New GST Transitional Return

5 Sep

The GST transitional return is divided into two parts to account for the change in the GST rate.

Part 1 for supplies at the GST rate of 12.5%

In Part 1 you record your sales and income, and purchases and expenses, plus any adjustments (including the rate change adjustment), from the start of your return period until 30 September 2010.

The GST calculation is at 12.5%, meaning your GST-inclusive sales and income, and purchases and expenses will be divided by nine (9) to find the GST component.

Part 2 for supplies at the new GST rate of 15%
In Part 2 you record your sales and income, purchases and expenses, and any adjustments from 1 October 2010 until the end of your return period.

The GST calculation is at the new GST rate of 15%, so your GST-inclusive sales and income, and purchases and expenses will be calculated by multiplying by 3 then dividing by 23 to find the GST component.

You’ll need to add together the:
•    total GST collected on sales and income from Parts 1 and 2, and
•    any GST credit for purchases and expenses from Parts 1 and 2.

The difference between these two amounts will determine whether you have GST to pay, or a GST refund.

Completing your GST transitional return
You will need to:
•    separate any goods and services you have purchased and sold before and after the rate change
•    record these supplies on the appropriate part of the GST transitional return
•    complete and file your GST transitional return and make any payment by the return and payment due date.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: