Free gift to Customer worth RM3774.00

The GST code to be use is DS, however this transaction cannot issue any tax invoice as this is not sale. I am using SAP system, this transaction were been captured under Goods Issue and the double entry shown is,

Dr Free Gift Account
Cr Finished Goods

Another Transaction created under Journal Entries to capture the GST incur and the double entry is,

Dr GST Expenses
Cr GST Payable

Question:
1.Kindly advise above double entries is correct?
2.These transactions on ‘DS’ should be shown at ” S ” column at GAF file due to GST Payable but unfortunately not been show at GAF file unless if the transaction captured under A/R invoice issuance. As such can issue a tax invoice to capture this transaction? As the payment will not be receive another Journal transaction to be create to Offset A/R receivable account.
3.Or all the above entries correct, only need to check with SAP supporter to capture this transaction under “S” column?

Kindly advise which is the correct way in order to have a correct GAF reading.

Asked on April 10, 2018 2018-04-10 10:44:30 Business (商家)
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1 Answer(s)

Your accounting double entry is correct.  On the issue of tax invoice, I suggest you refer back to the software reseller / support to clarify the situation because they are well aware of what to expect in GAF.  Normally for gifts under deemed supply, one can issue either tax invoice or normal commercial invoice.  If you want to confirm this matter, please consult the GST Officer at Customs near your place.

Answered on April 11, 2018. 2018-04-11 02:15:25
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