GST – completing your activity statement - Australian Taxation Office

03 CHOOSE A METHOD TO COMPLETE YOUR ACTIVITY STATEMENTACCOUNTS METHODThe accounts method is a way of completing your activitystatement directly from your accounting records. To use thismethod, your records must be able to do all of the following:n readily identify GST amounts for your––sales––purchases––importationsn separately record any purchases or importationsthat were for either––private use––making input taxed salesn identify any GST-free or input taxed sales.An example of how to keep your records so thatyou can use the accounts method can be found onpages 44–45.If you use the accounts method, the amounts you report onyour activity statement at G1 (total sales) can be GST-inclusiveor GST-exclusive. You need to indicate whether the amountsinclude GST by marking either Yes or No with an ‘X’ in thebox under G1.G1 is the only label where you indicate a choice to reportGST‐exclusive or GST-inclusive amounts. However, if you areusing the accounts method you can also complete the otherGST labels as GST-inclusive or GST-exclusive.EXAMPLEIf you use the accounts method, you will need to get theseamounts from your accounting records and transfer themto your activity statement. Depending on which reportingoption you are using or required to use, not all of the GSTlabels indicated are required to be reported on each activitystatement.If you have your records set up in this way, you simply add upthe relevant GST amounts at the end of each reporting periodand report them at the appropriate labels on your activitystatement.Purchases and expenditureCash payments Capital purchases (incl. GST) Non‐capital purchases (incl. GST) GSTTOTALSG10G111BSales and incomeCash receipts Total sales (incl. GST) GST Export sales Other GST‐free salesTOTALSG1 1A G2 G3If you use the accounts method, you must completelabels G1, G2, G3, G10 and G11 for information purposesonly. If necessary, you can estimate the amounts on areasonably accurate basis from your accounts.12