A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-4 - Special rules mainly about net amounts and adjustments  

Note:

The special rules in this Part mainly modify the operation of Part 2-4 , but they may affect other Parts of Chapter 2 in minor ways.

Division 142 - Excess GST  

Subdivision 142-A - Excess GST unrelated to adjustments  

142-5   When this Subdivision applies  

(1)    
This Subdivision applies if, after disregarding any amounts covered by subsection (2), your * assessed net amount for a tax period takes into account an amount of GST exceeding that which is payable.

Note:

This Subdivision applies whether or not you have paid, or been refunded, the assessed net amount.

Example:

Sunny Co mistakenly reports a negative net amount of $ 4,000 made up of GST of $ 10,000 less input tax credits of $ 14,000. In fact, Sunny Co ' s GST should have been $ 8,000 making its negative net amount $ 6,000. Sunny Co has excess GST of $ 2,000.

(2)    
Disregard the following amounts:

(a) an amount of GST that was correctly payable and attributable to the tax period, but which later becomes the subject of a * decreasing adjustment;

(b) an amount of GST that is payable, but is correctly attributable to a different tax period;

(c) an amount of GST to which section 142-16 (about low value goods) applies.