GST on Imported Goods

Owned by Diela Kasim (Unlicensed)
Last updated: 2017-Nov-21 by Jia Pei Chan
3 min read

1. Explanation

During Goods Receive Note (GRN), select Tax Code = IM, but make sure the Tax Rate = 0

  1. Note 1: It is important to make sure the Tax Rate is set at 0, because the Supplier Invoice amount from overseas supplier is EXCLUSIVE of GST amount.
  2. Note 2: Tax Code configuration will have 6% for IM Tax Code. So during GRN, if you select the IM code set from drop-down list the tax rate will automatically be 6%. Thus, it is advisable to edit the Supplier first, set IM as the supplier's Default Tax Code, but edit the Tax Rate to 0%. This way, whenever the supplier is selected at the GRN, the items will automatically be charged with Tax Code IM but with Tax Rate 0%

GST on imported goods = (Invoice amount + Import Duty + Excise Duty) * GST rate

2. Guide

Step 1 : Supplier > Maintenance > Create / Edit Supplier

Set the supplier's Tax Code as IM, but change the Tax Rate to 0

Step 2 : Create the GRN for the Supplier


As shown below, the supplier's Tax Code and Tax Rate will used in the GRN

Step 3 : Filing of Imported Goods are done at : Extended Modules > Malaysia GST > Tax Filing > Tax on Imported Goods



Detail explanation on each of the fields above are as below :

  • Company : the company that the Imported Goods is for, or rather the GRN's company
  • Branch : the branch that the Imported Goods is for, or rather the GRN's branch
  • Filing Cycle : decides when the GRN / SINV should be filed into
  • Date : the Transaction Date
  • Adjustment GL Code : This GL Code needs to be paid off during Payment Voucher, when tax is being paid to Royal Custom
  • Tax Code : choose the Tax Code for Imported Goods, which is IM. Do make sure that the Tax Rate is 6%
  • GRN PKID : the GRN which Input Tax will be filed here
  • Save Details : once you have filled up the fields above, click Save Details to proceed with the next part
  • Input Tax Amount : total tax according to K1 / K9 forms for items which have IM tax code. System will automatically calculate tax amount for item which do not have IM tax code
  • Confirm and Save : once done filling up all details, including Input Tax Amount, click Confirm and Save to file the GRN / SINV

Once the GRN is filed, a new Journal Transaction will be created as below :

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