Consignment sales statement

Hi,

According to GST treatment on consignment sales, consignor has to issue tax invoice within 21 days based on consignee sales statement date. According to customs, the invoice value and products has to be tie with consignee sales statement.

We have a problem that some of our consignee (departmental stores) are not able to provide their sales statement with breakdown of our sku sales as their POS system is capture at price point level. One price point consist of multiple supplier sku.

Can anybody advise what should we do in order to comply with GST ruling?

Thank you.

In the era of GST, every business has to change their process flow. Every transaction has to be transparent. I am sure your consignees are aware of their responsibilities and are in the midst of upgrading their systems.

Have a round-table discussions with them.

In the meantime, without the detailed breakdown of the SKUs, bill them in a lump sum. Example:

GST on sale of standard-rated items = RM10,000 x 6% = RM600
GST on sale of zero-rated items = RM5,000 x 0% = NIL

We had discussed with them. They said they are not going to change their system or set up barcode according to our sku because they have thousands of suppliers and impossible for them to do it.

Business has to be continue ...

At our end, we need to issue tax invoice by sku to update inventory and sales.

Also will customs accept lump sum?

Dept stores are the big players. Blame it on them should Customs come knocking on your doors, which is unlikely in this one or two years.

Anyway, I don't think Customs bother so much as long as you are not understating your output tax.

The 12 months ruling will help the consignees, in making sure the goods are accounted for correctly.

Our company always deliver goods to customers by consignment term which means that we deliver by DO and customers will keep the stocks until when they don't use much on the rest of the goods we deliver previously, they will return the goods to us and by that time we only issue invoice to them for the real qty of goods that have use & purchase, but normally we will issue the invoice to them more than 21 days, so is it after the GST Start on April 2015, we cannot practice the way like above I describe??

Once your consignors issue you a consignment sales statement, you have to raise a Tax Invoice to them within 21 days. Failing to do so, your time of supply is the date of the consignment sales statement.