How does Kontuly work out GST on a bank transaction?
Kontuly treats every bank amount as including GST. When you code a line, it splits the GST out at the account's default rate, or at the rate you choose in the tax box for that one line, and records it as GST to claim or GST collected.
Examples
- $110.00 paid for stationery, coded to Office Supplies (GST 10%): $100.00 to Office Supplies and $10.00 to GST Receivable, which you claim at 1B.
- $1,100.00 received, coded to Services Income (GST 10%): $1,000.00 to Services Income and $100.00 to GST Payable, which you report at 1A.
- $12.00 of bank fees, coded to Bank Fees (GST Free): the whole $12.00 is an expense, with no GST.
If your business isn't registered for GST, nothing is split out: the whole amount goes to the account.
Where does the rate come from?
In Banking, the tax box in front of the account starts at Account's rate: the default GST code of the account in the Chart of Accounts. Choose a different rate first when one line is different, for example GST Free for an export sale coded to an income account that normally carries GST. Bank rules use the account's rate unless the rule sets its own Tax rate.
A purchase with mixed GST
A supermarket receipt with GST-free food and taxed items needs a split: each line gets its own rate.
Paid an invoice or bill through the bank?
Match the bank line to the invoice or bill instead of coding it. The GST was recorded when the invoice or bill was approved, so matching doesn't count it again.
I coded the wrong rate
Click Unassign (reverse) on the line and code it again with the right rate. See How do I fix a bank transaction coded to the wrong account?
The GST is checked by your accountant or BAS agent, not by Kontuly: whether a purchase carries GST is on the supplier's tax invoice.
Related questions
- How do I code bank transactions in Kontuly?Code each bank line in Kontuly's Banking screen by choosing an account in its Assign to column. GST is split out for you, and you can code many lines at once.
- What GST codes does Kontuly use, and can I add my own?Kontuly starts with GST 10%, GST Free, Input Taxed and No GST. What each means on your BAS, how account defaults work, and how to add a rate.
- How do I split a bank transaction across accounts in Kontuly?Split one bank line across several accounts and GST rates in Kontuly, for part-private purchases, mixed GST-free items or a bill covering more than one cost.
More about gst, bas and tax
- How do I prepare my BAS figures in Kontuly?Kontuly's GST Report prepares the G1, 1A and 1B labels of your BAS, plus PAYG labels if you set them up. Here's how to run it for your BAS period.
- Cash or accruals: when does Kontuly report GST?On the accruals basis Kontuly counts GST on the invoice or bill date; on the cash basis, when the money is paid. How to choose and what changes.
- How does Kontuly work out PAYG withholding W1 and W2?Kontuly has no payroll, but reads BAS labels W1 and W2 from your wages and PAYG withholding accounts. How to set them up and record each pay run.
- How do I add PAYG instalments to my BAS in Kontuly?Set PAYG income tax instalments in Kontuly's BAS PAYG settings as your ATO notice amount (T7) or rate (T2), and the GST Report adds 5A, 8A and 9.
- How do I prepare a TPAR (taxable payments report) in Kontuly?Flag contractors on their contact and Kontuly's Taxable Payments Annual Report totals what you paid each one, with GST, for your TPAR. You lodge it.