• Option 3: to pay a GST instalment amount

    Andrew would refer to 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.

    Andrew's purchases and sales for the first quarter are the same as in option 1; that is, his:

    • total purchases are $203,000
    • total sales are $219,500.

    Andrew's total purchases and sales for the whole year are the same as shown in option 2, that is, his:

    • annual purchases are $887,000
    • annual sales are $1,064,500.

    The ATO advised Andrew that his GST instalment amount is $1,998. Andrew lodges a quarterly activity statement showing that he is paying the instalment amount of $1,998. His activity statement for the first quarter is as follows.

    Pay a GST instalment amount

    Andrew 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 Andrew only had GST obligations, he would complete the 'Payment or refund?' section as follows.

    Pay a GST instalment amount

    After filling in his activity statement, Andrew lodges it and pays $1,998 by the due date shown on the activity statement. He repeats this process for each quarter.

    At the end of the financial year, Andrew 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.

    Andrew completes his calculation worksheet using details of his annual sales and purchases that are summarised from the records he must keep under the stock purchases method as follows.

    GST calculation worksheet for BAS

    Andrew copies the information from his calculation worksheet to his annual GST return as follows.

    Pay a GST instalment amount

    You provide these details for the period you use option 3. In Andrew's case, the period is the full financial year.

      Last modified: 20 May 2014QC 19057