Private ruling: GST and overpaid GST
Date of advice: 25 June 2015
Published: September 2015
Date scheme commenced: You are registered for GST.

Ruling: Q1: Will the Commissioner, in relation to the transactions where the settlement discount gives rise to a decreasing adjustment that exceeds $75, exercise his discretion under PSLA 2004/11 to treat the document provided as an adjustment note so that you can make decreasing adjustments? | A1: No, the Commissioner, in relation to the transactions where the settlement discount gives rise to a decreasing adjustment that exceeds $75, will not exercise his discretion under PSLA 2004/11 to treat the document provided as an adjustment note.

Relevant facts and circumstances: You are registered for GST. You provided discounts to your customers and remitted too much GST. You have to make decreasing adjustments.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 subsection 29-20(3), subsection 29-70, 29-75(1) & (2)

Reasons for decision: Summary: The Commissioner, in relation to the transactions where the settlement discount gives rise to a decreasing adjustment that exceeds $75, will not exercise his discretion under PSLA 2004/11 to treat the document provided as an adjustment note. However, in this instance, you can use the document provided to claim decreasing adjustments provided it contains the required minimum information, you are satisfied that it correctly reflects the correct decreasing adjustment amounts, have records to substantiate your claims while exercising reasonable care and acting in good faith. You are expected to take reasonable steps and update your procedures so that you can correctly identify future adjustments. You cannot make all the adjustments in one BAS. You are entitled to correct the errors by way of an adjustment in your previous BASs.