input tax code (BL) for expenses accounts where input tax is blocked.

4.7 Examine Default G/L Account at GST Processor •

Go to GST > GST Processor, Options > Settings

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Check if the respective GL accounts are assigned correctly. Click on Options > Settings

Default GL account for posting purpose

Summary style (recommended) OK

4.7 How to use Easy Item for stock item setting (setting of default tax code by items) Go to Stock > Stock Item Maintenance

Click on Find Stock Item

4.7 How to use Easy Item for stock item setting (setting of default tax code by items) 1. key in keyword / define search criteria for searching purpose

3. Check All

4. Easy Item

2. Click on

4.7 How to use Easy Item for stock item setting (setting of default tax code by items) 5. click to select all

6. Range Set

7. check the checkboxes and define the default tax code for all the selected stock i tems.

8. Save

5.0 Update Chart of Account Account 5.1 Insert new GL Accounts (Whichever applicable): A/C Type

A/C No

A/C Description

FIXED ASSETS

GST-2010

PASSENGER CAR

FIXED ASSETS

GST-2015

ACCUM.DEPRN.PASSENGER ACCUM.DEPRN.PASSENGER CAR

COST OF GOODS SOLD

614-0000

CUSTOMS DUTY

EXPENSES

GST-9040

GIFTS

EXPENSES

* GST-9050

EXPENSES

GST-9060

ROUNDING ADJUSTMENT MAINTENANCE OF PASSENGER CAR

Related setting at: •

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Tools > Options > Invoicing > Cash Sale, check the checkbox of ‘Enable 5 cents rounding adjustment rounding adjustment in Cash Sale’ Tools > Options > G/L > Default Accounts, assign Rounding Adjustment Account Account = GST-9050

5.0 Update Chart of Account Account 5.2 Assign Assign MSIC Code Cod e (Whichever applicable): app licable): A/C Type Type

A/C No

A/C Description

SALES

500-0000

SALES

62010

SALES

500-1000

62010

SALES ADJ

510-0000

CASH SALES RETURN INWARDS

Define MSIC code

MSIC Code

62010

5.0 Update Chart of Account Account 5.2 Assign Assign MSIC Code Cod e (Whichever applicable): app licable): MSIC Code: •

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MSIC Code is your major industry code (5 digit) according to Malaysia Standard Industrial Classification Industrial Classification which is downloaded from www.statistics.gov.m www.statistics.gov.myy The total output tax of each MSIC code will appear ap pear in Form GST-03 (item 19). Should the MSIC Code is not defined, the output tax amount will be shown in the box bo x of Other .

Assign MSIC Code to G/L accounts accounts that affect affect the value of Output Tax. Example Example of accounts that need to assign MSIC Code are: Sales, Cash Sale, Return Inwards, Discount Allowed, Rental Received….. Should there are more than one MSIC code, you need to have multiple accounts for each type of Sales, Case Sales, other incomes… and assign each of them with related MSIC code respectively.

5.0 Update Chart of Account 5.3 Assign default Tax Code (Whichever applicable): A/C Type

A/C No

A/C Description

Input Tax Code

Output Tax Code

F. Assets

200-2000

Furniture & Fitting

TX-S

F. Assets

GST-2010

Passenger Car

BL

Sales

500-0000

Sales

SR-S

Sales

500-0000

Cash Sales

SR-S

Expenses

901-0000

Advertisement

TX-S

Expenses

907-0000

Water & Electricity

TX-S

Expenses

GST-9040

Gift

TX-S

Expenses

GST-9060

Maintenance of Passenger car

BL

Expenses

Medical Fee (GST not claimable)

BL

Expenses

Entertainment (GST not claimable)

BL

6.0 Transaction - Purchase 6.1 Purchase from GST Registered Supplier The following Full Tax Invoice was received from 400-S001 Supplier Standard

Effects on Ledger (double entry)

6.0 Transaction - Purchase 6.2 Cash Purchase from GST Registered Supplier The following Simplified Tax Invoice was received from 400-S001 Supplier Standard

Effects on Ledger (double entry):

6.0 Transaction - Purchase 6.3 Purchase from Non GST Registered Supplier The following Invoice was received from 400-S002 Supplier Non GST.


