You are on page 1of 200

Slide 1

What is GST?

How does GST work?

Proposed GST Model

What is GST?

Consumption tax in the form of value


added tax

Also known as Value Added Tax (VAT)

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
Rent

Raw
materials

OUTPUT
Goods

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

Need to pay GST on their


acquisitions
Relief on selected goods

Need to pay GST on their


acquisitions
Relief on selected goods
Slide 14

Special Refund
Entitled to special refund if

claimant is registered (mandatory) person

hold goods on 1 April 2015 for making taxable


supply

goods are subject to sales tax

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

goods used partially or incorporated into other goods e.g.


raw materials, work in progress

goods for hire e.g. cars, generators

goods not for business e.g. personal use

goods not for sale or exchange e.g. containers, pellets,


stationeries, moulds, manufacturing aids

goods entitled to drawback

goods allowed sales tax deduction under credit system

Special Refund
Reduce special refund to 20%

(20% method)

purchase goods from non licensed manufacturers

goods are subject to sales tax

holds invoices which does not show sales tax has


been charged

claimant is a registered (mandatory) person

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

for special refund < RM10,000 require audit certificate


signed by a chartered accountant

for special refund RM10,000 require audit certificate


signed by an approved company auditor

use special form to claim refund (manual or online)

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 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 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


(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

Malaysia GST
Accounting Training

Malaysia GST
Accounting Training
1. Installation

1. Installation
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
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
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
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

Malaysia GST
Accounting Training
2. Activate GST Malaysia

2. Check Use Goods


and Services Tax

1. General >
Goods
and Services Tax
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


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

2. Activate GST Malaysia


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

2. Activate GST Malaysia


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 items 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.

2. Activate GST Malaysia


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
Note: Its 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

How to implement GST setting for existing AutoCount Accounting


users? The use of GST Setting From Other Account Book
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 youd like to include


any customized reports.
3. select contents to be
copied..

4. Click to start copy.

How to implement GST setting for existing AutoCount Accounting


users? The use of GST Setting From Other Account Book
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.

Malaysia GST
Accounting Training
3. Update Company Profile

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.

Malaysia GST
Accounting Training
4. Tax Code Maintenance

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.

GST Tax Code - Purchase


Tax Code

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.

GST Tax Code - Purchase


Tax Code

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 respective 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


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


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


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:
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:
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
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 items.

8. Save

Malaysia GST
Accounting Training
5. Update Chart of Account

5.0 Update Chart of 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 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:


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

5.0 Update Chart of Account


5.2 Assign MSIC Code (Whichever applicable):
A/C 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


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

Assign MSIC Code to G/L accounts that affect the value of Output Tax. 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

Malaysia GST
Accounting Training
6. Transaction - Purchase

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.

Effects on Ledger
(double entry)

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

Effects on
Ledger (double
entry)

6.0 Transaction - Purchase


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

Effects on
Ledger (double
entry)

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.

Effects on Ledger
(double entry)

Malaysia GST
Accounting Training
7. Transaction - Sales

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.

Effects on
Ledger (double
entry)

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
entry)

7.0 Transaction - Sales


7.4 Full Tax Invoice Relief Supply
Issue a tax invoice to a customer whose default tax code is RS.

Effects on
Ledger (double
entry)

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.

Effects on
Ledger (double
entry)

7.0 Transaction - Sales


7.6 AR Invoice Entry
Record the invoice entry without generating sales invoice.

Effects on
Ledger (double
entry)

7.0 Transaction - Sales


7.7 AR Payment

Effects on
Ledger (double
entry)

Malaysia GST
Accounting Training
8. Transaction G/L

8.0 Transaction G/L


8.1 Cash Payment with GST
Purchases filing system from GST-registered stationery shop.

Effects on
Ledger (double
entry)

8.0 Transaction G/L


8.2 Cash Payment without GST
Pay office rental, the property owner is not GST-registered.

Effects on
Ledger (double
entry)

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.

Effects on
Ledger (double
entry)

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.

