Exact Globe

Product Updates 410, 409 and 408: Further enhancements on the Goods and services tax (GST) reporting functionality (Malaysian legislation)

A series of enhancements have been integrated to the existing GST reporting functionality in accordance to the latest GST regulations. For more information on the past release, see Product Updates 409 and 408: Goods and services tax (GST) return reporting functionality introduced (Malaysian legislation).

The following outlines the enhancements and the areas affected:

• Application of the Malaysia Standard Industrial Classification codes
• Setting up and maintaining classifications for the MSIC in your system
• Generation of GST audit files (GAF) based on reporting date

Application of the Malaysia Standard Industrial Classification codes

In Malaysia, GST returns are to be filed within the taxable period using the GST-03 form, effective April 2015. According to the latest GST guideline, it is mandatory to disclose the nature of business for the taxable supplies based on the MSIC (Malaysia Standard Industrial Classification code) standard. For a complete listing of the MSIC codes, see www.statistics.gov.my

In Exact Globe Next, such information is made available to you via the Extra VAT data button in the Value added tax screen, as shown in the following example.

Once Extra VAT data is clicked, you will be able to define the MSIC codes for the declaration, alongside other details.

The MSIC codes in the Value added tax screen are used to classify the supplies for GST reporting purpose. The information will be displayed in the GST-03 form, under the Item 19 section with the respective values and proportions.

Before the classification process can be automated, you must assign each item or product to a MSIC code, as designated by the tax authorities. To set up the MSIC codes for your supplies, see Setting up and maintaining classifications for the MSIC in your system.

Generally, these codes are optional. You may type up to five numeric characters for the MSIC code. Each code is unique, hence, can be used once only.

In the GST-03 form, the disaggregation of total taxable amount is segmented according to the MSIC standard. Items without any individual codes will be assigned to the default MSIC code, if any. Any supplied items without either the individual code or default code will fall under the “Others” category.

This change will be reflected in the text file which you can create after selecting the Export to file option, and the defining the storage location at Export directory in the Value added tax screen at Finance ? VAT / Statistic ? Value added tax.

Setting up and maintaining classifications for the MSIC in your system

You can specify a default MSIC code for your supplies in general, and for individual items. The Default MSIC code can be defined in the Item data settings screen, accessible from System ? General ? Settings, as shown in the following example:

You can add and maintain classifications for the MSIC for individual supplies at MSIC code in the Items screen via Inventory ? Items ? Maintain or Invoice ? Items ? Maintain.

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Generation of GST audit files (GAF) based on reporting date

Some adjustments have been made to date criteria in the Audit file screen to accommodate the latest change in the GST regulation in Malaysia, which is to enable the GAF to be generated based on the reporting date.

With this enhancement, you have greater flexibility in generating the type of GAF reporting you want for your business transactions within the period range defined, either by the transaction date or reporting date.

Note: If you are generating the GAF for the first time, the option preselected at the date criteria in the Audit file screen depends on the value you have preset for the Check: Closed periods setting under the Period and year control section in the General settings screen. For more information, see General settings.

The generated GAF will be stored in the XML format, located in the path specified at Export file.

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