Configuration for GST Calculation Sheet for BAS Report

Introduction to BAS Reporting and GST Calculation

If your business is set in Australia, it’s one of the fundamental key points to have a sound knowledge and understanding of BAS Report Configuration and calculation of GST. This will be a huge favour to you as having an understanding of these points will help you in the management of your finances.

Before we jump to how BAS reporting is done, let’s get to know what exactly BAS is.

BAS is an acronym for business activity statement. It’s one of the categories of documents that need to be submitted to the ATO (Australian Taxation Office). Its submission is important as it helps in reporting GST and various other tax obligations.

It also helps in summarising the financial involvement of your business. The summarization may take place yearly, quarterly, or monthly.

We all are familiar with what the GST calculation is. The GST Calculation Sheet contains information that is used in the process to bring out a result. The GST is applied in the calculation of goods and services at a rate of 10%. Both the BAS reporting and the calculation of GST are interlinked with each other.

The GST calculation is incorporated by the BAS reporting. It’s because the details of the GST that have been collected are used to evaluate the GST liability for that particular reporting period.

The points that are helpful in BAS reporting and GST calculation are firstly the registration of the GST. It occurs soon when the limit of turnover (annual) reaches $75,000. Other than this, using the correct reporting methods is a tip, and maintaining records as well. Configuring GST for BAS is what we will be discussing in this document.

Understanding GST (Goods and Services Tax)

The place of supply holds great importance in deciding the GST. The GST is usually applied to all categories of products that are purchased. Its exception is only on goods such as petroleum and alcohol. The different stages of supply are taxed with the GST. GST is only applied where the product that has been purchased is consumed not where the product is manufactured.

Different tax slabs are appointed to various other goods and services. The taxes are levied as per the category of the products. These range from 28 to 0 percent and some of the goods are also exempt from paying any GST.

There are many benefits of carrying a system where GST is levied on the purchase of goods and services. These are:

1. Helps systematically make workflow. Responsible for making the overall process streamlined and fast. 
2. Helps in making compliance easy. Its core purpose is to make the process transparent which eventually builds a positive image in the global market.
3. Helps in increasing the competitiveness across the businesses so there is betterment for the country’s economic growth. It’s because more business is directly proportional to economic stability.

While these are the benefits, it has its challenges at the same time. These are:

1. The burden of compliance on the businesses. When they fight back against these challenges, it acquires more costs. 
2. The prices are increased after when the GST is levied on the products. 
3. The transformation of informal sectors to a formal GST taxation system is not easy to welcome. It comes with its challenges.

Essentials for Configuring a GST Calculation Sheet

The essentials needed for the GST configuration sheet include:

• Gathering information: You should have all the information regarding the data that has to be used in the calculation of GST calculation. You should know which product is assigned what tax rate, and there should be a proper period of GST reporting. It can be monthly, quarterly, or even annually as well. 
• Proper calculation setup: There should be proper fields maintained for the GST inclusive and the GST exclusive. Apply relevant formulas, in short, there should be a proper structure to follow the calculation method for GST calculation. 
• Tailor the calculation as per the need: You can choose those important elements that fit your business needs. Choose them as per the need. 
• Keep testing: Keep on testing the system and the essentials that are needed for the calculation. Cross-check all the details because a slight mistake can create a huge hurdle in the end. 
• Application of GST: You need to ponder over all of your business activities. Check how much tax rate has to be applied to each product. The application of GST needs thorough research.

While these are some of the essentials that are needed for the configuration of the GST calculation, certain key points should be needed to keep in mind. These are:

1. You should look for a professional when you feel there is something wrong that you have no clue about. Any tax expert or consultant can help you in this regard. 
2. Backing up your data is helpful. It helps keep your data safe. 
3. There should be proper security given for some of the private and important information. 
4. Do check the data that you are providing for the calculation. Any wrong or incorrect data can lead to the overall miscalculation.

Also Read: How To Calculate GST In Excel Sheet? Step-By-Step Guide

Setting Up GST Calculation Sheet Components

When you begin to set up the GST calculation sheet, you need to keep in mind the following factors:

1. Sales data: You have to choose between inclusive sales data, exclusive sales data, and GST amount on sales. 
2. Identification information: There should be a proper identification of the name of your business, the registration number of GST, and the reporting period that you are opting to choose. 
3. ITC: There should be an understanding of the total amount of GST which can be claimed back. You should also be able to identify ITC that can’t be claimed. 
4. Purchase data: You should have a thorough understanding of GST-inclusive purchases, GST-exclusive purchases, and the amount of purchases. 
5. Net GST liability: There should be a proper difference between GST payable and GST refundable. 
6. Additional factors: The additional factors can be different rates of GST that are applied as per the category of the products. The goods that are made exempt to pay any GST and those goods as well upon which the tax rate is 0%. Also, there should be proper validation for sections on which the supplies are mentioned and those which are not subjected to pay any GST.

