Step 4: Calculating purchases using the calculation worksheet
If you use this method, the amounts you report at all these labels must include GST:
If you are using the accounts method, go to step 5.
G12 Subtotal (G10 + G11)
Add the amounts reported at G10 (capital purchases) and G11 (non-capital purchases). The result is the total of your purchases and importations.
G13 Purchases for making input taxed sales
You don't report G13 on your BAS, but you need to show it in your records – it's used to calculate the amount that you report at 1B on your BAS.
All amounts reported at G13 on the worksheet should also have been reported at G10 or G11.
What to report at G13
At G13, you need to report amounts for purchases and importations – for the part or amount that relates to making sales that would be input taxed sales (see G4 for input taxed sales)
If you received anything from an associate for no payment, or you paid less than the full GST-inclusive market value, you must:
- work out what portion relates to making sales that would be input taxed
- report the portion of its full GST-inclusive market value at G13.
If your item isn't mentioned in this list, check what to do at other labels. Otherwise you may need to include it on another type of return.
Don't report at G13:
- amounts for purchases or importations that relate to making financial supplies – unless you exceed the financial acquisitions threshold.
- GSTR 2003/9 Goods and services tax: Financial acquisitions threshold
You may not be entitled to a GST credit for a purchase or importation that is both:
- provided as a fringe benefit
- wholly or partly relating to making sales that are input taxed.
For purchases and importations that fall into this category, you must do both of the following:
- report the entire purchase price at G13, or the entire amount you reported for the importation at G10 or G11
- not report an amount in relation to the purchase or importation at G14 or G15.
- GSTR 2001/3 Goods and services tax: GST and how it applies to supplies of fringe benefits
G14 Purchases without GST in the price
You don't report G14 on your BAS, but you need to show it in your records – it is used to calculate the amount that you report at 1B on your BAS.
All amounts reported at G14 on your worksheet should also have been reported at G10 or G11.
What to report at G14
At G14, you need to report amounts for purchases and importations that didn't have GST included in the price. This includes sales that were
- GST-free or input taxed
- made by an entity not registered for GST
- not connected with Australia (and not taxable)
- non-taxable importations
- intangible supplies purchased from off-shore that are not subject to a GST reverse charge.
- payments of Australian taxes, fees and charges where GST was not included in the price charged.
G15 Estimated purchases for private use or not income tax deductible
You don't report G15 on your BAS, but you need to show it in your records (as it's used to calculate the amount you report at 1B on your BAS).
All amounts reported at G15 on your worksheet should also have been reported at G10 or G11.
What to report at G15
You need to report amounts for the following purchases or importations at G15 even if you are an income-tax-exempt entity.
You need to report:
- amounts for purchases and importations of a private or domestic nature – if a purchase or importation was only partly of a private or domestic nature, you must work out the portion that was of private or domestic nature and only report that portion
- anything received from associates for no payment or for less than the GST-inclusive market value – in these cases you must
- work out what portion of the thing is of a private or domestic nature
- report that amount of the GST-inclusive market value of the thing at G15
- non-income tax deductible purchases or importations, including
- expenses for maintaining your family
- uniforms, except compulsory or protective clothing
- the following expenses except where they are incurred in providing a fringe benefit
- entertainment expenses
- travel expenses for relatives
- recreational club expenses
- leisure facility or boat expenses
- expenses you incur under an agreement for providing non-deductible non-cash business benefits (up to the arm’s length value of that benefit)
- any part of purchases and importations that are non-deductible for income tax purposes, including expenses for
- providing meal entertainment – if for fringe benefit tax purposes you use either the 50/50 split method or the 12-week register method to determine the taxable value of meal entertainment fringe benefits
- entertainment facility leasing – if for fringe benefit tax purposes, you use the 50/50 split method in relation to these expenses
- If you have made valid annual apportionment elections, report your private portions of purchases and importations.
G16 Subtotal (G13 + G14 + G15)
Add the amounts reported at G13 (purchases for making input taxed sales), G14 (purchases without GST in the price) and G15 (estimated purchases for private use or not income tax deductible). The result is the portion of your purchases and importations that you cannot claim a GST credit for.
G17 Total purchases subject to GST
Subtract G16 from G12. The result is the portion of your purchases and importations you can claim a GST credit for.
Report any decreasing adjustments at G18.
G19 Total purchases subject to GST after adjustments
Add G17 (total purchases subject to GST) and G18 (adjustments).
G20 GST on purchases
Divide G19 (total purchases subject to GST after adjustments) by 11. Transfer this amount to 1B (GST on purchases) on your BAS.