GST-03 Item 12 (ES + ES43) : 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 to check the Item 12.

GST Expenditure (Effective from YA 2015)

1. para 39(1)(o): GST input tax paid or to be paid not allowed as deduction if:-

a. Non-registered person with turnover exceed GST threshold of Rm500,000.

b. Registered person fail to claim input tax credit his entitled to claim.

2. section 39(1)(p): Output tax absorbed by GST by registered person is not allowed as tax deduction.

3. GST block input tax & deductible expenses:-

Block Tax	GST input Tax	Tax deductible?
Passenger car (Cost and maintenance)	Blocked	Deductible (to claim capital allowance)
Club subscription fee	Blocked	Non-deductible
Medical insurance/personal accident insurance	Blocked	Deductible
Family benefits	Blocked	Depend (check with your auditors or tax consultant)
Entertainment expenses (Potential customer)	Blocked	Non-deductible
Entertainment expenses (Supplier) (p	Blocked	Allowed 50% deduction

[GST | Maintain Tax ...]

1. Click New.

2. Follow the below SETTINGS to create.

Field Name	Field Contents
Code	ND-0 (Recommended code)
Description	Non-Deductible
Tax Type	(Non GST - Both Sales & Purchase)
Tax Rate	0% (please key-in)
Tax Account	GST-301 (This field is compulsory. Due to tax rate is 0%, therefore no posting)
Tax Inclusive	Untick

3. Click Save. See below screenshot.

NOTE : 

Do not click the tax rate arrow key down if the tax account is not defined yet.

For Purchase Invoice

1. Insert a new detail row and key-in the total input tax not going to claim.

2. Select the tax code "ND-0".

3. See below screenshot.

For GL Cash Book

1. Insert a new detail row and key-in the total input tax not going to claim.

2. Select the tax code "ND-0".

3. See below screenshot.

NOTE: 
Please ensure you understand the Non-Deductible expenditure from your auditors before you apply this guide.

[ GL | Print Journal of Transaction Listing...]

1. Select the date range to APPLY.

2. Filter at the Tax grid column. See screenshot below.

3. You can see the non-deductible transactions filtered by ND-0.

4. From this instance, the total non-deductible expenditure amount is Rm3030.00