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GST Implementation : Responsibility of Which Department ?

GST implementation impact on all division of your business

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Contrary to common belief, GST is not just the duty of Finance or Account Department. GST involves more far reaching changes than that is perceived.
It requires collaboration from all division of the company.

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Read on to discover what are the changes that needs to be in place to ensure GST is implemented properly.

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For those who have implemented GST or in the midst of GST implementation, one would have realised that it is not the comprehension of GST which is challenging , it is “CHANGE MANAGEMENT” that plays an important role.

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Sufficient understanding and cooperation are required to achieve smooth GST compliance.

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Click here to see the TO-DO list for each department’s responsibility in relation to GST Implementation.

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Full---Infographic-GST-by-department

 

 

[br]Here’s a sample list of the changes or to do by department [br][br]

 

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[one_half last=”yes” text_align=”text-align-left”]Click the button below to download the to-do list

[button link=”https://powerfulmanager.com/wp/wp-content/uploads/2015/01/Cheat-Sheet-for-GST-Implementation.pdf” target=”_blank” shape=”square” size=”large” outline=”yes” color=”black”]Download the to do list[/button][/one_half][br]

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UPCOMING EVENTS

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GST INTERMEDIATE (Last Session)

Date : 20 November 2014
Venue : The Gardens Hotel, Mid Valley

Price : RM 1,280
Speaker : Dr Choong Kwai Fatt

Find out more … click here [/one_half]

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GST BUDGET 2015

Date : 18 November 2014
Venue : The Gardens Hotel, Mid Valley.Price : RM 2,280
Speaker : Dr Choong Kwai Fatt

Find out more … click here [/one_half]

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Sample of duty by department

 

 Account department
  1. Review the accounting system to ensure that it creates the proper and convenient entries for GST return.
  2. Identify the activities, transactions and categories of revenue and expenditure for which GST could have implications. For instance separate records will have to be kept of sales at different rate of GST.
  3. Identify the precise stage at which GST is applies to each type of supply.

 

 Sales & marketing
  1. Review and modify, existing stationery, especially designing the “tax invoices” for supply of goods and services. Arrange for printing new forms in advanced as many other may be making similar demand on printing.
  2. Modify cashier register;
  3. Assess whether GST will have any effect on contract obligations;
  4. Ensure marketing personnel understand the basis for price displays on price tag, price cards, and in advertisement (take into account factor such as “discount” and “credit”.
  5. Review credit terms of existing customer, whether it will trigger the “bad debt relief” mechanism.
  6. Consider whether to display pricing “inclusive” or “exclusive” of GST.

 

 Stock
  1. Depending on taxation of stocks and capital goods under the earlier sales tax and transitional provisions for reimbursement, decide whether such purchases should be advanced or delayed.
 Purchasing
  1. Assess whether GST will have any effect on contract obligations;
  2. Mechanism to verify validity of vendor’s GST license.

 

 Treasury
  1. Carefully review the entity’s cash flow positions, remembering that though liquidity may be improved (because stocks bear no GST), the GST is still due to the authorities whether or not the cash has been received by customer. Failure to pay GST promptly can have serious financial consequences.

 

 

 GST project team
  1. Appoint a senior staff to ensure that things get done at the right time and in the right order to prepare for GST. Use project planning software such as basecamp.com or teamgantt.com to monitor the team’s progress. This staff member should be in charge of training all levels to understand GST and how it may change their work in house, with suppliers and with customers (for example : in a retail store, the paperwork needed to refund to a tourist).SAMPLE CONTENT OF YOUR IN HOUSE TRAINING
  • Establishing master file system
  • Structure and content of accounting system
  • Programming requirements preparation
  • Posting and analysis techniques
  • Data and accounting control
  • Transaction and command codes
  • Validity checks concepts
  • Application of document locator number
  • Error and un-postable resolution standards
  • Computer generated transactions and notices
    (eg. Bad debt reliefs)
  • Return processing procedures
  • Processing cycle
  • Passwords and security features
  • Data base management concepts
  1. Modify computer programs
  2. Identify whether the company activities are eligible to use the “cash” basis instead of “invoice (accounting) basis”; if this option is available identify which is more advantages
  3. Determines whether change of accounting period is needed to ease satisfaction of GST requirements;
  4. If an activity is conducted by a company that is part of a group of companies, determine in the light of administration and cash flow) whether it should go for group registration;
  5. Review any possible advantages from in house provision of “exempt” supply services;
  6. Decide whether to carry our GST implementation in house or hire external aid
  7. Monitor progress and reporting from gst consultant.

 

 Have not started working on your implementation plan ?

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If reading the to do list sounds Greek to you.

You might want to consider to attend the following events:

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GST INTERMEDIATE (Last Session)

GST KL S4
Date : 20 November 2014
Venue : The Gardens Hotel, Mid Valley

Price : RM 1,280
Speaker : Dr Choong Kwai Fatt

Find out more … click here

 

GST BUDGET 2015

GST Budget 2015
Date : 18 November 2014
Venue : The Gardens Hotel, Mid Valley.

Price : RM 2,280
Speaker : Dr Choong Kwai Fatt

Find out more … click here

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