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

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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.
GST GST-03 Item12-14.jpg


2. IES - Realized foreign exchange gains or losses
a. Realized Gain in Foreign Exchange
Screenshot below from Customer Payment.
GST GST-03 Item12-15A.jpg


b. Realized Loss in Foreign Exchange
Screenshot below from Customer Payment.
GST GST-03 Item12-15B.jpg


3. ES - Financial Institution’s interest charges to customers for loan
Screenshot below from Customer Invoice.
GST GST-03 Item12-16.jpg


GST-03 Item 12: Total Value of Exempt Supplies

[GST | Print GST-03...]

1. For instances, the GST-03 Item 12 = Rm62.886.40
GST GST-03 Item12-01.jpg


2. You can check the details by double click on the amount in Item 12.
3. Pop-up the item 12 detail.
GST GST-03 Item12-02.jpg


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.
GST GST-03 Item12-03.jpg


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.
GST GST-03 Item12-04.jpg


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
GST GST-03 Item12-05.jpg


b. IES (Net Realized Forex Gain ONLY)
GST GST-03 Item12-06.jpg


c. ES
GST GST-03 Item12-07.jpg


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).
GST GST-03 Item12-08.jpg


3. Transactions related to ES. See the screenshot below.
GST GST-03 Item12-09.jpg


3. Transactions related to IES. See the screenshot below.
GST GST-03 Item12-10.jpg


Special Posting for Net Realized Gain Forex (IES)

Below question and answer extract from GUIDE ACCOUNTING SOFTWARE ENHANCEMENT TOWARDS GST COMPLIANCE.
GST GST-03 Item12-13a.jpg
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
GST GST-03 Item12-11.jpg


2. Select the Foreign Exchange Rate Gain or Loss Account, click APPLY.
GST GST-03 Item12-12.jpg


3. You can see the Foreign Exchange Rate Gain or Loss posting transactions in GL Ledger.
GST GST-03 Item12-13.jpg


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


See also