Annual GST return (GR)

The annual GST return requires the taxpayer to enter information relating to sales and purchases and the actual tax debits and tax credits that relate to a financial year period (e.g. from 1 July to 30 June). The outgoing annual GST return will be sent to taxpayers after Q4 each year (that is after 30 June).

The annual GST return is required to be lodged no later than the due date for the taxpayer's income tax return and 28 February in the year following Q4 whichever is the earliest.

A GST annual return may also be lodged by businesses that become bankrupt or are in receivership or liquidation. In this case, the period covered will be from 1 July until the time of the bankruptcy. The lodgment date is the 21st day of the month following the date of the bankruptcy.

The annual GST return is in three sections as follows:

• Information relating to sales and purchases

• Tax debits and tax credits with a calculation to determine amount refundable or payable

• Payment or refund?

Businesses with an annual turnover of $20 million or less may choose to report and pay their GST liability using the actuals or instalment method.

This involves reporting and paying:

1. At least, actual GST collected (1A) and paid (1B) and sales turnover (G1) quarterly, and

2. An annual GST information statement showing exports sales (G2), GST-free sales (G3), capital purchases (G10) and other purchases (G11).

Labels G2, G3, G10, and G11 will be disabled if Simpler BAS is enabled.

This involves reporting and paying:

1. The instalment estimate (as advised by the ATO) quarterly, and

2. An Annual GST return showing sales turnover (G1), exports sales (G2), GST-free sales (G3), capital purchases (G10) and other purchases (G11).

Labels G2, G3, G10, and G11 will be disabled if Simpler BAS is enabled.

If you have chosen to report and pay the GST actuals quarterly, you may report all GST amounts G1, 1A, 1B, G2, G3, G10 and G11 quarterly and avoid the necessity to complete an annual GST information statement. However, if the amounts reported are incomplete or incorrect for any quarter, you will need to lodge an annual GST information statement.

From 1 July 2017, small businesses with an annual GST turnover of less than $10 million will need to use Simpler BAS, a new GST reporting method. The only GST information required for Simpler BAS will be:

• G1 Total sales

• 1A GST on sales

• 1B GST on purchases.

You will need to assess whether you are required to report GST using the Simpler BAS rule. If you are reporting GST using Simpler BAS, select Y in Does the Simpler BAS rule apply? Otherwise, select N.

If Y is selected, labels G2, G3, G10, and G11 are disabled and the software will populate G10 and G11 with 0.

If N is selected, labels G2, G3, G10, and G11 are enabled and can be modified.

For more information on Simpler BAS, see Simpler BAS on the ATO website.

Label G1 total sales

Enter the actual amount for label G1 directly onto the activity statement.

The amount for label G1 may be calculated including or excluding GST and the question Does the amount shown at G1 include GST? must be answered.

For full details refer to Total Sales and Income and Other Supplies (Label G1).

Label G2 export sales

Enter the actual amount for label G2 directly onto the activity statement. A worksheet is not provided. Note that this field is disabled if Simpler BAS is set to Y.

For full details refer to Export Sales (Label G2).

Label G3 other GST-free sales

Enter the actual amount for Label G3 directly onto the activity statement. Note that this field is disabled if Simpler BAS is set to Y.

For full details refer to Other GST-Free Sales (Label G3).

Label G10 capital purchases

Complete this field only if the business made capital purchases and these were for use in its enterprise. Note that this field is disabled if Simpler BAS is set to ‘Y’.

Include the amounts paid in the current tax period, including amounts paid for capital assets such as plant and equipment, motor vehicles, land and buildings, and for other expenditure of a capital nature.

If the business does not account on a cash basis, including the amount payable for purchases or any consideration paid or where the supplier has issued an invoice requesting payment.

Also, include amounts for importations of capital items for amounts of more than $300. Capital purchases for amounts of $300 or less should be included at label G11.

Label G11 Non-capital purchases (including any GST)

Include in this field the amounts paid in the current tax period for all other purchases for use in the business, but do not include salaries and wages paid to employees. Note that this field is disabled if Simpler BAS is set to Y.

If the business does not account for GST on a cash basis, include (in the current tax period) the total amount payable for purchases for which the business has paid any of the consideration or the supplier has issued an invoice requesting payment.

For most businesses, this will include most business expenses. Purchases that are not for use in the business should not be included. (Include amounts for purchases that are only partly for use in the business. Include the whole payment at Label G11 and the part of the payment that relates to the planned private use at label G15.)

The amounts included may be payments (or the money equivalent of some other form of consideration) for goods, services or anything else for use in the business.

Calculate the total amount paid for purchases for the business.

Calculate the amount to include for importations.

Enter this total amount for purchases at G11.

Special rules apply to labels G10 and G11

These special rules apply to:

• Purchases of second-hand trading stock from unregistered persons
• Refunds for returnable containers
• Insurance premiums
• Long-term accommodation in commercial residential premises.

Refer to Special Allowable Amounts (G10/11).

Label 1A GST sales or GST instalment

The total GST to be paid.

Label 1C wine equalisation tax payable

The amount of wine equalisation tax (WET) to be paid.

Label 1E luxury car tax (LCT) payable

This field applies if the entity made a taxable supply of a luxury car in the current tax period.

A taxable supply of a luxury car is made if:

• the purchaser quoted their Australian Business Number (ABN) in respect of the supply
• the car was manufactured in Australia more than two years before the supply
• the car was imported into Australia more than two years before the supply
• the car is a GST-free export

Luxury car tax on importations of luxury cars is not shown on a BAS but is generally paid with customs duty unless the ABN is quoted to the Australian Customs Service.

Label 2A Add 1A + 1C + 1E

This field comprises the amounts at the following labels:

Label 7C fuel tax credit overclaim

Refer to Fuel tax credits on the ATO website.

Label 1B GST on purchases

This amount is the total input tax credits owed by the ATO to the business and will be offset against any GST owed (recorded at label 1A) and against other tax obligations and entitlements shown.

Label 1D wine equalisation tax (WET) refundable

The amount of wine equalisation tax to be refunded is calculated using the WET refundable guidelines.

Label 1F luxury car tax (LCT) refundable

This field applies if an adjustment needs to be made to the amount of luxury car tax paid on a previous activity statement and it is calculated using the LCT refundable guidelines.

A decreasing luxury car tax adjustment occurs because the corrected luxury car tax payable is less than the luxury car tax previously payable.

Label 1H GST instalments

Enter in this field the amount of GST instalments already reported at label 1A of your BAS for the corresponding period. This field will be closed if you have entered values at labels 7C and 7D.

Label 2B add 1B + 1D + 1F + 1H

This field comprises the amounts at the following labels:

Label 7D fuel tax credit

Refer to Fuel Tax Credits on the ATO website.

Label 9 your payment or refund amount

The net amount payable or refundable is calculated as:

A positive result represents an amount payable.

A negative result represents a refund. Does the Simpler BAS rule apply?

When the Annual GST is lodged electronically, a declaration is required.

As the declaration states – "This declaration is to be used if an entity chooses to use a third party for returning an activity statement to the ATO", it is the responsibility of the entity to retain this declaration for a period of five years after the declaration is made.

To print the declaration

• Click Reports > Print Schedule, and select the Include ELD checkbox, to print the declaration as standalone, or

• click Reports > Print Return, and select the Include ELD checkbox, to include the declaration when printing the return, or

• click Reports > Print ELD and highlight the declaration you require to print from the list provided. This list offers those declarations appropriate to the return currently open or highlighted in the Return index.

When lodging an annual IAS return, the necessary declaration is included in the transmission file by Tax.