Why is it not allowed (especially when you are GST registered)?
This is because Section 36 (1) of the GST Act 2014 stated that all taxable person and certain non-taxable person are to keep full and true records of all transactions which affect or may affect his responsibility to tax. It is against the law to delete/void/cancel any record.
Besides, according to Section 51 of the GST guide on Tax Invoice and Records Keeping 2014, keeping a full record is to enable GST auditors to establish the nature, time and value of all taxable supplies and importation of goods and services. Under the same section, it is also stated that full records and information is needed to help GST auditors in reconciling accounting records with the GST.
Hence, all serial numbers in all records should not be skipped or missed in GST related records.
For those who are not GST registered, there is no law to restrict the act of deleting invoices. But keeping the same practice is strongly advicable as it helps in making sure that your account is accurate, balanced and neat.
image taken from Rawlinsons Connect, 2017.
Penalty involved
According to the laws in Malaysia, GST Act 2014 Section 36 (7), anyone who contravenes did not keep a full record of the document shall be liable to:-
- a fine of not more than RM50,000 or
- to imprisonment for a term not exceeding 3 years or
- both.
Accounting software and GST
TreezSoft is a GST certified accounting software. To comply to the rules and regulations in GST, TreezSoft does not allow you to delete/void/cancel any document that is created under GST mode.
Accounting software like TreezSoft is designed to simplify GST related procedures (e.g. Tax return, Relief claims, etc) and make sure records in your accounts are accurate. It also makes it easier to stay on top of your accounts by giving you the tools to enter income and expenses and track changes in your cash flow.
Below is a link to the Acts and Guide mention in this post:
- the GST Act 2014
- the GST guide on Tax Invoice and Records Keeping 2014
Continue reading for GST:
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Visit TreezSoft at http://www.treezsoft.com/ to sign up for a 30 days trial account with us!
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