Question

Briefly summarise GST regulations and obligations with reference to GST classifications and relevant materials and provide the correct BAS code for each of the tabled activities. (150–160 words)

The following Activities:-   

Total sales (Please provide the BAS code and brief explanation??)

Export sales (Please provide the BAS code and brief explanation??)

Other GST-free sales (Please provide the BAS code and brief explanation??)

Capital purchases (Please provide the BAS code and brief explanation??)

Non-capital purchases (Please provide the BAS code and brief explanation??)

GST on sales (Please provide the BAS code and brief explanation??)

GST on purchases (Please provide the BAS code and brief explanation??)

Answer 1

G

G1 – Total Sales

At G1, you are asked to report your total “gross” sales. Included in this figure are all sales which are GST-free, input-taxed and/or export sales. Here is a handy guide from the ATO

G2 - Export sales

Export sales must meet the GST-free export rules to be classified as export sales. For more information about GST-free export rules, refer to GST – completing your activity statement (NAT 7392). You will also report payments for repairs of goods from overseas that will later be exported and payment for the goods used in those repairs.

G3 -Other GST Free sales

Other GST-free sales include most foods, health and education services, some childcare services, going concerns, religious services, water, sewerage and drainage services.

G10 – Capital Purchases

This is where you report purchases of business assets like plant and equipment including machinery, cash registers, computers, furniture and motor vehicles. You would also report purchases of any land or buildings.

G11 – Non-Capital Purchases

Here you report most other purchases made for the running of your business and you can include such things as trading stock, office expenses like stationery and postage, repairs, equipment hire, leases, telephone, insurance etc. There is a good rule of thumb you can use to help you separate G10 and G11 amounts which can be used for businesses whose GST turnover is less the 1 million dollars

G9 – GST on Sales

More maths – Divide G8 by 11

This resulting amount is transferred to 1A on the back of the BAS.

G20 – GST on purchases

Take the figure at G19 and divide it by 11. The resulting figure is transferred to 1B on the back of the BAS.