Quarterly GST reporting
If a client has GST turnover of $10 million or more then he/she must need to use the full reporting method.
Under the full reporting method, you calculate, report and pay your GST amounts quarterly. You provide more detailed information on your business activity statements (BAS).
You can use the accounts method, a way of completing your BAS directly from your accounting records or the calculation worksheet method to work out your GST amounts for your BAS.
Simpler BAS took effect from 1 July 2017. All businesses with a GST turnover of less than $10 million were automatically transitioned to Simpler BAS reporting.
When completing an activity statement (GA) or annual GST return (GR), if the business is using Simpler BAS, select Y in - “Does this business use the Simpler BAS reporting method (GST turnover < $10 million)?”; otherwise, select N.
It is important that you answer this question correctly otherwise you may receive a rejection
If profits are increasing, then one’s GST net liability will also be increasing. The instalment will represent an under payment as the ATO advised instalment is based off the prior year’s lodged activity statements. In most cases, the shortfall is not payable until May of the following year so one receives an interest free loan from the ATO to pay any GST shortfall.