You may need to make an adjustment if you reported a GST sale or purchase on your previous BAS, but something occurs after you’ve lodged that changes the amount of GST you’ve reported or an amount of GST credit claimed.
For example, Matt and Joel own a hardware store, are registered for GST and lodge and pay their GST monthly. In January, they sell a lawn mower for $1,200. The lawn mower is a taxable supply and Matt (who does the books) includes $120 GST in the total GST sales amount on the January BAS.
In early February, the customer returns the lawn mower to the store (under a 3 month ‘buy and try’ warranty) and asks for their money back. Joel processes the refund of $1,200 for the customer.
As the sale was refunded, Matt will need to make an adjustment, effectively removing the $1,200 sale and $120 GST from the January activity statement. Matt does this by making an adjustment in his February activity statement.
You can make a GST adjustment on your BAS using:
- ATO Online services for individuals
- ATO Online services for business
- Standard Business Reporting (SBR) enabled software
- your registered tax adviser or BAS agent
- requesting a paper revision form.
