The MAIN GST CODES
There are two main GST codes:
A-GSTP = GST Paid
A-GSTR = GST Received
Examples:
| Bank | Transaction | A-GSTR | A-GSTP | |
|---|---|---|---|---|
| We purchase $115 petrol at a GST rate of 15% | Bank reduces by the full transaction amount | Fuel purchased increases by the transaction amount less the GST | GST Paid increases by $15 | |
| -$115 | +$100 | +$15 | ||
| We sell for cash, $230 of goods at a GST rate of 15% | Bank increases | Sales are actually only $200 | We receive $30 GST | |
| $230 | +$200 | +$30 | ||
| ACCOUNT BALANCES | +$115 | +$30 | +$15 | |
| Balance due to IRD | +$15 |
Looking at the A-GSTR and A-GSTP accounts, you can see that the difference between the two is $30 - $15 = $15.
If these were the only two transactions, this would be the amount due to the IRD at GST time (pay $15 to IRD for GST).
When the GST Due amount is paid; to balance the accounts, you would need to add a transaction to your cash book for the account A-GSTP. We are PAYING for GST we have received so therefore we add a transaction to A-GSTP.
| GST RECON | Transaction | A-GSTR | A-GSTP | |
|---|---|---|---|---|
| ACCOUNT BALANCES | Opening | +$30 | +$15 | |
| Pay IRD GST | +$15 | |||
| ACCOUNT BALANCES | +$30 | +30 | ||
| Balance due to IRD | $0 |
CUSTOMS GST
If you process transactions overseas transactions, you may encounter Customs GST transactions.
These transactions are not a calculation based on a percentage. They are a straight figure imposed by the government body called the Customs Service (in NZ) https://www.customs.govt.nz/personal/import-allowances-and-charges/
When the Customs documents are provided and you pay the GST portion, this transaction is recorded against A-GSTI.
A-GSTI is a special account code that SoEasy knows to include in the calculation of GST (even though the account is flagged as not GST Applicable)
When reporting, A-GSTI is brought into the report
| GST Report | |
| A-GSTR (GST Received) | $12,786 |
| A-GSTP (GST Paid) | $9,586 |
| A-GSTI (GST Paid to Customs) | $3,500 |
| GST REFUND DUE | $300 |