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Re: Actual Decline in Turnover test form for Extension #1 - GST Instalments

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Newbie

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If GST is not reported in BAS under G1, but instead under G21 GST instalment method, how will this appear for businesses when they go to complete the "Check Actual Decline in Turnover" form?

 

By reading the information on the ATO website https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper-guide---employers-reporting-thr...

it states the ATO will include the calculated/reported G1 amount for the 2019 Sept qtr.

 

What will it do where the GST instalment method has been used?

 

It would be great to know exactly what to expect in this circumstance.

 

Thank you

 

 

1 ACCEPTED SOLUTION

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Most helpful response

Devotee

Replies 2

You would need to work it out and report yourself.

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Most helpful response

Devotee

Replies 2

You would need to work it out and report yourself.

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Newbie

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Thanks for your response.

 

My concern is that the following instruction provided by the ATO does not account for where GST instalment method is used. The following is from the ATO link in the original post.

 

If you enter an amount to use for the turnover test, you will need to provide reasons as to why:

  • you did not use the total sales (G1) amount (excluding GST) that was included in your submitted activity statement
  • you used an alternative turnover test to provide the turnover amount.

Point one – suggests that only G1 amounts will be recognised 

Point two – alternative turnover test would not apply

 

Will the ATO system allow “GST instalment method used” as a valid reason for entering the amount to use for the turnover test?

Will the ATO system, in that it will not be able to prefill a total sales amount from G1 because one didn’t exist in the first place, inaccurately suppose that the business is not registered for GST? Or will it expect only that the “alternative test was used” instead?

 

This is the clarity I am seeking, please & thankyou.

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Community Support

Replies 0

Hi @tarrareoch 

 

G1 will prefill for businesses that have lodged the relevant BAS. Because you're reporting by instalments you will need to work out your actual turnover for the September quarter as @MCA_Accountants has advised.

 

When you report that to us then you should be provided with the below options to let us know why you've entered the amount manually (instead of us prefilling). You need to select all that apply:

 

  • haven't lodged activity statement
  • GST branched
  • GST annual lodgement
  • GST group head or member
  • GST joint venture
  • Total sales (G1) doesn't reflect JobKeeper GST turnover test

Based on what you've said, you pay by instaments so that means you complete an annual GST return and also G1 wouldn't reflect your total sales.

 

If we require further information about the details you provide then we will contact you.

 

Hope that helps.

 

Ari