The Impact of GST on Accounting

Unlike other taxes, the Goods and Services Tax (GST) is an integral element of the accounting function of any organisation. Under the GST regime, the registered business must be able to track all transactions that it enters into either on the purchases side (expenditure) or the income/supplies side. You pay GST on the goods you purchase, and charge your customers on goods you sell. You remit to the Royal Malaysian Customs (RMC) the amount of GST you charge customers; less any GST you pay on business-related purchases that qualifies as an input tax credit. It is important that businesses identify and implement ways to properly maintain their accounting processes for GST as well as record-keeping practices to avoid the strict penalties imposed for non-compliance.

• Preparing and administering GST accounting
• Setting up tax codes and completing the GST return
• Recording the different types of accounting entries
• Adjustments on GST
• Reconciling the GST return form, and
• The impact of GST on financial statements, income tax, import duty, RPGT, stamp duty, etc.