1. Explanation
During Goods Receive Note (GRN), select Tax Code = IM, but make sure the Tax Rate = 0
- Note 1: It is important to make sure the Tax Rate is set at 0, because the Supplier Invoice amount from overseas supplier is EXCLUSIVE of GST amount.
- Note 2: Tax Code configuration will have 6% for IM Tax Code. So during GRN, if you select the IM code set from drop-down list the tax rate will automatically be 6%. Thus, it is advisable to edit the Supplier first, set IM as the supplier's Default Tax Code, but edit the Tax Rate to 0%. This way, whenever the supplier is selected at the GRN, the items will automatically be charged with Tax Code IM but with Tax Rate 0%
GST on imported goods = (Invoice amount + Import Duty + Excise Duty) * GST rate
2. Custom Guide
Ref : Page 18 [[http://gst.customs.gov.my/en/rg/SiteAssets/accounting_software/GUIDE_ON_ACCOUNTING_SOFTWARE_02MAC2017.pdf]]
100. When a person receives a supply of imported services for the purpose of business, he is treated as if he is making and receiving the supply. Since he is treated as making a supply, he is required to account GST on the supply of imported services as his output tax.
101. If the imported services are used for making taxable supplies, he is entitled to claim the GST incurred as his input tax. If the supply is used for making exempt supplies, he is not entitled to claim the GST as his input tax. If the imported services are used for making both taxable and exempt supplies, then he has to apportion the GST incurred and claim the proportion of GST on imported services used for making taxable supplies.
102. If the recipient is a taxable person, he has to declare both input tax and output tax in his GST return and pay the tax not later than the last day of the following month after the end of his taxable period where the payment for the supply of imported services is made to the supplier.
103. If the recipient is not a taxable person, he is still required to account the GST as output tax and declare the tax in a prescribed form (Form GST-04). The tax has to be paid not later than the last day of the subsequent month from the month in which the payment of supply is made.
Latest GST guide:
3. Guide
Step 1 : Supplier > Maintenance > Create / Edit Supplier
Set the supplier's Tax Code as IM, but change the Tax Rate to 0
Step 2 : Create the GRN for the Supplier
As shown below, the supplier's Tax Code and Tax Rate will used in the GRN
Step 3 : Filing of Imported Goods are done at : Extended Modules > Malaysia GST > Tax Filing > Tax on Imported Goods
Detail explanation on each of the fields above are as below :
- Company : the company that the Imported Goods is for, or rather the GRN's company
- Branch : the branch that the Imported Goods is for, or rather the GRN's branch
- Filing Cycle : decides when the GRN / SINV should be filed into
- Date : the Transaction Date
- Adjustment GL Code : This GL Code needs to be paid off during Payment Voucher, when tax is being paid to Royal Custom
- Tax Code : choose the Tax Code for Imported Goods, which is IM. Do make sure that the Tax Rate is 6%
- GRN PKID : the GRN which Input Tax will be filed here
- Save Details : once you have filled up the fields above, click Save Details to proceed with the next part
- Input Tax Amount : total tax according to K1 / K9 forms for items which have IM tax code. System will automatically calculate tax amount for item which do not have IM tax code
- Confirm and Save : once done filling up all details, including Input Tax Amount, click Confirm and Save to file the GRN / SINV
Once the GRN is filed, a new Journal Transaction will be created as below :