Effects on
Ledger (double
entry)

Malaysia GST
Accounting Training
9. GST Processor

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

Electronic filing is
encouraged

GST Summary Sheet Input Tax

GST Summary Sheet Output Tax

GST Summary Sheet Additional Information

GST Summary Sheet Support Listing

GST Summary Sheet Bad Debt Relief

GST Audit File (GAF)


C|ABC SDN BHD|654321-V|IDGST:10001/2015|1/12/2015|31/12/2015|18/2/2014|XYB Accountsoft v1.0|GAFv1.0.0|
P|MEI MEI SDN BHD|123456-G|19/12/2015|STV/012324/8||1|Purchase of shark fins|300.00|18.00|TX|XXX|0.00|0.00|
P|THAI FISH CRACKERS||17/12/2015|SH7997561|B11124699|1|Purchase of fish crackers from Thai|1700.00|102.00|IM|USD|485.71|29.14|
P|RUSSIAN 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|26/12/2015|SJ/12/5673||1|Medical claims - Mohd. Ali|60.00|3.60|BL|XXX|0.00|0.00|
S|PQR SDN BHD|867890-B|21/12/2015|2353|1|Rental of residential House|1000.00|0.00|ES||XXX|0.00|0.00|
S|PQR SDN BHD|867890-B|21/12/2015|2353|2|Rental of Office|2000.00|120.00|SR||XXX|0.00|0.00|
S|KOREA SEAFOOD||20/12/2015|2352|1|fish cracker|2000.00|0.00|ZRE|KOREA|USD|571.43|0.00|
S|KOREA SEAFOOD||20/12/2015|2352|2|Trout|2500.00|0.00|ZRE|KOREA|USD|714.28|0.00|
S|KOREA SEAFOOD||20/12/2015|2352|3|Sharkfins|500.00|0.00|ZRE|KOREA|USD|142.86|0.00|
L|1/12/2015|10000|BANK|OPENING BALANCE|||||0.00|0.00|10000.00|
L|18/12/2015|10000|BANK|Payment for fish crackers|THAI FISH CRACKERS||TTref784316|AP|0.00|1802.00|8198.00|
L|19/12/2015|10000|BANK|Payment for trout|RUSSIAN TROUT|9454|TTRef 643271|AP|0.00|1900.00|6298.00|
L|26/12/2015|10000|BANK|Staff medical claims|KLINIK NIK|9455|CHQ54680|AP|0.00|63.60|6234.40|
L|28/12/2015|10000|BANK|Payment for shark fins|MEI MEI SDN BHD|9457|CHQ54678|AP|0.00|318.00|5916.40|
L|30/12/2015|10000|BANK|Receipt for sale of seafood|KOREA SEAFOOD|9456|TTRef 134679|AR|5000.00|0.00|10916.40|
L|30/12/2015|10000|BANK|Receipt for residential House & Office rental|PQR SDN BHD|9310|CHQ123456|AR|3120.00|0.00|14036.40|
L|1/12/2015|11200|TRADE DEBTORS|OPENING BALANCE||9311|||0.00|0.00|0.00|
L|20/12/2015|11200|TRADE DEBTORS|Sale of Seafood|KOREA SEAFOOD||INV/ABCPL/2352|AR|5000.00|0.00|5000.00|
L|30/12/2015|11200|TRADE DEBTORS|Receipt for sale of seafood|KOREA SEAFOOD|2352|TTRef 134679|AR|0.00|5000|0.00|
L|1/12/2015|11201|OTHER DEBTORS|OPENING BALANCE||9310|||0.00|0.00|0.00|
L|21/12/2015|11201|OTHER DEBTORS|Rental of residential House & Office|PQR SDN BHD||INV/ABCPL/2353|AR|3120.00|0.00|3120.00|
L|30/12/2015|11201|OTHER DEBTORS|Receipt for residential House & Office rental|PQR SDN BHD|2353|CHQ123456|AR|0.00|3120.00|0.00|
L|1/12/2015|21104|GST - OUTPUT TAX|OPENING BALANCE||9311|||0.00|0.00|0.00|
L|21/12/2015|21104|GST - OUTPUT TAX|Rental of Office|PQR SDN 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|
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|
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|
L|1/12/2015|21191|GST - DISALLOWED INPUT TAX|OPENING 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|
L|1/12/2015|33556|TRADE CREDITORS|OPENING BALANCE|||||0.00|0.00|0.00|
L|17/12/2015|33556|TRADE CREDITORS|Purchase of fish crackers from Thai|THAI FISH CRACKERS||SH7997561|AP|0.00|1802.00|-1802.00|
L|18/12/2015|33556|TRADE CREDITORS|Payment for fish crackers|THAI FISH CRACKERS|77661|TTRef 784316|AP|1802.00|0.00|0.00|
L|18/12/2015|33556|TRADE CREDITORS|Purchase of trout from Russia|RUSSIAN TROUT|9454|JS6657139|AP|0.00|1900.00|-1900.00|
L|19/12/2015|33556|TRADE CREDITORS|Payment for trout|RUSSIAN TROUT|77662|TTRef 643271|AP|1900|0.00|0.00|
L|19/12/2015|33556|TRADE CREDITORS|Purchase of shark fins|MEI MEI SDN BHD|9455|STV/012324/8|AP|0.00|318.00|-318.00|
L|28/12/2015|33556|TRADE CREDITORS|Payment for shark fins|MEI MEI SDN BHD|77663|CHQ54678|AP|318.00|0.00|0.00|
L|1/12/2015|53001|REVENUE - TRADE|OPENING BALANCE||9456|||0.00|0.00|0.00|
L|20/12/2015|53001|REVENUE - TRADE|Sale of Seafood|KOREA SEAFOOD||INV/ABCPL/2352|AR|0.00|2000.00|-2000.00|
L|20/12/2015|53001|REVENUE - TRADE|Sale of Seafood|KOREA SEAFOOD|2352|INV/ABCPL/2352|AR|0.00|2500.00|-4500.00|
L|20/12/2015|53001|REVENUE - TRADE|Sale of Seafood|KOREA SEAFOOD|2352|INV/ABCPL/2352|AR|0.00|500.00|-5000.00|
L|1/12/2015|53010|REVENUE - RENTAL|OPENING BALANCE||2352|||0.00|0.00|0.00|
L|21/12/2015|53010|REVENUE - RENTAL|Rental of residential House|PQR SDN BHD||INV/ABCPL/2353|AR|0.00|1000.00|-1000.00|
BHD|77662|STV/012324/8|AP|300.00|0.00|3900.00|
F|4|3960.00|123.60|5|8000.00|120.00|40|24343.60|24343.60|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

