Print GST Bad Debt Relief

GST Bad Debt Relief

Introduction

A taxable person may claim bad debt relief subject to the requirements and conditions set forth under sec.58 of the GSTA 2014 and the person has not received any payment or part of the payment in respect of the taxable supply from the debtor after the sixth month from the date of supply.

The bad debt relief may be claimed if -
(a) requirements under s.58 GSTA and Part X of GST Regulations 2014 arefulfilled; and
(b) the supply is made by a GST registered person to another GST registered person

The bad debt relief shall be claimed immediately in the taxable period after the expiry of the sixth month from the date of supply.

If the bad debt relief is not claimed by the supplier in the immediate taxable period immediately after the expiry of the sixth month, then the taxable person has to notify the Director General (DG) within 30 days after the expiry of the sixth month on his intention to claim at a later date.

A GST registered person who has made the input tax claim but fails to pay his supplier within six months from the date of supply shall account for output tax immediately after the expiry of the sixth month (s.38(9) GSTA).

The word ‘month’ in sec.58 refers to calendar month or complete month –
Example: Invoice issued at 15 th January 2017. For monthly taxable period, the sixth month expires at the end of June and the bad debt relief shall be claimed in July taxable period.

See below the overview of GST Bad Debt Relief system flow:

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Check List related to Bad Debt Relief

Maintain Tax

[GST | Maintain Tax...]

Tax Code	Description	Tax Acc Entry	Explanation
PH-AJP-BD	Input Tax adjustment e.g: Bad Debt Relief	DR GST-Claimable; CR GST-Purchase Deferred Tax	For supplier bad debt relief recovery
SL-AJP-BD	Input Tax adjustment e.g: Bad Debt Relief	DR GST-Claimable; CR GST-Sales Deferred Tax	For customer bad debt relief claim
PH-AJS-BD	Output Tax adjustment e.g: Bad Debt Recover, outstanding invoice > 6 months	DR Sales Deferred Tax; CR GST-Payable	For customer bad debt relief recovered
SL-AJS-BD	Output Tax adjustment e.g: Bad Debt Recover, outstanding invoice > 6 months	DR GST-Purchase Deferred Tax; CR GST-Payable	For supplier bad debt relief payable

GST Listing

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GST-03

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GST Bad Debt Relief

[GST | Print GST Bad Debt Relief…]

1. Enter the purchase value of second car at Purchase Invoice. (eg. RM30,000 )
2. You must select the correct car plate number from Project. (eg. PGE3333)
3. Supplier GST No, Purchase invoice number, date and cost will be update automatically after you have save the purchase invoice.

Purchase Detail	Update from
Supplier GST No	Maintain Supplier
Purchase Invoice No	Purchase Invoice
Purchase Invoice Date	Purchase Invoice
Cost	Purchase Invoice

NOTE :
1.
2.