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RC01(Dynamo)Dynamo
6 Aug 2024

Hi All


The scenario is a motor vehicle belongs to a company with GST was written off because of car accident, but the insurance company settled it under individual's name and couldn't amend it because it was already settled. The covered value is $76800, less ITC $5585.45, and payout to personal account with remaining value, $71214.55. May I ask how to declare the settlements and GST on company BAS?


Thank you all.

1,874 views
1 replies
1,874 views
1 replies

Most helpful response

Most helpful reply

Matt_ATO(Community Support)Community Support
8 Aug 2024

Howdy @RC01,


Ensure you have all necessary documentation, including the insurance settlement statement and any correspondence with the insurer, to support your BAS entries.


Reporting on BAS

  • GST on Sales (1A): You need to report the GST component of the insurance settlement. Since the total settlement includes GST, you should report the GST amount ($5,585.45) at 1A (GST on sales).
  • Total Sales (G1): Report the total settlement amount ($76,800) at G1 (total sales).
  • GST on Purchases (1B): If you have any GST credits to claim related to the insurance settlement, report them at 1B (GST on purchases). In this case, you would claim the ITC amount of $5,585.45.

All replies

Most helpful reply

Matt_ATO(Community Support)Community Support
8 Aug 2024

Howdy @RC01,


Ensure you have all necessary documentation, including the insurance settlement statement and any correspondence with the insurer, to support your BAS entries.


Reporting on BAS

  • GST on Sales (1A): You need to report the GST component of the insurance settlement. Since the total settlement includes GST, you should report the GST amount ($5,585.45) at 1A (GST on sales).
  • Total Sales (G1): Report the total settlement amount ($76,800) at G1 (total sales).
  • GST on Purchases (1B): If you have any GST credits to claim related to the insurance settlement, report them at 1B (GST on purchases). In this case, you would claim the ITC amount of $5,585.45.

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