• Types of GST errors

    There are two types of GST errors you can make – a credit error or debit error.

    Credit error

    You make a credit error if you make a GST error in working out your net amount for a reporting period that would, if it was the only mistake in the reporting period, have resulted in you reporting or paying too much GST. Examples of credit errors include:

    • reporting a GST sale twice
    • overstating the GST on sales (for example, reporting the GST on sales as $10,800 rather than the correct amount of $10,000)
    • under-claiming a GST credit for your purchases
    • omitting or understating a decreasing GST adjustment or overstating an increasing GST adjustment.

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    See Correcting credit errors for more information

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    Debit error

    You make a debit error if you make a GST error in working out your net amount for a reporting period that would, if it was the only mistake in the reporting period, have resulted in you reporting or paying too little GST. Examples of debit errors include:

    • failing to include GST on a taxable sale
    • understating the GST on sales (for example, reporting the GST on sales as $1,000 rather than the correct amount of $10,000)
    • overstating GST credits (for example, claiming GST credits for a purchase twice)
    • omitting or understating an increasing GST adjustment or overstating a decreasing GST adjustment.

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    See Correcting debit errors for more information

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    Errors you cannot correct on a later activity statement

    You cannot correct a credit or debit error on a later activity statement if any of the following apply:

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    GST definitions – purchases, sales

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      Last modified: 27 Aug 2015QC 16233