Option 3: to pay a GST instalment amount
Carlo would refer to the fact sheet Quarterly GST reporting to see if he is eligible to choose option 3 and pay the GST instalment amount at the end of each quarter.
Carlo's sales and purchases for the first quarter are $120,000 and $95,000 respectively – the same as in option 1. His annual sales ($520,000) and purchases ($412,000) are the same as in option 2. We advised Carlo that his GST instalment amount is $3,333.
Carlo lodges a quarterly activity statement showing the instalment amount he is paying ($3,333). His activity statement for the first quarter is as follows.
Carlo would also fill in labels for any other obligations he has. These may include PAYG instalments and PAYG withholding obligations. These amounts would also be recorded in the summary, and would result in a payment or refund.
If Carlo only had GST obligations, he would complete the 'Payment or refund?' section as follows.
After filling in his activity statement, Carlo lodges it and pays $3,333 by the due date. He repeats this process for each quarter.
After the end of the financial year, Carlo must lodge an annual GST return by the due date to account for any difference between his total instalments (an estimate) and his actual GST liability for the year. To work out his actual GST liability for the year, Carlo chooses to complete a calculation worksheet as follows.
Carlo copies the following information from his calculation worksheet to his annual GST return.