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Edited version of private ruling
Authorisation Number: 1011848521621
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Ruling
Subject: Goods and services tax (GST) and accounting methods
Question
Can you account for GST purposes on a cash basis?
Answer
Yes.
Relevant facts and circumstances
You are registered for GST.
You correctly account for income tax purposes on a cash/receipts basis.
Reasons for decision
Summary
You can account for GST purposes on a cash basis, as you correctly account for income tax purposes on a cash/receipts basis.
Detailed reasoning
In accordance with paragraph 29-40(1)(b) of the GST Act, an entity can choose to account for GST on a cash basis if it accounts for income tax purposes on a cash/receipts basis.
In accordance with paragraph 20 of Goods and Services Tax Ruling GSTR 2000/13 Goods and services tax: accounting on a cash basis, an entity can choose to account for GST on a cash basis if it correctly accounts for income tax purposes on a cash/receipts basis.
As you correctly account for income tax purposes on a cash/receipts basis, you can choose to account for GST on a cash basis. This is the case for all financial years.
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