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Deposit Form FGADCSR and the QST rate change

News

Published: 22 Dec 2011

This communication is directed to those who process taxable sales using Banner Deposit Form FGADCSR.

The QST rate is increasing from 8.5% to 9.5% effective January 1, 2012.  Banner is now updated to reflect this new rate.  When processing sales during the transition period, it is important to make a conscious decision about which tax rate should apply.  As a general rule of thumb:

  • If the deposit relates to a sale with an invoice dated prior to January 1st, 2012 the QST rate is 8.5%
  • If the deposit relates to a sale with an invoice dated January 1st, 2012 and after, the QST rate is 9.5%.

To help you control which rate should apply when processing taxable revenue, we have modified the Banner Deposit Form FGADCSR to include a new field entitled “Sales Tax Effective Date” in the header section.  So regardless of the Transaction Date used, if you enter a December date in the new field (and continue to use the usual Tax Group code), the QST will be calculated at 8.5%.  If you enter a date of January 1st or later, the QST will be calculated at 9.5%.  The “Sales Tax Effective Date” cannot be greater than the “Transaction Date.”

For your convenience, the completion screen (where “Complete” or “In Process” is selected) will also include the tax rates in effective for the document.  This will allow for a final verification prior to submission.

To summarize:


Transaction Date

Sales Tax
Effective Date

Tax Group Code

QST rate applied

December 31, 2011 or earlier

Not required

MCTT

8.5% QST

January 1, 2012 or later

Between December 1 and December 31, 2011

MCTT

8.5% QST

January 1, 2012 or later

January 1, 2012 or later

MCTT

9.5% QST

Need help?
The FGADCSR How-To documents are now updated. See the following:
Article #5239 – How to process a Canadian Currency Deposit
Article #5280 – How to process a Foreign Currency Deposit

For questions regarding the mechanics of FGADCSR, please contact the Finance Help Desk at FISHELP [dot] acct [at] mcgill [dot] ca or 398-3463.

Queries related to the sales tax legislation should be directed to one of the following individuals in the Controller’s office:

Michael Lifshitz, CA, MBA
Financial Officer
Phone:  (514) 398-5999
E-mail:  michael [dot] lifshitz [at] mcgill [dot] ca
Peter Kurhajec, MBA
Financial Administrator
Phone:  (514) 398-6117
E-mail:  peter [dot] kurhajec [at] mcgill [dot] ca
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