GST Formula overview

It is most important to understand GST formula in filling GST return of the business. The simple equation is Output tax minus input tax, which most of the employer always tell the account personnel “Hello, how hard GST is?  It is just output minus input“ LOL, Go ahead reading as we learn how.

The difference between Output tax and input tax is GST payable.  GST is claimable when input tax is greater than output tax.


However, when we take a depth look on the formula, the Royal Malaysia Custom (RMC) who administers the GST rules has been made some restriction on Input tax. Therefore, what input tax mean is actually ALLOWABLE on input tax.

When we put 3rd lens on the equation, both the Output tax and allowable input tax has its respective adjustment. 



GST can be recorded on Invoice Basis of all businesses, such as unpaid sales that includes output tax and unpaid purchases that include input tax .

Payment Basis (a.k.a Cash Basis) are only applicable to small business like barber, retailer, sundry shop, restaurant and bakery with less than RM1m turnover and who deal 80% sales for immediate cash. Refer to for more detail information. 

Now, we need to put 4th lenses to look at what is Output tax and input tax equation. Please look at illustrated graphic to get full understanding.Screenshot_072715_094543_PMScreenshot_072715_094604_PM





After understanding the GST formula, Everbook had spent significant amount of man hours to create pivot table of excel for cash book, income & expense report, and GST summary of customer and supplier credit invoices.  These have known to be GSTBOOK. We become successful as we decided to trademark it.  We mostly used and tested excel to our small businesses client who has no budget for accounting software.  Click to view Do-It-yourself GSTBOOK



We feature to use MS Excel, no software, no tax code, no cost, and no double entry accounting for GST solution to small businesses, just 1 time donation. This solution is solely for GST submission purposes. For some businesses that have complicated transaction are not recommending to use.



GSTBook Reports can be served as personal Income tax submission if it is add up those reports for a year. For Auditing purposes, your accountant might need to work extra hours to  re-produce management account prior to audit engagement and company tax submission. Some of our micro client prefer this DIY solution, not investing in software but engage us as accountant and tax agent to do their annual accounting and income tax return. it save cost and time of learning.


GST reportOur Do-it-yourself GSTBook is free from software hassle, quick solution for GST submission. great convenient  to excel immediate level user.  




EVERBOOK is authorize reseller of QuickBooks online and Million accounting software.  Furthermore, we represent Certified Bookkeeper, Chartered Accountant and Licensed Tax Agent. Apart from DIY GST solution, do contact us for free quotation for GST bookkeeping or incorporation of new startup. we can grow with you. 



stanley ng

Stanley Ng a writer of, from lifestyle entrepreneur, small business, cloud technology, and everything in between. Stanley loves to travel both for work and leisure, an eye opener for him to feel and meet each of his associates on how they work and live.

More Posts - Website

Leave a Reply