QuickBooks – File Tax Return
Software: Intuit #QuickBooks desktop #accounting software
You have to File Tax Return after the GST cycle. File Tax Return is a QuickBooks internal process, which contra the GST Input and GST Output account and transfer the balances to the Receivable or Payable account. It is not a process of filing tax with the Comptroller of Goods and Services Tax. The filing of Form 5 online still has to do it manually at the Tax portal.
Assuming as at last GST Cycle, you have $22,475.82 in Tax on Sales (GST Output) and $13,319.45 in Tax on Purchase (GST Input). When you are ready to file GST, you click the “File Tax Return” button at the top of the Tax Detail Report to start the file tax process. You have an option of using the default Accounts Receivable or Accounts Payable account or create a separate account to capture the net GST claimable or payable amount. After the file tax process, QuickBooks automatically record a General Journal to reclassify the balances from the GST Input and GST Output account to the Receivable or Payable account. For the above example, it debits GST Output 22,475.82, credit GST Input 13,319.45 and Accounts Payable of 9,156.37.
After reclassification, both GST Input and GST Output has a zero balance and will remove from the Balance Sheet report. You can find the net GST claimable or payable for the quarter in the Accounts Receivable or Accounts Payable ageing report. Then, use a Receive Payment transaction to record the refund received or a Pay Bill transaction to record the payment made to the Comptroller of GST.