Introduction to GST – Part 5

  • Accounting for GST

Taxable periods are regular interval periods for which a taxable person or business accounts  the amount of input tax credits payable to the taxable person or business or the amount of GST payable by the taxable person or business. You offset your GST and your input tax credits for the taxable period to give you a net amount for each taxable period.

The taxable period will be determined at the time when GST registration is approved.

  • Quarterly basis – for taxable person or business with annual turnover not exceeding RM5 million.
  • Monthly basis – for taxable person or business with annual turnover exceeding RM5 million.
  • Six (6) months basis – only on special case.

A taxable person or business may apply to be placed at any other category other than his pre-determined taxable period.

Tax Invoice

The following are some of the details required in a tax invoice:

  • a tax invoice must be issued by any GST registered person who makes taxable supplies
  • the total tax chargeable shall be stated separately from the amount of the goods or services charged in the tax invoice
  • all particulars related to the transaction must be shown in the tax invoice
  • the tax invoice need to be  issued within 21 days after the time of supply
  • self-billed invoice is allowed to be issued by the recipient of the goods if: 
       – the value at the time of supply is not known by the supplier 
       -  the recipient and the supplier are both GST registered 
       – the supplier agrees that no tax invoice will be issued by him

    Credit Notes

    Credit notes must be issued by a seller to his customers if the goods are being returned for some reasons for the purpose of deducting the selling price of the returned goods including the out tax charged by the seller.

    Debit Notes

    • the buyer issues a debit note when he gets short delivery or goods damaged in transit and will be returned to the supplier
    • the debit note shall show the amount of goods not delivered or damaged and returned for the purpose of deducting the purchase price including the GST incurred

    Liability to keep records

    All business and accounting records relating to GST are to be kept in Bahasa Malaysia or English for a period of 7 years.

    Filing of returns

    GST returns and payments must be submitted not later than the last day of the month following the end of the taxable period. Electronic filing is encouraged by the tax authorities.

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