6.0 Transaction - Purchase 6.4 Use of ‘GST Adjustment’ column - Introduce the use of additional column ‘GST Adjustment’.

Drag out the column of GST Adjustment from Column Chooser. The adjustment value can be +ve or –ve with maximum 2 decimal places.

6.0 Transaction - Purchase 6.4 Use of ‘GST Adjustment’ column - Introduce the use of additional column ‘GST Adjustment’.

Drag out the column of GST Adjustment from Column Chooser. The adjustment value can be +ve or –ve with maximum 2 decimal places.

6.0 Transaction - Purchase 6.5 Purchase Return (Transferred from Invoice) The following Credit Note was received from 400-S001 Supplier Standard


6.0 Transaction - Purchase 6.6 AP Invoice Entry The following Full Tax Invoice was received from 400-S001 Supplier Standard


6.0 Transaction - Purchase 6.7 AP Payment 10/mm/yyyy make a cash payment RM 1256.00 to 400-S001 Supplier Standard, knock off invoice no: 0011.


7.0 Transaction - Sales 7.1 Local Supply – Issue Full Tax Invoice to 300-S001 Standard Customer Mixture of standard rated item and zero-rated item.


7.0 Transaction - Sales 7.2 Cash Sale – Simplified Tax Invoice Issue tax invoice with tax inclusive.

7.0 Transaction - Sales 7.2 Cash Sale – Simplified Tax Invoice Issue tax invoice with tax inclusive.

7.0 Transaction - Sales 7.3 Full Tax Invoice – Export Issue invoice to an overseas customer whose default tax code is ZRE.

Effects on Ledger (double

7.0 Transaction - Sales 7.4 Full Tax Invoice – Relief Supply Issue a tax invoice to a customer whose default tax code is RS.


7.0 Transaction - Sales 7.5 Sales Credit Note – transferred from Sales Invoice Create a new credit note to record a return of spoilt item from Standard Customer.


7.0 Transaction - Sales 7.6 AR Invoice Entry Record the invoice entry without generating sales invoice.


7.0 Transaction - Sales 7.7 AR Payment


8.0 Transaction – G/L 8.1 Cash Payment – with GST Purchases filing system from GST-registered stationery shop.


8.0 Transaction – G/L 8.2 Cash Payment – without GST Pay office rental, the property owner is not GST-registered.


8.0 Transaction – G/L 8.3 Cash Payment – Blocked input tax Maintenance of passenger car… RM 240 + RM 14.40 GST, the input tax is blocked.


8.0 Transaction – G/L 8.4 Journal Entry – Cheque book charges Record the charges of cheque book by the bank… RM20 + RM 1.2 GST.


Filing of GST Returns Filing of Returns 

GST returns and payments to be submitted not later than the last day of the month following the end of the taxable period

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Electronic filing is encouraged

