Show download pdf controls
  • Reporting GST amounts and claiming GST credits 

    What to do with the GST amounts you collect

    Businesses use the BAS to let the ATO know how much they have earned, the amount of GST collected and the GST they paid for goods and services.

    When you get your BAS, fill it out, send it to the ATO and pay any money you owe by the due date. The due date is written on the BAS.

    TIP

    Keep the GST you've collected separate to your earnings. If you keep the GST in a different bank account, it is ready to be paid to the ATO when it is due.

    How to claim back the GST you pay to suppliers (GST credits)

    As GST is paid by the consumer, not businesses, you can claim back any GST you have paid for things that you have bought for your business.

    To claim a GST credit for a purchase that cost more than $82.50 (including GST) you must be registered for GST and have a valid tax invoice that records what you have purchased for your business. In most cases, the business or supplier selling the goods or services issues the tax invoice. When you receive this invoice, make sure that it contains the following information:

    • the supplier's business or trading name
    • the supplier's Australian business number (ABN)
    • the date of the tax invoice GST
    • a brief description of the items sold including the quantity and the price it was sold at
    • the GST amount (or a statement which says 'The total price includes GST')
    • your business name or ABN (if the taxable sale is $1,000 or more)
    • that the document is intended to be a tax invoice.

    To claim a GST credit for a purchase that cost $82.50 or less (including GST), you must be registered for GST and you must keep documents such as cash register dockets, receipts or invoices to support your claims.

    You must also keep your tax invoices and other GST records for five years.

    TIP

    Even if you sell GST-free items, such as plain breads and bread rolls, you can claim GST credits for the GST included in the price of things that you buy to produce the items, for example, baking trays, measuring cups and mixing bowls.

    What else can you claim?

    If you use fuels in your business and meet certain conditions you can claim fuel tax credits. For example, you may be able to claim fuel tax credits for fuel used in machinery or equipment, or for petrol used in vehicles with a gross vehicle mass (GVM) greater than 4.5 tonne. What you can claim depends on the type of fuel and how it was used. These credits will give you back some of the money you paid for your fuel.

    See also:

    Tax invoices

    Do you need to give a tax invoice to customers?

    If a customer or client asks you for a tax invoice, you must provide this within 28 days of the day they ask you for it. You must be registered for GST to issue a tax invoice.

    Example

    Anh's bakery is getting a lot of catering orders lately. She knows that sandwich, cake and fruit platters are all subjected to GST. She prepares a tax invoice for her clients and clearly states the GST that she has charged. She sends the tax invoice along with their order so she doesn't forget to do it later.

    End of example
      Last modified: 30 Nov 2012QC 26712