Avoid common GST errors
The ATO has outlined how to avoid common errors that may occur when completing your activity statement, accounting for GST and claiming GST credits.
Avoid common errors when completing your activity statement
To complete your activity statement correctly and ensure any refund due is processed quickly, remember to:
1. check that your purchases and sales are reported in the correct tax period
- if you report on a non-cash basis, you account for the GST payable on the sales you make in the tax period in which you issue a tax invoice or receive full or part payment (including deposits), whichever happens first
2. reconcile the figures on your activity statements with your accounting records prepared for your income tax return
3. report all of your relevant transactions at the appropriate label on your activity statement; refer to the activity statements guide for further guidance
4. lodge your activity statement even if you have nothing to report; you can phone 13 72 26 and use an automated service to lodge a nil return
5. leave boxes blank if they do not apply to you, but if a box does apply and you have nothing to report, use a zero
6. lodge your activity statement through the online portal as you will be prompted to correct many simple errors and you may get an extra two weeks to lodge
7. check that you are using the correct accounting method
- if you are in the café and restaurant industry, the simplified accounting methods may not be appropriate; see the Simplified GST accounting methods for food retailers guide
8. only complete the boxes that are relevant to you
- if you report quarterly, you must only complete the boxes for the option you have selected; see Options for reporting and paying GST
9. if you are paying your GST by instalments and want to vary your instalment amount, provide your estimated net GST for the year and the varied amount payable for the quarter and show the correct reason code for varying your instalments; see How do you vary your instalment amount?
10. review your activity statement before lodging and check the amount calculated equals what you expect to pay or receive
11. If you lodge a paper activity statement:
- lodge your original activity statement with the ATO, as it will not accept copies of your statement
- only use a black pen and provide a contact name and daytime phone number; sign and date your activity statement before you lodge it
- round down to whole dollars and leave the cents out
Extra time to lodge & pay
Choose to lodge online and you may qualify for an extra two weeks to lodge and pay. See Lodging your activity statement online for more information.
