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  • Making adjustments on your activity statements

    You may have to make changes on your current activity statement to increase or decrease the amount of GST you must pay for a reporting period. These changes are known as 'adjustments'.

    There are two types of adjustments:

    • increasing adjustments, which increase how much GST you must pay for a reporting period
    • decreasing adjustments, which decrease how much GST you must pay for a reporting period.

    Making GST adjustments is different from correcting GST errors made on an earlier activity statement. A GST adjustment relates to a reported sale or purchase that was correct at the time of lodgment, whereas a GST error relates to an amount that was incorrect at the time of lodgment.

    Example

    Johnny K Entertainment intends to hold a concert in April. In February, they sell 2,000 tickets for $110 each including GST. They remit the $20,000 GST in their February monthly activity statement.

    In March, they cancel the concert and refund all ticket holders $110 each. In their March activity statement they include a decreasing adjustment of $20,000 (1/11th of the refunded amount).

    End of example

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      Last modified: 02 Jun 2020QC 17537