Why does the GST on the BAS differ from the GST account balance in the balance sheet?
You might see a difference between the GST payable or refundable on your BAS and the GST account balance in your balance sheet for these reasons.
- Your BAS and your Balance Sheet report are run on different accounting bases, that is, you run one on the cash basis and the other on the accruals basis. Run both reports on the same basis to get an accurate comparison.
- Your GST account balance includes GST amounts from previous periods. Run the Account Transactions report for the same period as your BAS to see GST account transactions just for that period. You'll need to exclude payments to or refunds from the ATO for prior periods.
- There are manual journals for GST adjustments in the period using the BAS Excluded tax rate. These transactions are excluded from the BAS but included in the GST account. Review these transactions with your adviser to check the tax type is correct.
- A custom tax rate has a rate other than 0% or 10%.
- A custom tax rate has a tax type which doesn't match the tax rate. For example a Purchases tax type with a 0% rate. (The correct tax type for a 0% rate that's reportable in G11 is GST Free Expenses.)