GST

Question 1

GST Paid

Answer 1

The business has been charged by GST by its own suppliers and is allowed to deduct this GST on purchases from the GST liability

Question 1

GST Received

Answer 1

The tax a business collects from its customers on the behalf of the government and this amount needs to be passed onto the ATO

Question 2

GST Payable

Answer 2

GST owed by the business to the ATO when the amount of GST the business has received on its fees is greater than the GST it has paid to its suppliers.

Question 3

GST Receivable

Answer 3

GST owed to the business by the ATO when the amount of GST the business has paid to its suppliers is greater than the GST it has been received from customers.

Question 4

GST Refund

Answer 4

A cash receipt from the ATO to clear GST receivable.

Question 5

GST Settlement

Answer 5

A payment made to the ATO by a small business to settle GST Payable.

Question 6

GST Formula

Answer 6

Opening Balance of GST:
+ GST received from cutomers
- GST paid to suppliers
+GST refund
-GST settlement
=GST BALANCE