1. HANDLING NEW GST
With effect from 1st January 2003, the GST (Goods & Services Tax) rate will be increased from 3% to 4% and from 1 January 2004, to 5%. All GST-registered businesses is to be prepared for this change in rate. IRAS rules and guidelines are required to be observed in the transition to the new rate. Systems Design’s software packages need some adjustment to cater for the implementation of the new rate. Customers on software maintenance will be getting this update free of charge.
By 1st January 2003, a new rate and an old rate will be maintained for the standard rate GST Code. With this feature, invoice, credit note and other accounting entry functions will compute GST based on document date. This will facilitate the situation where invoices are for year 2003 are required to be charged at 4% GST rate and other accounting entries posted for year 2002 documents which are required to handle GST based on 3%.
For system that generate credit note for 2003, it will allow user to identify old GST rate transaction in order to handle credit note that is to be issued for year 2002 sales. In the case of manual transaction posting entry such as creditor’s bill, credit note, etc., system will generate GST related amount based on document date and allow user to overwrite when necessary.
Systems Design will deliver those GST affected programs in December 2002 for those customers with software maintenance without charge. By 1st January 2003, user just need to adjust the new rate to 4% and maintain the old rate at 3%. We foresee that the GST rate change will have minimal impact on our customers’ system. Of course, this process has to be done again next year when the rate changes from 4% to 5%.