GST Summary Sheet – Input Tax

GST Summary Sheet – Output Tax

GST Summary Sheet – Sheet – Additional Additional Information

GST Summary Sheet – Sheet – Support Support Listing

GST Summary Sheet – Sheet – Bad Bad Debt Relief

GST Audit File (GAF) C|ABC SDN BHD|654321-V|IDGST BHD|654321-V|IDGST:10001/2015|1/12/201 :10001/2015|1/12/2015|31/12/2015|18/2 5|31/12/2015|18/2/2014|XYB /2014|XYB Accountsoft v1.0|GAFv1.0.0| P|MEI MEI SDN BHD|123456-G|19/12/20 BHD|123456-G|19/12/2015|STV/012324/8|| 15|STV/012324/8||1|Purchase 1|Purchase of shark fins|300.00|18.00|TX|XXX|0.00|0.00| fins|300.00|18.00|TX|XXX|0.00|0.00| P|THAI FISH CRACKERS||17/12/2015|SH799 CRACKERS||17/12/2015|SH7997561|B111246 7561|B11124699|1|Purchase 99|1|Purchase of fish crackers from Thai|1700.00|102.00|IM Thai|1700.00|102.00|IM|USD|485.71|29.1 |USD|485.71|29.14| 4| P|RUSSIAN TROUT||18/12/2015|JS6657139|J110013483|1|Purchase TROUT||18/12/2015|JS6657139|J110013483|1|Purchase of trout from Russia|1900|0.00|ZP|USD|542.85|0.00| P|Klinik Nik|H654211-W|26/12/2 Nik|H654211-W|26/12/2015|SJ/12/5673||1|M 015|SJ/12/5673||1|Medical edical claims - Mohd. Ali|60.00|3.60|BL|XXX|0.00|0.00| Ali|60.00|3.60|BL|XXX|0.00|0.00| S|PQR SDN BHD|867890-B|21/12/201 BHD|867890-B|21/12/2015|2353|1|Rental 5|2353|1|Rental of residential House|1000.00|0.00| House|1000.00|0.00|ES||XXX|0.00|0.00| ES||XXX|0.00|0.00| S|PQR S DN BHD|867890-B|21/12/201 BHD|867890-B|21/12/2015|2353|2|Rental 5|2353|2|Rental of Office|2000.00|120.00|SR||XXX|0.00|0. Office|2000.00|120.00|SR||XXX|0.00|0.00| 00| S|KOREA SEAFOOD||20/12/2015|2352|1 SEAFOOD||20/12/2015|2352|1|fish |fish cracker|2000.00|0.00|ZRE|KOREA|USD|571. cracker|2000.00|0.00|ZRE|KOREA|USD|571.43|0.00| 43|0.00| S|KOREA SEAFOOD||20/12/2015|2352|2 SEAFOOD||20/12/2015|2352|2|Trout|2500.00| |Trout|2500.00|0.00|ZRE|KOREA|US 0.00|ZRE|KOREA|USD|714.28|0.00| D|714.28|0.00| S|KOREA SEAFOOD||20/12/2015|2352|3 SEAFOOD||20/12/2015|2352|3|Sharkfins|500.00|0.0 |Sharkfins|500.00|0.00|ZRE|KOREA|USD|14 0|ZRE|KOREA|USD|142.86|0.00| 2.86|0.00| L|1/12/2015|10000|BANK|OPENING L|1/12/2015|10000|BANK |OPENING BALANCE|||||0.00|0.00 BALANCE|||||0.00|0.00|10000.00| |10000.00| L|18/12/2015|10000|BANK|Payment L|18/12/2015|10000|BA NK|Payment for fish crackers|THAI FISH CRACKERS||TTref78431 CRACKERS||TTref784316|AP|0.00|1802 6|AP|0.00|1802.00|8198.00| .00|8198.00| L|19/12/2015|10000|BANK|Payment L|19/12/2015|10000|BA NK|Payment for t rout|RUSSIAN TROUT|9454|TTRef TROUT|9454|TTRef 643271|AP|0.00|1900.00|6298.00 