GST-03 Item 12 (ES + IES) : How to compare the Total Value of Exempt Supplies between GST-03 and Ledger

How to compare the Total Value of Exempt Supplies between GST-03 and Ledger?

Introduction

This guide will help you to check the data entry source posted for Item 12 Total Value of Exempt Supplies in GST-03.

1. GST Tax Code

Tax Code	Tax Description	Tax Rate	Explanation and examples
IES	Incidental Exempt Supplies	0%	Incidental exempt supplies under GST legislations (Note: Replace ES43). Incidental Exempt Financial Services Supplies (IEFS) include:- interest income from deposits placed with a financial institution in Malaysia realized foreign exchange gains or losses
ES	Exempt Supplies under GST	0%	This refers to supplies which are EXEMPTED UNDER GST. These supply includes:- Selling of Residential Properties to consumer Selling of tickets for Public Transportation (Taxis, Stage Buses, Ferries) Financial Institution’s interest charges to customers for loan.

2. GST-03

Item No.	Description	Guidelines
12	Total Value of Exempt Supplies	IES + ES (Taxable Amount) Note: Net Loss in Forex (ES43)= 0.00

Example of Data Entry

1. IES - Interest income from deposits placed with a financial institution in Malaysia

Screenshot below from Journal Entry.

2. IES - Realized foreign exchange gains or losses

a. Realized Gain in Foreign Exchange

Screenshot below from Customer Payment.

b. Realized Loss in Foreign Exchange

Screenshot below from Customer Payment.

3. ES - Financial Institution’s interest charges to customers for loan

Screenshot below from Customer Invoice.

GST-03 Item 12: Total Value of Exempt Supplies

[GST | Print GST-03...]

1. For instances, the GST-03 Item 12 = Rm62.886.40

2. You can check the details by double click on the amount in Item 12.

3. Pop-up the item 12 detail.

4. You can insert additional column, ie. From Doc Type and Trans Type.

a. From Doc Type will help you to identify the documents where it posted;

b. Trans Type will tell you the document posted from special case, eg. Realized Gain in Foreign Exchange.

NOTE:
Trans Type = _X, it means the posting entry related to Realized Gain or Loss in Foreign Exchange.

Cross Check Reports

GST Listing

[GST | Print GST Listing...]

1. Select the date range or GST Process.

2. You can select the tax parameter for ES and IES.

3. Apply the GST Listing.

Tax Code	Local Amount	Explanation
IES	5,000.00	Local amount from Sales/Customer/Journal Entry/Cash Book (OR) documents related to tax code : IES
IES	Gain=7,886.40	Net realized forex gain calculated
ES	50,000.00	Local amount from Sales/Customer/Journal Entry/Cash Book (OR) documents related to tax code : ES
Total	62,886.40	Total value shown in GST-03 Item 12

4. Click on each tax type, you able to view the details. See the example in the screenshot below.

a. IES

b. IES (Net Realized Forex Gain ONLY)

c. ES

GL Ledger

[GL | Print Ledger Report...]

General Posting for IES & ES

1. In the General Ledger report, you have to insert the Tax grid column.

2. Filter the Tax Code (ES and IES).

3. Transactions related to ES. See the screenshot below.

3. Transactions related to IES. See the screenshot below.

Special Posting for Net Realized Gain Forex (IES)

Below question and answer extract from GUIDE ACCOUNTING SOFTWARE ENHANCEMENT TOWARDS GST COMPLIANCE.

1. Check the Foreign Exchange Rate Gain or Loss Account setting at Tools | Options...(General Ledger). For example,

Default Account	GL Account Code
Foreign Exchange Rate Gain Account	530-000
Foreign Exchange Rate Loss Account	980-000

2. Select the Foreign Exchange Rate Gain or Loss Account, click APPLY.

3. You can see the Foreign Exchange Rate Gain or Loss posting transactions in GL Ledger.

Account	Local DR	Local CR	Explanation
Total Gain on Foreign Exchange	0.00	8,480.00
Total Loss on Foreign Exchange	593.60	0.00
Net Realized Forex	593.60	8,480.00	8,480.00 - 593.60 = 7,886.40 GAIN (IES)

NOTE: 
RMCD has confirmed that Net Realised Gain in Forex ONLY need to add into GST-03 item 12 Total Value of Exempt Supplies.
Tax code = IES


Net Realised Loss in Forex will be NIL.

Summary: Comparison between GST-03, GST Listing and Ledger Report

Here is the result summarized:

Description	GST-03	GST Listing	Ledger Report
IES		5,000.00	5,000.00
IES (Realized Gain Forex)		7,886.40	Forex Gain = 8,480.00 Forex Loss = -593.60 Net Forex Gain = 7,886.40
ES		50,000.00	50,000.00
Total Item 12 (ES + IES)	62,886.40	62,886.40	62,886.40