How to submit the GST Final Amendment

Final Amendment to GST

Malaysian GST Has abolished since 1 September 2018, it was a historical moment as Malaysia is the first country who abolished GST. 

Obviously, we can’t just say STOP, as there are too many ongoing issues interconnected with GST, such as input tax credit pending refund, adjustments to the tax invoice, and taxable supply after the abolishment, bad debt relief and many more. In this respect, the Royal Malaysian Customs Department (RMCD) allows a 2 years’ transitional period. These 2 years allow taxpayers to adjust any input tax, output tax and bad debt relief.

Generally, there are 4 scenarios:-

1. As a supplier, you decided to write off a customer’s debt, hence you need to do the final GST adjustment;
2. As a supplier, you have written off a customer’s debt and claimed input tax credit. Now you want to pay it back;
3. As a customer, you have claimed the input tax credit but have not made any payment. RMCD remands you to pay back to them; and
4. Last but not least, as a customer, you have accounted the output tax (under bad debt relief) and in view of the fact that you have repaid your supplier, you now wanted to claim back the input tax. 

All the above require some adjustments to your accounting and also to amend the Final GST Return. You can refer to our video for the journal entries and submission guide. 

You can also refer to RMCD’s Tax Invoice Guide and GST Adjustments guides. Please also take note on 28 August 2020, we found out that the due date (31.08.2020) was removed from the GST Adjustment guide. RMCD has yet to announce its views or provide any extension.