Understanding GST Tax Codes - Part 5

GP (Group) and AJP (Adjustments for Purchases)

GP

Purchase within GST group registration, purchase made within a Warehouse Scheme etc.

Description	Dr.	Cr.	Tax Code
Expenses paid within Group	Expenses		GP
		Bank / Cash

AJP

Adjustment made to input taxes such as bad debts relief and other input tax adjustments.

YOUR supplier is allowed to claim Bad Debts Relief if you have to paid YOUR supplier. Please refer to AJP for Supplies, which will be published in due course. Likewise, YOU as supplier's customer will have to do the same by reversing your Input Tax claimed earlier. You will noticed that these transactions are the opposite of each in "supplies".

"GST - Adjustment Control Account" is a suspense or temporary account created to facilitate the accounting double entry. These entries are NOT necessary if your accounting system was programmed to make these adjustment without posting any accounting journal entries. Alternatively, you may wish to make the adjustment in your GST-03 return manually and note the adjustment in a separate record.

Description	Dr.	Cr.	Tax Code
Non-payment to supplier after 6 months		GST - Output	AJS
	GST - Adjustment Control A/C
Subsequent payment made to suppliers	Trade payables
	GST - input tax		AJP
		GST - Adjustment Control A/C
		Bank

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