643271|AP|0.00|1900.00|6298.00| | L|26/12/2015|10000|BANK|Staff L|26/12/2015|10000|BA NK|Staff medical claims|KLINIK NIK|9455|CHQ54680|A NIK|9455|CHQ54680|AP|0.00|63.60|62 P|0.00|63.60|6234.40| 34.40| L|28/12/2015|10000|BANK|Payment L|28/12/2015|10000|BA NK|Payment for shark fins|MEI MEI SDN BHD|9457|CHQ54678|AP| BHD|9457|CHQ54678|AP|0.00|318.00|5 0.00|318.00|5916.40| 916.40| L|30/12/2015|10000|BANK|Receipt L|30/12/2015|10000|BA NK|Receipt for sale of seafood|KOREA SEAFOOD|9456|TTRef 134679|AR|5000.00|0.00|10916 134679|AR|5000.00|0.00|10916.40| .40| L|30/12/2015|10000|BANK|Receipt L|30/12/2015|10000|BA NK|Receipt for residential House & Office rental|PQR SDN BHD|9310|CHQ123456|AR|3120.00|0.00|14036.4 BHD|9310|CHQ123456|AR|3120.00|0.00|14036.40| 0| L|1/12/2015|11200|TRADE L|1/12/2015|11200|TRA DE DEBTORS|OPENING BALANCE||9311|||0.00|0.00|0.0 BALANCE||9311|||0.00|0.00|0.00| 0| L|20/12/2015|11200|TRADE L|20/12/2015|11200|TR ADE DEBTORS|Sale of Seafood|KOREA SEAFOOD||INV/ABCPL/2352|A SEAFOOD||INV/ABCPL/2352|AR|5000.00|0.00 R|5000.00|0.00|5000.00| |5000.00| L|30/12/2015|11200|TRADE L|30/12/2015|11200|TR ADE DEBTORS|Receipt for sale of seafood|KOREA SEAFOOD|2352|TTRef 134679|AR|0.00|5000|0.00| 134679|AR|0.00|5000|0.00| L|1/12/2015|11201|OTHERDEBTORS|OPENING BALANCE||9310|||0.00|0.00|0.0 BALANCE||9310|||0.00|0.00|0.00| 0| L|21/12/2015|11201|OTHER L|21/12/2015|11201|OTHE R DEBTORS|Rental of residential House & Office|PQR SDN BHD||INV/ABCPL/2353|AR|3120.00|0.00|3120.00| BHD||INV/ABCPL/2353|AR|3120.00|0.00|3120.00| L|30/12/2015|11201|OTHER L|30/12/2015|11201|OTHE R DEBTORS|Receipt for residential House & Office rental|PQR SDN BHD|2353|CHQ123456 BHD|2353|CHQ123456|AR|0.00|3120 |AR|0.00|3120.00|0.00| .00|0.00| L|1/12/2015|21104|GST - OUTPUT TAX|OPENING BALANCE||9311|||0.00|0.00|0.0 BALANCE||9311|||0.00|0.00|0.00| 0| L|21/12/2015|21104|GST - OUTPUT TAX|Rental of Office|PQR S DN BHD||INV/ABCPL/2353|AR|0.00|120.00|-120.00| BHD||INV/ABCPL/2353|AR|0.00|120.00|-120.00| L|1/12/2015|21190|GST - INPUT TAX|OPENING BALANCE||2353|||0.00|0.00|0.00| BALANCE||2353|||0.00|0.00|0.00| L|17/12/2015|21190|GST - INPUT TAX|Purchase of fish crackers from Thai|THAI FISH CRACKERS||SH7997561|AP|102.00|0.00|102.00| CRACKERS||SH7997561|AP|102.00|0.00|102.00| L|19/12/2015|21190|GST - INPUT TAX|Purchase of shark fins|MEI MEI SDN BHD|77661|STV/012324/8|AP|18|0.00|120.00| BHD|77661|STV/012324/8|AP|18|0.00|120.00| L|1/12/2015|21191|GST - DISALLOWED INPUT TAX|OPENIN G BALANCE||77663|||0.00|0.00|0.00| BALANCE||77663|||0.00|0.00|0.00| L|26/12/2015|21191|GST - DISALLOWED INPUT TAX|Medical claims - Mohd. Ali|KLINIK NIK||SJ/12/5673|AP|3.60|0.00|3.60| NIK||SJ/12/5673|AP|3.60|0.00|3.60| L|1/12/2015|33556|TRADE L|1/12/2015|33556|TRA DE CREDITORS|OPENING BALANCE|||||0.00|0.00|0.00| BALANCE|||||0.00|0.00|0.00| L|17/12/2015|33556|TRADE L|17/12/2015|33556|TR ADE CREDITORS|Purchase of fish crackers from Thai|THAI FISH CRACKERS||SH7997561|AP|0.00|1802.00|-1802. CRACKERS||SH7997561|AP|0.00|1802.00|-1802.00| 00| L|18/12/2015|33556|TRADE L|18/12/2015|33556|TR ADE CREDITORS|Payment for fish crackers|THAI FISH CRACKERS|77661|TTRef 784316|AP|1802.00|0.00|0.00| 784316|AP|1802.00|0.00|0.00| L|18/12/2015|33556|TRADE L|18/12/2015|33556|TR ADE CREDITORS|Purchase of trout from Russia|RUSSIAN TROUT|9454|JS6657139| TROUT|9454|JS6657139|AP|0.00|1900. AP|0.00|1900.00|-1900.00| 00|-1900.00| L|19/12/2015|33556|TRADE L|19/12/2015|33556|TR ADE CREDITORS|Payment for trout|RUSSIAN TROUT|77662|TTRef 643271|AP|1900|0.00|0.00| L|19/12/2015|33556|TRADE L|19/12/2015|33556|TR ADE CREDITORS|Purchase of shark fins|MEI MEI SDN BHD|9455|STV/012324/8| BHD|9455|STV/012324/8|AP|0.00|318.0 AP|0.00|318.00|-318.00| 0|-318.00| L|28/12/2015|33556|TRADE L|28/12/2015|33556|TR ADE CREDITORS|Payment for shark fins|MEI MEI SDN BHD|77663|CHQ54678|A BHD|77663|CHQ54678|AP|318.00|0.00| P|318.00|0.00|0.00| 0.00| L|1/12/2015|53001|REVENUE L|1/12/2015|53001|REVE NUE - TRADE|OPENING BALANCE||9456|||0.00|0.00|0.00| L|20/12/2015|53001|REVENUE L|20/12/2015|53001|REV ENUE - TRADE|Sale of Seafood|KOREA SEAFOOD||INV/ABCPL/2352|AR|0.00|2000.00|-2000 SEAFOOD||INV/ABCPL/2352|AR|0.00|2000.00|-2000.00| .00| L|20/12/2015|53001|REVENUE L|20/12/2015|53001|REV ENUE - TRADE|Sale of Seafood|KOREA SEAFOOD|2352|INV/ABCPL/2352|AR|0.00|2500.00|-450 SEAFOOD|2352|INV/ABCPL/2352|AR|0.00|2500.00|-4500.00| 0.00| L|20/12/2015|53001|REVENUE L|20/12/2015|53001|REV ENUE - TRADE|Sale of Seafood|KOREA SEAFOOD|2352|INV/ABCPL/2352|AR|0.00|500.00|-5 SEAFOOD|2352|INV/ABCPL/2352|AR|0.00|500.00|-5000.00| 000.00| L|1/12/2015|53010|REVENUE L|1/12/2015|53010|REVE NUE - RENTAL|OPENING BALANCE||2352|||0.00|0.00|0.00| L|21/12/2015|53010|REVENUE L|21/12/2015|53010|REV ENUE - RENTAL|Rental of residential House|PQR SDN BHD||INV/ABCPL/2353|AR|0.00|1000.00|-1000.00| BHD||INV/ABCPL/2353|AR|0.00|1000.00|-1000.00| BHD|77662|STV/012324/8|AP|300.00|0.00 BHD|77662|STV/012324/8 |AP|300.00|0.00|3900.00| |3900.00| F|4|3960.00|123.60|5|8000.00|120 F|4|3960.00|123.60|5|8000.00|120.00|40|24343 .00|40|24343.60|24343.60| .60|24343.60|10000.00| 10000.00|