Tips for Accurate GST Calculation

The best is to have a sound understanding of the basics of GST. You should know the concepts of GST and its calculations.

Maintaining records of important documents is essential. This helps in the future and the audits as well.

Incorporate tools and software that are the most advanced in terms of their capabilities. Also, don’t forget to cross-check the values and correct usage of the formulas to find out the results.

Keep on checking the GST portal so you stay in touch with any changes. This way, you would be able to ensure compliance as well. Also, claim ITC accurately, and don’t forget to reconcile regularly as well.

These are some of the most accurate helpful tips which are not only helpful in bringing an exact GST calculation but are also helpful in optimising the overall process.

You can have a sound system when you incorporate these tips as they bring out the best results including both accuracy and efficiency of the process.

It’s necessary to keep all these points in mind to attain sound results in the GST Calculation for Business Activity Statement.

Also Read: GST Calculation Formula: A Comprehensive Guide For Sales And Purchases

Advanced Configurations for Complex Transactions

There should be proper steps taken for advanced configuration for complex transactions. These are:

1. The foremost important step is to identify the complex transaction. If your transaction is not identified, you cannot proceed further with the initial process. 
2. You need to have profound information regarding every detail of the process. Also, note that every information you are gathering has to be 100% true by all means. 
3. Choose a tool or software that suits best the needs of your business. This way you would automate the process. 
4. This step involves the customization of the configuration. The modification of the formulas, creation of additional fields, and setting up rules take place in this step. 
5. Validate your process by testing it. Testing ensures accuracy and it’s important to do so.

Following these steps can help you with advanced configuration for transactions that are complex and have discrepancies.

Integrating GST Calculation Sheet with Accounting Software

Following are the steps that need to be followed for integration. These are:

1. You have to choose a software that suits best for integration along with your business type. It should have a feature that supports compliance within the premises of your country. 
2. You have to keep a check on data that has import and export capabilities. Choose software that can import data from the GST calculation that is already done. 
3. There should be a proper alignment of the fields in the calculation sheets. 
4. The software that you have chosen should be capable of importing the data from the calculation sheet of the GST. 
5. Keep on checking the GST settings. 
6. When you do a test check of calculations, you get an idea about how it’s going to create results. Keep on testing. 
7. You need to establish the data flow. There should be a proper process for the transfer of the data. 
8. Just when you get an idea that you are stuck in the middle of the process, or even if the process appears normal and smooth to you, seek help from a professional because sometimes what feels right, isn’t actually.

Also Read: What Are The Benefits Of Integrating GST Registration With Your Invoice/ Billing Software?

Conclusion

Accuracy in terms of compliance and GST reporting in Australia is indeed hard to practise and follow. The BAS report has a direct influence on the configuration of the GST calculation. Henceforth, it’s important to have a sound understanding of it.

Following the designated steps keeping in mind the requirements of the BAS reporting is important. This is the only way to ace it in the long run.

The GST reporting process is achievable. All you are suggested to do is to timely do Setting Up GST Sheet for BAS”. Also, invest your time and effort to build a proper configuration. Accuracy in configuration is the key component. A similar configuration can be tailored to cater to the needs of the business as well.

However, it’s recommended not to let the configuration hang in the middle but to conduct testing and check the accuracy of the configuration to generate a perfect file for BAS reporting.

FAQs:

• How do you calculate GST on BAS?

The formula is as follows:

G = p x 0.1. 

• What is the formula for calculating GST?

The general formula to calculate GST is GST rate % x original cost = GST amount

• Is GST included in BAS?

No. BAS is not included in GST. However, it’s fair to say that GST is a vital component in the form. 

• What is G1 in BAS?

G1 is denoted as the total sales in BAS. 

• What is 1B in BAS?

1B denotes any place where all the GST credits are needed to be reported. It also includes the adjustments which will be needed to pay later on. 

• What is a BAS summary?

This summary has all the related data regarding the business taxes that have been paid to the government within a certain period. They can either be lodged yearly, quarterly, or even monthly as well. 

• What is the reverse calculation of GST?

The formula to calculate reverse calculation of GST is:

GST inclusive – base price = Reverse GST

• Do you include GST in the balance sheet?

GST has to be properly mentioned in the balance sheet. The sheet that is in use needs to have a proper statement of inclusive and exclusive amounts.

• What is G7 in BAS?

G7 is equal to total adjustments that are increasing (net of decreasing adjustments). 

• What is G3 on BAS?

In BAS, the G3 is the other GST – Free sale. This section mostly includes education, healthcare, and foods/beverages.

Amitha Shet Content Writer

Amitha is a creative enthusiast, which gets her into educating the world about things she comprehends. Finance, business, and digital transformation are the topics that she is profoundly interested in so that she can make things simpler for the audience. She is currently a content strategist for a fintech company. She holds a Bachelor of Engineering in Civil Engineering, although finance is a niche that piques her interest to not just educate but to invest and gain experience.

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