GST update – Customer Accounting

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    GST update – Customer Accounting for Prescribed Goods

    Customer accounting for certain products will be implemented to prevent fraudulent schemes where the seller escapes by collecting GST update, but businesses further down the supply chain continue to demand input tax. The prescribed products are mobile phones, memory cards and off-the-shelf software, which are commonly used in these fraudulent schemes.
    The GST-registered customer has to apply the customer’s accounting for the relevant supply of the product prescribed for his business purpose. A relevant supply is:
    1. Local sales of a specified product whose GST-exclusive sale price exceeds 25% per unit invoice
    2. supply is not an exception.
    Under customer accounting, responsibility for output tax on supplies is transferred from the supplier to the customer.
    GST update – Customer Accounting for Prescribed Goods

    Learn With Network BD How Customer Accounting Works

    1. The supplier sells the prescribed product and does not charge GST to the GST-registered customer
    2. The customer will account for the output tax as if he were the seller
    3. If the purchase is made for taxable activity, the customer claims GST in full
    4. Impact: There is no flow of GST from customer to supplier.

    Get Current Accounting Prescribed Goods With Us

    Mobile phones
    Examples include smartphones and Blackberries Exclusions apply – such as mobile phones purchased together with a mobile subscription and call service plan.
    Memory card
    Electronic flash memory data storage devices are used to store digital data Exclusion applies – thumb drive and external hard disk.

    In-House Off-the-shelf software For GST update

    Stored on a compact disc or similar storage medium, or accessed using a product package or license key supplied in a physical package
    Exclusions apply – such as software downloaded from the Internet and accessed through a product key or license key that is not delivered to the customer in a boxed package.
    Accepted supply
    An exceptional supply is a supply of a specified product that is specifically excluded from customer accounting:
    Supply of manufactured products under GST Gross Margin Scheme
    Supply of products made under an approved third party logistics company scheme or approved refiner and consolidator scheme to an authorized / designated person, and
    A taxable supply of goods arising from the transfer or disposal of goods without consideration.

    FAQ For Customer Accounting For Prescribed Goods

    How do you record GST in accounting on NetworkBD?

    Steps on how to record GST A customer’s purchase is debited as gross depending on the amount paid in full or in cash under the account due, depending on how the client paid. The amount of net sales will be credited, and the GST payable to the account will be increased along with the tax collected.

    Can a non-GST registered company issue a tax invoice?

    When to issue tax invoices You will need to issue a tax invoice once your customer is GST registered.No need to issue tax invoices for zero-rate supply, exemption supply and deemed supply or for non-GST registered customer.

    What is the prescribed product?

    Prescribed product means any product sold by the company in the general course of business which is included in any strategic plan of the company on or after the expiration date.

    What happens if a supplier is not registered for GST?

    If the supplier is not registered for GST, they will not be able to charge GST – and therefore you will not be able to claim GST, since none has been charged. You cannot issue invoices – suppliers must.

    The Best GST Update For Customer Goods Available In Bangladesh