Deferred GST Scheme

by PW Tax & Advisory

How to Complete the BAS for Deferred GST

If your business is approved for the Deferred GST Scheme, you don’t pay GST on taxable imports at the border. Instead, the GST is deferred and then reported on your Business Activity Statement (BAS). The good news is that if the goods are for use in your business (and not for making input-taxed supplies), you can usually claim a GST credit for the same amount.

That means the deferred GST is reported as both a liability and a credit on the same BAS – effectively cancelling out, provided you’re entitled to the full credit.

Example: Deferred GST in action

Let’s look at how it works with an example.

David runs an electronics store and is registered for the Deferred GST Scheme.

• In July, David imports speakers worth $25,000. The GST deferred at the border is $2,500.

• He also makes other local business purchases totalling $11,000, which includes $1,000 GST.

• His total sales to customers for July come to $44,000, which includes $4,000 GST collected.

When David prepares his July monthly BAS, the figures look like this:

Amount you owe the ATO

• 1A GST on sales: $4,000

• 7A Deferred GST: $2,500

• 8A Total GST on hand: $6,500

Amount the ATO owes you

• 1B GST on purchases: $1,000 + $2,500 (Deferred GST) = $3,500
  (Note: The deferred GST figure won’t appear in your accounting software – it’s prefilled in the BAS portal.)

• 8B Total credits: $3,500

Net GST payable:
8A – 8B = $6,500 – $3,500 = $3,000

Key takeaway

When you’re on the Deferred GST Scheme, always remember to:

• Report the prefilled deferred GST amount at 7A

• Claim it back at 1B (if you’re entitled to full credits)

This way, the deferred GST is properly matched and won’t leave you paying more than you should.