A2000 ONLINE SUPPORT DEPARTMENT 

     KNOWLEDGE BASE

    GST Difference Incurred During Over Rate Cross          

DESCRIPTION:     How to book in differences charged by Customers over additional GST rate increase over 

                             cross-over period from 7% to 8%?

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SCENARIO

This scenario arises out of Singapore’s GST rate increase from 7% to 8% with effect from 1-Jan 2023. This event will repeat again on 1-Jan 2024 when it will move to 9%.

1. Goods arrived Singapore on Dec 2022, and was charged 7% GST at Customs. However, it was only delivered to the customer warehouse on Jan 2023, and Singapore Customs charge an additional 1% GST
2. These2 taxes of 7% and 1% are charged under separate invoices by Singapore Customs
3. In this example, the additional amount to pay Singapore Customs is $76.05. How do we book this in A2000ERP?

SOLUTION

Enter the transaction in a GC as follow:

STEP 1 – Enter the import value under 8% (full amount under 8%) on the debit side.

STEP 2 – Enter the same import value under 7% but this is entered on the credit side (since this 7% was already recognized in)

The resultant transaction looks like this:

The GL balance for above will thus have a net of $ 76.05.

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