Option 1: To calculate GST and report quarterly (or monthly)
If Maria uses option 1, she needs to report and pay (or claim) her actual GST amounts each quarter. She uses the calculation worksheet method to work out her GST amounts.
Using the information in her records for the quarter, Maria fills in her calculation worksheet as follows.
Maria copies the following information from her calculation worksheet to the GST section of her activity statement:
- Total sales (label G1)
- Other GST-free sales (label G3)
- Non-capital purchases (label G11)
- GST on sales (label 1A)
- GST on purchases (label 1B).
Maria would also fill in labels for any other obligations she 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 Maria only had GST obligations, she would complete the 'Payment or refund?' section as follows:
After filling in her activity statement, Maria lodges it and pays $1,650 by the due date. She does not lodge her calculation worksheet but keeps it with her records.
Maria repeats the above steps for each quarter.