Hi Veronika
The GST report lists all transactions recorded based on the tax codes used, while the GST return report shows the GST summary for Activity Statement purposes.
CAP is the tax code used to track capital purchases, the relevant purchase amount is corrected picked up in the GST return report. It is strange to have CAP appear in sales transactions, based on this ATO's page, disposal of capital assets are generally taxable sales so GST needs to be accounted.
I'd suggest double check the sales transactions recorded with your accountant or with ATO to determine if a different tax code should be used, or if they should be recorded as negative purchases so they can be correctly reported in the Activity Statement.
Hi Clover,
I am expericeing the exact same issue. The GST on capital acquistions (or disposals in this case) is not reporting at G1 or 1A in the GST Return report, but it is in the GST Report. The two GST figures should be exactly the same. and they're not. I have checked the tax codes and they are set up correctly.
The CAP tax code is used to track GST on capital acquistions AND sales, but it is not reporting correctly on the GST Return report for sales (it's omiited as Veronika mentioned above).
It appears to be a software issue and has nothing to do with the way the transaction has been recorded or the tax codes - if it did then both reports would be out. In my case, the client has recognised the sale of a vehcile correctly, yet the GST is not showing in the GST Return report, but is on the GST Report.
Please advise why one report shows a different amount for GST on Sales (1A) than the other.
Hi CloverQ
I am experiencing the same issue as Veronika and agree with stubrady
Everything seems to be setup correctly in the background and your explanation that "the GST return report shows the GST summary for Activity Statement purposes" will result in incorrect activity statements being produced as it is excluding capital disposals. In this instance it would've resulted in the activity statement being incorrect by $18,000.
As explained by CloverQ, the CAP tax code is used to record Capital Purchases. In the GST return report transactions allocated this tax code are included in G10 and 1B as per the ATO reporting requirements. It's not possible to change the set up of that report.
Please let us know if you need further help.