9.0 GST Processor


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

3. Click Next

9.0 GST Processor


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

4. Click Next

9.0 GST Processor


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

5. Click Next

9.0 GST Processor


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

6. Click Next

9.0 GST Processor


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

7. Click Next

9.0 GST Processor


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

8. Click Next

9.0 GST Processor


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

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 processor,


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.

Malaysia GST
Accounting Training
10. Bad Debt Relief

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

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 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

10.0 Bad Debt Relief


10.1 Recovery of Bad Debt Relief

10.0 Bad Debt Relief


10.1 Recovery of Bad Debt Relief

Malaysia GST
Accounting Training
11. Gift Rule

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


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

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

11.0 Gift Rule


11.2 Gift more than RM 500 accumulative

11.0 Gift Rule


11.2 Gift more than RM 500 accumulative

11.0 Gift Rule


11.2 Gift more than RM 500 accumulative

11.0 Gift Rule


11.2 Gift more than RM 500 accumulative

Malaysia GST
Accounting Training
12. Imported Goods

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

12.2 Payment Voucher use of Imported Goods Document

12.2 Payment Voucher use of Imported Goods Document

Malaysia GST
Accounting Training
13. Imported Services

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

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

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

Malaysia GST
Accounting Training

14. GST on Delivery Order


(21 Days Rule)

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.

14.1 Create DO and full document transfer to Invoice.

14.1 Create DO and full document transfer to Invoice.

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)

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

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

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

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

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

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

14.3 Run GST Processor in the subsequent taxable period


GO to GST > GST Processor, New, Next, Next, Next, Next

14.3 Run GST Processor in the subsequent taxable period


GO to GST > GST Processor, New, Next, Next, Next, Next

14.3 Run GST Processor in the subsequent taxable period


GO to GST > GST Processor, New, Next, Next, Next, Next

Malaysia GST
Accounting Training

15. GST on Payment


(Deposit)

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

15.2 GST Processor for current period


GO to GST > GST Processor, New, Next, Next, Next, Next, Next

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.

15.4 GST Processor in the taxable period of March 2015


GO to GST > GST Processor, New, Next, Next, Next, Next, Next.

15.4 GST Processor in the taxable period of March 2015


GO to GST > GST Processor, New, Next, Next, Next, Next, Next.

You might also like