Tax Filing for Blocked GST Input Tax

1. Explanation
   

   There are some Goods & Services Tax (GST) that cannot be claimed while doing purchases or expenses, which is called Blocked Input Tax Credit.

   Any input tax that incurred need to be exclude from any credit under following situation:

   • Supply or importation of passenger car (including lease of passenger car)
   • Club subscription fee (recreational or sporting purposes)
   • Medical and personal accident insurance premium
   • Medical expenses (for example, wheel chair)
   • Family benefits for employees
   • Entertainment expenses except for employees and existing customers
2. Guide

Step 1: Control Panel → System Admin → EMP Configuration → Tax

Step 2: Fill up the Default GL Code for Blocked GST Input Tax → Refer to GST Setup User Guide 2015-04-01

Step 3: Create Direct Receiving Stock ( GRN ) 

Step 4: Please proceed with the Input Tax Filling Step (Input Tax Filing)

Step 5: 

When filing using tax code "BL, the default Journal Transaction created will follow the new configuration. 

Example :