GST updates & feedback (0%, 2018-06-01) with Wavelet EMP

This GST guide is to reference with official Royal Customs recent update as at 24th May 2018.
Kindly refer to the following link: (English Version) http://gst.customs.gov.my/en/hl/SiteAssets/pdf/FAQ%20v3%20EN.pdf
: (Malay Version) http://gst.customs.gov.my/en/hl/SiteAssets/pdf/FAQ%20v3%20BM.pdf

TOPICS:

1. What's the tax code used for GST 0% for standard rated purchase and sales?

The tax code used for Purchase will be TX or any code that the company uses for purchases at 0%.
The tax code used for Sales (0%) will be SR any code that the company uses for standard rated local supplies.

2. What's the action taken by Wavelet?

Wavelet will be changing the tax rate from 6% to 0%
Related tax code:
Purchase : TX, TX-NC, BL, TX-CG, IM-CG, AJP
Sales : SR, DS, DS-ISRV, AJS
Flat rate: TX-FRS - remain 2%
Wavelet will update server on 2018-05-31 night

3. Do I need to change the Tax Configuration?

3.1: EMP Tax Configuration

3.2: Item Maintenance (Selling Price / Purchase Price)

Selling Prices

User need to inform Wavelet if need to use Selling Prices as Inclusive or Exclusive. Wavelet will be updating the system for the item price during the server update on 2018-05-31.

After server update

Purchase Prices

If the "Item price include tax rate" box is untick, no action required , price show as Excluded gst

3.2 Supplier Maintenance

Tax Code and Tax Rate at Supplier Maintenance need to be checked.

3.3 Customer Maintenance

Tax Code and Tax Rate at Customer Maintenance need to be checked.

4. What's the action required user side?

User need to ensure the Printable/ Hard copy Tax Invoice passed to customer need to have 0% tax rate. Need to double check before pass to customer.

Before server update on 2018-05-31, user need to export the Item Listing file into Excel and save it. After server update on 2018-05-31, user need to export the Item Listing and compare the Price Tax Option/ Price Tax Option Input and the Price if it is correct. Refer to the link Item Listing to export to excel.

5. How to record transactions before 1 June 2018 with GST 6%?

Performing back-dated transaction for May 2018.

Scenario: In June 2018, user wants to back-date transactions to May 2018. However, starting 1st June 2018 onwards, EMP captures SR tax code as 0% and TX tax code as 0%. May 2018 has 6% GST. Especially for the Supplier Invoice or Expenses transactions (transaction for Input tax claim)
Answer: User need to manually change the Tax Rate from 0% to 6% at the Item Widget before Confirm and Save the transaction. To allow user to change TAX CODE in the transaction, need to enable the permission as follows:

Go to: Control Panel > System Admin > Manage Users > Configure Role Permission > Extended Module > General Malaysia GST Permission > Permission to add/edit Item Widget Tax

6. How does the system handle deposit transactions?

Full Payment (Full Deposit)

Scenario: In May 2018, customer paid full deposit payment (RCT). In June 2018, the Invoice (INV) is issued or Sales Order (SO) converted to Invoice. RCT in May 2018 has GST output suspended. INV in June 2018 has 0% tax rate.
Answer:

Partial Deposit

Scenario: In May 2018, customer made partial deposit payment (RCT). In June 2018, the Invoice (INV) is issued or Sales Order (SO) converted to Invoice. Partial RCT in May 2018 has 6% rate included. Another partial RCT in June, will there be 6% tax rate?
Answer:

7. When Sales Order created before 1 June but converted after 1 June, does system auto change the tax rate to 0%?

NO. user need to change the tax rate from 6% to 0% manually

8. Do I need to submit GST-03 return?

Yes, GST-03 still needed to be submitted.
Note: If there is negative amount at GST-03 (5b) and (6b), user need to do adjustments.

9. How should I declare GST-03 return with quarterly taxable period? (1 April 2018 to 30 June 2018)

10. How to treat Bad Debt Relief before 1 June and Bad Debt Recovered after 1 June

Scenario: Bad Debt Relief was done in May 2018, Bad Debt Recovered was done in June 2018.
Answer: Bad Debt Recovered need to have 6% tax rate if it is done in June 2018, if it is related to Bad Debt Relief done in May 2018 or before.

11. Sales Return & Purchase Return

Scenario: Invoice (INV) was issued in May 2018 with 6% tax rate, Sales Return (SR) was created in June 2018. How would the SR be treated for GST?
Answer: SR in June 2018 need to have 6% tax rate based on the INV issued in May 2018. Applies the same for Purchase Return (PR) in June 2018 which is based on GRN from May 2018.

Scenario 2: If too many SR and PR being created in June 2018 with 6% gst, GST-03 (5b) and (6b) might result in negative amount. TAP file does not allow negative amount to be submitted.
Answer 2: User need to do GST adjustment to remove the negative amount from GST-03 (5b) and (6b). The following are the suggested steps to perform GST adjustment for negative amount at (5b) and (6b):

Example: GST-03 (negative amount at 5a and 5b due to SR with 6% gst in June 2018)

5a. (RM 1272)
5b. (RM 72)

Suggested solution: To adjust out the 5b amount to 6b, to be able to claim back the amount.

Go to: Extended Module > Malaysia GST > Tax Filing > GST Adjustment

12. Consignment

Scenario 1: Customer Consignment Create (CCO) was issued in May 2018, Customer Consignment Return (CCI) was done in May 2018. Consignment Billing (INV) was issued in June 2018.
Answer 1: User need to manually change the tax rate to 0% following the date of issuing the Invoice (Consignment Billing)

Scenario 2: Customer Consignment Create (CCO) was issued in May 2018, Customer Consignment Return (CCI) was done in June 2018. Consignment Billing (INV) was issued in June 2018.
Answer 2:

13. Invoice

Scenario: Invoice is issued in May 2018 with 6% tax rate and RCT (payment) made in June 2018 with 0% tax rate.
Answer:

14. What will the tax rate be for BOM items?

The tax rate for BOM items will not be auto-changed after the server update on 2018-05-31. User need to manually change the tax rate from 6% to 0%.

15. Gift Rule