Sole Proprietor (not GST-register)

Good day, Experts!

How will a non-GST registered sole proprietor accounts for purchases and expenses with GST?

Example:
Purchase RM100 + GST RM6 = RM106

Should my double entry as below??
DR Purchases RM100
DR GST expense off RM6
CR Creditor RM106

Need advise. Thanks.

Asked on November 17, 2017 2017-11-17 07:12:12 Business (商家)
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4 Answer(s)

Yes. Your double entry is correct. Remember as a non-GST registered person you also need to submit GST-04 online.
You can download from their website and refer to GST Guide on GST-04 Online Submission.

Answered on November 18, 2017. 2017-11-18 00:33:43

But if the sole proprietor business activity is restaurant and annual threshold is less than RM500k, do i still need to do GST submission?

on November 18, 2017. 2017-11-18 15:44:09
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Yes.  You need to submit using Form GST-04.  This form is for non-GST registered person.

Answered on November 20, 2017. 2017-11-20 00:31:48
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(1) If you are not a GST-registered person, you may directly include the GST amount as part of your purchases:

DR Purchases RM106 (which has already included GST)
CR Creditor RM106

(2) For non-taxable person, you don’t submit GST-04, unless you fall under following situations:

(a) any person who imports services for the purposes of business;
(b) any agent acting in his own name as an auctioneer; or
(c) any person approved under the Approved Toll Manufacturer Scheme as recipient of processed goods from toll manufacturer.

Refer to General Guide Paragraph 182 for further detail on GST-04.

Answered on November 20, 2017. 2017-11-20 09:41:49

Referring to your reply (1), for sole proprietor yearly tax submission, we need to add back the GST RM6 (considered as disallowed item) in the tax comp, is it??

on November 21, 2017. 2017-11-21 02:26:35
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Yes.  For income tax computation, those disallowed GST expenses is added back.

Answered on November 21, 2017. 2017-11-21 03:36:05

Noted. Thank you so much for the advise, Experts.

on November 21, 2017. 2017-11-21 05:02:05
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