GAF Format

9.0 GST Processor GST Processor is used to gather all info related to GST and produce reports such as GST-03, GST Return File, GAF and other summary reports. 9.1 Run GST Processor using wizard Go to GST > GST Processor

1. Click New

9.0 GST Processor 9.1 Run GST Processor using wizard Go to GST > GST Processor

2. Click Next


3. Click Next


4. Click Next


5. Click Next


6. Click Next


7. Click Next


8. Click Next


9.0 GST Processor 9.2 GST-03 You may view the GST-03 (GST Return Form), save a softcopy as a record.

GST-03

9.0 GST Processor 9.2 GST-03 You may view the GST-03 (GST Return Form), save a softcopy as a record.

Click on this button to export to other format such as PDF, XLS, XLSX…

9.0 GST Processor 9.3 Generate GST Return File After the content of the taxable period is finalized, for online submission of GST return, you need to generate GST Return File and save a copy which will be attached during online submission at Taxpayer Access Point (TAP).

1. Click on Generate GST Return File

2. Define a destination to save the file to be generated… then Save.

9.0 GST Processor 9.3 Generate GST Return File After the content of the taxable period is finalized, for online submission of GST return, you need to generate GST Return File and save a copy which will be attached during online submission at Taxpayer Access Point (TAP).

3. Click on Yes if you want to view the file

4. This is the content and format of GST Return File

9.0 GST Processor 9.4 Generate GAF GST Audit File (GAF) must be made available upon request from RMCD. You may generate GAF and keep a softcopy file after you have finalized the content of the taxable period.

1. Click on Generate GAF

2. Define a destination to save the file to be generated… then Save.

9.0 GST Processor 9.4 Generate GAF GST Audit File (GAF) must be made available upon request from RMCD. You may generate GAF and keep a softcopy file after you have finalized the content of the taxable period.

3. Click on Yes if you want to view the file

4. This is the content and format of GAF

9.0 GST Processor 9.5 Other Report Other tax summary reports provide additional information of related transactions.

1. Preview

2. Tax Summary All in one

9.0 GST Processor 9.5 Other Report Other tax summary reports provide additional information of related transactions.

9.0 GST Processor 9.6 Saving GST Processor Usually the processor of a particular taxable period will be saved before finalization. A saved processor can be deleted if there were errors or omissions in its content. After the corrections the processor can be generated again. When the contents are checked and finalized by the user, GST Return file will be generated and submitted online thru TAP site. GAF file will be generated as well for filing purpose.

Click on Save to save the processor without submitting.

9.0 GST Processor 9.6 Saving GST Processor Usually the processor of a particular taxable period will be saved before finalization. A saved processor can be deleted if there were errors or omissions in its content. After the corrections the processor can be generated again. When the contents are checked and finalized by the user, GST Return file will be generated and submitted online thru TAP site. GAF file will be generated as well for filing purpose.

You may View the processor again, Submit the p rocessor, or Delete the processor.

The status of the processor is ‘Not Submitted’

9.0 GST Processor 9.7 Submit GST Processor After submitted GST Return (wither using GST-03 or GST Return File), you have to ‘Submit’ the processor.

Upon submitting the processor, a journal entry will be generated to reconcile the balances of input tax account and output tax account, and transfer the difference to GST Control Account. Once the status of processor for a particular taxable period is ‘Submitted’, the said period will be locked for unauthorized modification. And you may proceed to run processor for the subsequent taxable period.

9.0 GST Processor 9.7 Submit GST Processor

3. Click OK

4. The status changed to ‘Submitted’

9.0 GST Processor 9.8 Payment of GST due / Refund of Input Tax Credit The following journal entry was generated from the submission of processor in 9.7.

9.0 GST Processor 9.8 Payment of GST due / Refund of Input Tax Credit The journal entry has credited the tax amount payable (RM211.73) to GST Control Account. Create a Cash Payment to record the payment of tax to RMCD.

10.0 Bad Debt Relief 10.1 Claiming AR Bad Debt Relief Go to GST > Manage AR Bad Debt




10.0 Bad Debt Relief 10.1 Recovery of Bad Debt Relief If the debtor subsequently pay the outstanding amount, just create a AR Payment and knock off accordingly. A journal entry will be generated to record the recovery of Bad Debt Relief. Create AR Payment…

10.0 Bad Debt Relief 10.1 Recovery of Bad Debt Relief



11.0 Gift Rule 11.1 Gift more than RM 500 Example:

05 Jan 2015 - Purchased a mobile phone from AAA Supplies RM4000 + RM240 GST as a gift for Standard Customer. Record the purchase using Cash Payment.

11.0 Gift Rule 11.1 Gift more than RM 500 Example:

05 Jan 2015 - Purchased a mobile phone from AAA Supplies RM4000 + RM240 GST as a gift for Standard Customer. Record the purchase using Cash Payment.

