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  • Making adjustments on your activity statements

    How to make changes to current or past activity statements to increase or decrease the amount of GST to be paid.

    You may have to make changes on your current activity statement to increase or decrease the amount of GST you must pay for a reporting period. These changes are known as 'adjustments'.

    There are two types of adjustments:

    • increasing adjustments, which increase how much GST you must pay for a reporting period
    • decreasing adjustments, which decrease how much GST you must pay for a reporting period.

    Making GST adjustments is different from correcting GST errors made on an earlier activity statement. A GST adjustment relates to a reported sale or purchase that was correct at the time of lodgment, whereas a GST error relates to an amount that was incorrect at the time of lodgment.

    Example

    Johnny K Entertainment intends to hold a concert in April. In February, they sell 2,000 tickets for $110 each including GST. They remit the $20,000 GST in their February monthly activity statement.

    In March, they cancel the concert and refund all ticket holders $110 each. In their March activity statement they include a decreasing adjustment of $20,000 (1/11th of the refunded amount).

    End of example

    See also  

      Last modified: 02 Jun 2020QC 17537