These instructions and examples will assist you when completing your quarterly goods and services tax (GST) instalment notice (Form S).
You have received a quarterly GST instalment notice because you:
- report and pay your GST instalments quarterly
- use the GST instalment amount to report
- have no other reporting requirements.
Instalment amount at G21
We have calculated your GST instalment amount at G21 on your instalment notice. This is based on GST information in your last annual GST return, or net GST amounts you have reported to us previously.
You can vary your instalment amount
If you think the instalment amount pre-printed at G21 is more (or less) than your expected annual GST liability for the year, you can vary the amount.
You do not have to vary your instalment amount; you can simply pay the amount at G21 each quarter and make a balancing payment (or receive a refund) when you lodge your annual GST return.
If you pay the GST instalment amount we advise by the due date, you will not incur penalties.
You may incur penalties if you vary your GST instalment amount and you underestimate your annual GST liability.
Paying the instalment amount calculated by us
To pay the GST instalment amount calculated by us at G21 on your instalment notice, you need to:
- transfer the instalment amount at G21 to the Amount paid section of the payment advice
- pay the amount by the date shown in the Payment due on section at the front of the instalment notice (using one of the How to pay options on the instalment notice)
- keep the instalment notice for your records (do not return it to us).
If you pay the GST instalment amount pre-printed on the instalment notice, there is nothing else you need to do for this quarter.
See also
Varying your instalment amount
To vary your GST instalment amount, you must complete the section on the back of the instalment notice.
In this section
- Estimate your net GST liability
- Calculate your varied instalment amount
- Write your varied instalment at G23
- Choose a reason code
- Transfer the amount to label 9
Estimate your net GST liability
Estimate your net GST liability for the year and write this amount at G22 on the back of the instalment notice.
If you have wine equalisation tax or luxury car tax liabilities, take these into account when working out your net GST for the year.
See also
Calculate your varied instalment amount
Work out your varied instalment amount for the quarter.
When working out your varied instalment amount, deduct previous quarter instalments whether paid or not. If you previously varied your instalment amount, then use the varied amount.
The calculation method differs for:
Quarterly instalment payers
Use Table 1 if you pay quarterly GST instalments.
This quarter is: |
Your GST varied amount (G23) is: |
|---|---|
the 1st in the income year for which you elected to pay GST by instalments |
25% of your estimated annual GST liability |
your 2nd for the income year |
50% of your estimated annual GST liability less the amount of your 1st quarter instalment |
your 3rd for the income year |
75% of your estimated annual GST liability less the amount of your 1st and 2nd quarter instalments |
your 4th for the income year |
100% of your estimated annual GST liability less the amount of your 1st, 2nd and 3rd quarter instalments |
Two instalment payers
Use Table 2 if you are eligible to pay two GST instalments per year. This applies to some primary producers and special professionals. You will have been advised if this applies to you.
This quarter is: |
Your GST varied amount (G23) is: |
|---|---|
your 3rd for the income year |
75% of your estimated annual GST liability |
your 4th for the income year |
100% of your estimated annual GST liability less the amount of your 3rd quarter instalment |
Write your varied instalment at G23
If the amount you worked out in step 2 is positive, write the amount at G23. If the amount is zero or negative write '0' at G23. You cannot vary your GST instalment amount below zero. Any overpayment of GST instalments will be credited to you when your annual GST return is processed.
Choose a reason code
Choose a reason for varying your instalment amount from the codes (table 2) on the back of your instalment notice and write the reason code at G24. Do not leave G24 blank.
Transfer the amount to label 9
Transfer the G23 amount to label 9. This is the total varied amount you are required to pay.
Examples
The following examples show how the GST instalment amount can be varied under different circumstances.
Example 1: paying smaller instalments
Linda is eligible and chooses to pay her GST liability by instalments. She paid the advised amount of $12,500 for the first and second quarters, but for the third quarter, she decides to vary her quarterly instalment. This is because, at the time the instalment is due, Linda estimates her annual GST liability to decrease from $50,000 to $40,000.
Linda works out her varied instalment amount for the third quarter by:
Estimating her annual net GST liability and completing label G22 |
$40,000 |
Calculating the amount to be paid by third quarter less GST instalment amounts paid for quarter one and two Varied instalment amount for third quarter |
($25,000) $ 5,000 |
Completing label G23 with varied instalment amount |
$5,000 |
Completing label G24 using a reason code from table 2 on the form |
23 |
Transferring the amount at G23 to label 9 |
$5,000 |
Completing the remaining details, lodging the form and paying $5,000 by the due date. |
|
Example 2: making larger instalments
Walker Company's quarterly GST instalment amount, as advised by us, was $25,000. Walker Co. paid this amount in their first and second quarter.
Walker Co. estimated that their annual GST liability would increase from $100,000 to $120,000.
They decided to vary their GST instalment amount to incorporate the change rather than pay the advised amount and the balance in their annual GST return.
Walker Co. work out their varied instalment amount for the third quarter by:
Estimating annual net GST liability and completing label G22 |
$120,000 |
Calculating the amount to be paid by third quarter less GST instalment amounts paid for quarter one and two Varied instalment amount for third quarter |
($50,000) $40,000 |
Completing label G23 with varied instalment amount |
$40,000 |
Completing label G24 using reason code from table 2 on the form |
23 |
Transferring the amount at G23 to label 9 |
$40,000 |
Completing the remaining details, lodging the form and paying $40,000 by the due date |
|
End of example
See also:
Instructions for completing your quarterly GST instalment notice (Form S).