11.0 Gift Rule 11.1 Gift more than RM 500 Record the gift using GST > Gift Rule



11.0 Gift Rule 11.2 Gift more than RM 500 accumulative Example:

06 Jan 2015 – Give a hamper worth RM 300 to Mr. Peter 09 Jan 2015 – Give another hamper worth RM 400 to Mr. Peter Record the gift using GST > Gift Rule

11.0 Gift Rule 11.2 Gift more than RM 500 accumulative





12.0 Imported Goods •

Create Purchase Invoice for goods imported from overseas. Create Cash Payment to record customs duty and GST paid to RMCD when goods are cleared/retrieved from customs.

Example: •

10 Jan 2015: Invoice (No. 1234) received from 400-S003 Supplier Overseas Goods, to purchase (import) 10 units of item 00001 at RM600 each.

•

15 Jan 2015: Charges by RMCD: Customs duty (10% x 6000) = RM 600

•

GST (6% x 6000) = RM 360 and (6% x 600) = RM 36

12.1 Purchase Invoice – use of Tax Code: IM-GDS

12.2 Payment Voucher – use of ‘Imported Goods Document’



13.0 Imported Services Upon payment of the supply, the recipient of imported services needs to account for GST on reverse charge mechanism, just as if he is making the supply to himself. If input tax credit is allowed, he may claim input tax at the same time. Example: •

•

11 Jan 2015: Invoice (No. 2222) received from 400-S004 Supplier Overseas Services, to purchase (import) 1 unit of item 00003 at RM2000. 12 Jan 2015: Full payment made to 400-S004 via bank transfer.

13.1 Purchase Invoice – use of Tax Code: IM-SVC

13.2 AP Payment – knock off PI and auto-generate Journal Entry



14.0 GST on D/O (21-Day Rule) •

During GST Processor, the system will detect all Delivery Orders that are still outstanding at the end of the taxable period, and:

•

have not been transferred to Invoice, or

•

have been transferred to Invoice but not within 21 days.

•

You will be required to generate journal entry on the DO date to account for output tax.

•

•

•

•

In the subsequent taxable period or later taxable period, on the date of invoice where such DO are transferred to, a reversed journal entry will be generated to offset the total output tax posted from the invoice. Example: 20 Jan 2015: Create a DO to 300-S001, 5 units of item 00001 @ RM 1000, plus 6% GST. 21 Jan 2015: Create a DO to 300-S001, 2 units of item 00001 @ RM 1000, plus 6% GST.

•

05 Feb 2015: Full document transfer from DO (20 Jan) to Invoice. (within 21 days)

•

25 Feb 2015: Full document transfer from DO (21 Jan) to Invoice. (more than 21 days)

14.1 Create DO and full document transfer to Invoice.




14.2 Run GST Processor for taxable period of January 2014 (run at the end of February 2015)







14.3 Run GST Processor in the subsequent taxable period GO to GST > GST Processor, New, Next, Next, Next, Next




15.0 GST on Payment (Deposit) •

•

During GST Processor, the system will detect any unapplied AR Payment or AR Deposit at the end of the taxable period, and allows you to generate journal entry on the date of AR Payment or AR Deposit to account for output tax of such payment in advance. When the said AR Payment or AR Deposit is knocked off against AR Invoice in the subsequent taxable period or later taxable period, a reversed journal entry will be generated to offset the total output tax posted from the invoice.

Example: •

22 Feb 2015: Create a AR Payment from 300-S001, Cash RM 1000, do not knock off any invoice.

•

03 Mar 2015: Create a new AR Invoice Entry for 300-S001, total RM 5000 + GST.

•

Knock off the AR Payment against this invoice.

15.1 Create AR Payment – unapplied.

15.2 GST Processor for current period GO to GST > GST Processor, New, Next, Next, Next, Next, Next



15.3 Create new AR Invoice Entry and Knock off (in the taxable period of March 2015)

15.3 Create new AR Invoice Entry and Knock off (in the taxable period of March 2015)

15.4 GST Processor in the taxable period of March 2015 GO to GST > GST Processor, New, Next, Next, Next, Next, Next.



250 GST Accounting Training

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