ato logo
Search Suggestion:

GST errors that cannot be corrected on a later BAS

Last updated 8 October 2023

You cannot correct a credit or debit error on a later BAS if:

  • the GST error relates to or was made in a reporting period that is subject to a compliance activity
  • you have corrected the GST error in another reporting period
  • you have already lodged the later BAS.

If you are subject to compliance activity

A compliance activity is an examination of your GST affairs undertaken by us and includes reviews, audits, verification checks, record-keeping reviews/audits and similar activities. However, it does not include an activity where we have notified you in writing that the activity we are undertaking is not a compliance activity.

Once you receive advice (by phone or in writing) from us about our intention to conduct a compliance activity, you cannot correct a GST error that is the subject matter of the compliance activity or errors arising in a reporting period that is subject to the compliance activity unless we notify you in writing that you can correct the error in a later BAS.

If you find such GST errors, it is in your best interest to voluntarily disclose them. If you tell us about your GST error, it will be taken into account when we consider the application of a penalty.

A compliance activity is completed when you receive a notice of assessment or notice of amended assessment, or when we tell you that the examination has been finalised.

Example: GST errors cannot be corrected due to compliance activity

In June 2023, we notify Mike's Trading that we are conducting a review of his past property transactions. As a result, Mike undertakes his own review of his property transactions and discovers that he made GST errors claiming GST credits for purchases in relation to an input taxed sale of property. As these GST errors relate to a matter that is specified as being subject to compliance activity, Mike's Trading cannot correct these errors in a later BAS.

Mike should voluntarily disclose this error to the contact officer for the review.

Example: GST error can be corrected despite compliance activity

In November 2023 we notified Big Co that we are conducting a general review of its GST affairs for each of the monthly reporting periods ending 31 January 2022 to 28 February 2023. Big Co also conducts its own review and discovers a GST error made in working out its net amount for the February 2023 reporting period. Big Co discloses the February 2023 GST error to us. After reviewing the disclosure, we notify Big Co in writing that it can chose to correct the error itself.

Although the GST error is made for a reporting period that is subject to compliance activity, we have notified Big Co in writing that the error can be corrected during the compliance activity. Big Co can correct the error in a later BAS, if all other conditions are met.

End of example

If you have corrected the GST error in another reporting period

You cannot correct a GST error more than once. For example, if you revise the earlier period in which the GST error was made, or if you have already corrected the GST error in another reporting period, you cannot then further correct the error on a later BAS.

This includes the circumstance where you only partially correct a debit error because the relevant debit error value limit was exceeded. You cannot correct the amount that exceeded the debit error value limit on a subsequent BAS.

Revising a later lodged BAS

You cannot revise a BAS for a later tax period that you have already lodged to correct a GST error from an earlier tax period. You can only correct a GST error in a BAS that you haven’t yet lodged.

For example, if you made an error in your October BAS and have already lodged your February BAS, you cannot revise the February BAS to include the correcting information. You'll have to wait until you lodge your April BAS to correct the error (if it meets the conditions of correcting a GST error).