GST also generally known as Goods and Services Tax is the 10% levy you will recognize on most products, services and items sold or supplied in Australia.

Do I have to Sign Up for GST?

You should file for GST if:

• Your company has a Goods and Service Tax turnover of $75,000 and more (gross earnings minus GST)
• Your non-profit organization has a GST revenue of $150,000 more annually or more.
• You do provide ride-share facility, e.g.,Ola, Uber, Taxi and so on. This extends both to proprietors and those who lease a car
• You want to declare fuel tax credits for your company

How to Sign Up for GST?

It all begins with the GST registration with the ATO (Australian Taxation Office). You will have to consult on the starting date of enrolment of the GST and whether you will be filing on an accrual basis or on a cash basis. 

Note:

Cash Basis = when money goes in and out of checking account

Accrual basis = report based on receipt of the invoice

Eg:

Bill is made on 29 September 2018 and will be paid to the bank on 15 October 2018.

Cash = file on October 15, 18.

Accrual = File on September 29, 18

The Business Activity Statement

Now that you are enrolled for GST, you will need to file the GST on your revenues and expenditures to the ATO on a form called the BAS often commonly referred to as your Business Activity Statement.

Your gross income will also be reported in this report. Once all of these things are registered, this will either result in a GST payment or a GST reimbursable that is contingent on your purchases. This must be completed at least on a quarterly basis.

How to Record GST

There are a few methods to document your GST, and we’re going to mention the two most popular and simple ways:

The best way to do this is to check your bank statement on a regular basis and note the GST amounts for revenue and expenditures in a correct document, such as a spreadsheet. By turning to this spreadsheet, you can conveniently reveal the appropriate amounts at the end of a reporting period.

Set up accounting systems such as MYOB, Xero, or QuickBooks that connects to your checking account and can help you quickly categorize your transactions.

How is GST calculated?

Think you pay $2,000 for some new machinery that includes GST (already in the price).

The GST at this cost is $2,000/11 = $181.82.

If you are enrolled for GST, $181.82 will be refunded by the ATO. This is going to be published in your BAS.

You can also use a GST calculator to get the exact amounts.

What is the deadline for the GST?

Once you are enrolled, you would usually report on a quarterly basis through the Business Activity Statement also known as the BAS. The due dates of the BAS are as follows:

Reporting periods	Due Date
1 Jul – 30 Sep	28th Oct
1 Oct – 31 Dec	28th Feb
1 Jan – 31 Mar	28th Apr
1 Apr – 30 Jun	28th Jul