GST tax code prior register
Hi my company just register GST on Jun 2017,
How should I capture supplier tax invoice? what is the tax code i should use?
what is the double entry to capture supplier tax invoice?
Should I use tax code TX-NC?
Example Supplier Tax Invoice:
1 unit item A – RM1000/unit
GST 6% – RM60
Total payable include GST – RM1060
First of all you need to identify what is item A which you have purchased. Is it an exempt supply, zero-rated supply or out-of-scope supply. From there you will know what tax code to use. Normally any purchases in the course or for the furtherance of business is input tax claimable (TX).
Using you example :
Dr. Raw Materials (item A) – RM1,000.00 (TX)
Dr. GST Input Tax Credit (item A) – RM60.00 (TX)
Cr. Supplier (GST registered person) – RM1,060.00 (OP)
You get what I am trying to explain you?