• Option 3: to pay a GST instalment amount

    Maria would refer to Quarterly GST reporting to see if she is eligible to choose option 3 and pay the GST instalment amount at the end of each quarter.

    Her purchases and sales for the first quarter are the same as for option 1; that is, her total:

    • quarter 1 purchases are $121,140
    • quarter 1 sales are $160,000.

    Annual purchases and sales are the same as for option 2, that is, her annual:

    • purchases are $559,140
    • sales are $770,000.

    We advised Maria that her instalment amount is $2,299. Maria lodges a quarterly activity statement showing that she is paying the instalment amount of $2,299. Her activity statement for the first quarter is as follows:

    • This amount is advised by us.
    • Maria does not wish to vary this amount so she fills in this amount at label 1A. She does not fill in label 1B.

    Pay a GST instalment amount - front and back of activity statement

    Maria would also fill in labels for any other obligations she has. They 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:

    Pay a GST instalment amount - 'Payment or refund?' section

    After filling in her activity statement, Maria lodges it and pays $2,299 by the due date. She repeats this process for each quarter.

    After the end of the financial year, Maria must lodge an annual GST return by the due date to account for any difference between her total instalments and her actual GST liability for the year.

    Maria completes her calculation worksheet using details of her annual purchases and sales that are summarised from the records she must keep under the snapshot method as follows.

    GST calculation worksheet for BAS

    Maria copies the following information from her calculation worksheet to her annual GST return as follows:

    • Total sales (label G1)
    • Other GST-free sales (label G3)
    • Non-capital purchases (label G11).

    Pay a GST instalment amount - front and back of return

    Maria also fills in label 1H on her annual GST return, which is the total of all the GST instalments that she has paid for that period:

    • GST on sales (label 1A)
    • GST on purchases (label 1B)
    • The amount of $9,196 (for example $2,299 x 4) is the total GST instalments Maria has paid for the financial year. These are the amounts Maria has shown at label 1A on her quarterly activity statement.

    If you report and pay annually, you are only required to take the steps used in preparing the annual return at the end of the year. After calculating the GST you are liable to pay, you must pay the GST to us.

    End of attention
      Last modified: 25 Jun 2014QC 19058