Private ruling: Goods and services tax (GST) and accounting methods
Published: July 2011

Ruling: Q1: Can you account for GST purposes on a cash basis? | A1: Yes.

Relevant facts and circumstances: You are registered for GST. You correctly account for income tax purposes on a cash/receipts basis.


Reasons for decision: Summary: You can account for GST purposes on a cash basis, as you correctly account for income tax purposes on a cash/receipts basis. | Detailed Reasoning - Detailed reasoning: In accordance with paragraph 29-40(1)(b) of the GST Act, an entity can choose to account for GST on a cash basis if it accounts for income tax purposes on a cash/receipts basis. In accordance with paragraph 20 of Goods and Services Tax Ruling GSTR 2000/13 Goods and services tax: accounting on a cash basis , an entity can choose to account for GST on a cash basis if it correctly accounts for income tax purposes on a cash/receipts basis. As you correctly account for income tax purposes on a cash/receipts basis, you can choose to account for GST on a cash basis. This is the case for all financial years.

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