IN: While recording GST paid on expenses, how can i record: No Input Credit, as we don't get input credit?

We are not elgible to receive input credit as our services are exempt. So, we want to create a new tax code called No-Input Credit and show it under expenses in P/L to track how much GST we paid on expenses in a year? Currently when i select tax rates, it is going to my balance sheet under GST input credit.

Answer

Hi, office

GST Exempt and GST Input claim not allowed (similar to zero-rated inputs but not, unique situation and not Deferred GST) are two different situations 

GST Exempt 

No GST is charged to goods you sell and buy

So no GST transactions are entered

GST Input claim not allowed but GST is charged on Sales 

Create an item called Input tax not allowed/restricted and link to an expenditure type item called Input tax not allowed/restricted 

when you creating the bills select this item for Input taxes you not claimed

OR

Create Tax code Move to Tax centre > Add tax > Tax rate > then enter the details such as Name - not allowed/restricted Input taxes > Tax agency - GST/Select relevant > checkmark the Purchases > enter the GST rate not allowed/restricted to claim >Account - Expenses > hit Save.

Note: Expenditure may be not allowed for the purpose of the corporate tax, consult your tax consultant.

Comment back for further clarifications / to discuss.


   





 

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